Canadian canola is winning back markets it has been unable to supply for the past two years.
“We’re blessed,” said Canola Council of Canada president Barb Isman.
Buyers who have been cut off from Canadian supplies because of high prices don’t have much of an option of switching suppliers, because there isn’t a lot of canola available elsewhere.
“They’re going to need to come back if they want canola,” said Isman.
Canola buyers were frustrated last year by the lack of Canadian supply, but they were also vexed by poor Australian production. Some price-conscious buyers switched to other vegetable oils rather than pay high prices for canola.
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This summer a big canola crop is growing on the Canadian Prairies, but the Australian crop has less rosy prospects and other suppliers do not appear to have bumper crops.
That means most canola buyers did not buy from other canola suppliers this crop year, and next crop year Canada will be the easiest source to come to.
“We’ve lucked out a bit with difficulties in other growing regions,” said Isman.
“If (competitors) had had good crops, I think we would have had more problems.”
Farm marketing adviser Errol Anderson of Pro Market Communications said Canadian farmers may benefit from big crops in their own fields and low production elsewhere.
“Canada may have the only exportable stocks in the world,” said Anderson.
