EDMONTON – Farmers may sometimes wonder if growing specialty canola is worth the time and hassle, but as more consumers make conscious decisions to choose healthier food, the demand for specialty canola oil will increase, says the national sales manager for Cargill’s specialty canola oil.
Willie Loh of Minneapolis, Minnesota, told farmers at the FarmTech 2003 conference that obesity is becoming the number one issue in the food industry and companies are looking for ways to keep their customers by offering healthier food.
Seed from specialty canola produces healthier oil, which is in demand by companies that want to make their food healthier.
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Loh said fast food giant McDonald’s isn’t worried about losing market share to its competition, such as Burger King or Wendy’s. Instead, it’s worried about people reading food labels and making healthier food choices.
“The major competition is reduced consumption,” Loh said.
He said Canada and the United States will soon require trans fat levels to be listed on food labels. Trans fatty acids are created when vegetable oils are hydrogenated. Hydrogenation allows the oil to stay fresher longer, have a more desirable texture and be cooked at a higher temperature. Trans fatty acids are also linked to obesity and heart disease.
Loh said about half of consumers read food labels. If trans fat is listed on food labels, he added, many consumers will look for food without it.
“If 50 percent look at the labels and one percent of them say, ‘I want to find something better,’ that product is in trouble.”
Trans fat is in everything from french fries to granola bars, crackers to cookies. The new food labels will put pressure on food manufacturers to reformulate their recipes to eliminate trans fat.
Loh said these foods can be made with special high oleic oils, which don’t need to be hydrogenated.
McDonalds is moving to reduce trans fatty acids in its food and PepsiCo, the owner of Frito Lay, the largest chip manufacturer, said it will eliminate trans fatty acids.
“They moved because industry has to respond,” Loh said.
With obesity levels in children at historic highs, the number of cases of juvenile diabetes in 10 years will skyrocket.
“Think of the lawsuits.”
He said it’s cute when children want to eat at McDonalds and get a toy, but it’s not cute when they have to stick a needle in their arm every day because they have juvenile diabetes.
Loh said with the shift toward healthier food, Cargill is convinced demand for specialty oil will increase.
If farmers are to be convinced to grow this canola, varieties will have to yield the same as traditional canola varieties. He said Cargill’s InterMountain Canola has varieties that do that.
Cargill specialty canola oil production agreements pay premiums of $25-$45 per tonne if quality standards are met.
