The canola industry is hoping a federal government program aimed at developing export markets for agricultural commodities and products will be extended past its expiry date.
The government announced last week it had provided $1.47 million to the Canola Council of Canada for 2007-08 under the Canadian Agriculture and Food International (CAFI) program to promote exports of canola products.
The five-year program is scheduled to expire at the conclusion of the government’s 2007-08 fiscal year next March.
Dave Hickling, vice-president of utilization for the canola council, praised the program and said the government should either extend it or replace it with something similar.
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“It’s certainly helped us a lot over the years,” he said. “We’re telling the government to please come up with a replacement program. There could be a few improvements but generally it’s been very good.”
The council received its $1.47 million during the summer, but the government didn’t make an announcement until last week, when federal agriculture minister Gerry Ritz did so at an event in Regina.
CAFI provides $25 million in matching funds to industry groups to help promote and market products to foreign buyers.
A wide range of groups receive CAI funding, including those representing commodities such as pulse crops, flaxseed, beef, pork and seafood. Hickling said the canola council will spend more than half of its $1.47 million on market development activities in the United States to promote the health benefits of canola oil.
“That’s the market that, long term and short term, has the greatest potential growth in terms of volume and value,” he said.
Concern over trans fat has prompted many users of vegetable oil, including major restaurant chains and food manufacturers, to switch from soybean to canola oil.
The council is also working to capitalize on a health benefit claim approved by U.S. regulators last year.
“We probably have 35 to 40 major projects underway in the U.S.,” Hickling said.
The rest of the money will help promote canola oil in markets such as Mexico, China and Japan, and canola meal in markets such as Mexico, China and Pakistan.
A small amount, around $15,000, is being used to promote the export of canola oil to Europe for biofuel production.
The $1.47 million is the most the canola council has ever received under CAFI, up from $1.22 million in 2006-07 and $950,000 in 2005-06.
The council receives about $2 million in market development funding from industry sources annually, of which about $1.5 million is directed toward export markets. That’s the portion matched by the government under CAFI.
