WINNIPEG – The recent ban on trans fats by the City of New York may not, in itself, create a huge increase in canola oil consumption.
However, the New York law has triggered a public focus on the problems associated with trans fats which could lead to more demand for healthier oils.
Before Canadian canola growers can start cashing bigger cheques from specialty canola contracts, they should consider that they cannot treat a specialty canola crop the same way as a commodity canola crop.
Rick Wiebe, the Manitoba specialty crops supervisor for Cargill, said restaurants are switching from hydrogenated oils that contain high levels of trans fats and demanding new oils for frying.
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Wiebe told the 2006 Manitoba Agronomists Conference Dec. 12 that Canadian canola oil can fit the blossoming demand for specialty oils with zero trans fats.
He said growers and agronomists must have access to the best information on how to produce and handle such high value crops so they can get the premium for what should be a high value crop.
“Our contracts give a grower $9 a bushel for the first 10 bu.,” said Wiebe, explaining those prices apply to up front, early deliveries in September, October and November.
“After that, prices become more attractive further out when a guy has to store the canola through June and July. The producer picks the prices available, according to the basis level in his area.
“Since the rollout of our programs, we’ve seen an increased demand for 2007 and we’ve had to increase our contracted acreage in Western Canada.”
Wiebe said that while there is no significant difference in management practices for producing a specialty crop versus a commodity crop, taking shortcuts can affect oil quality and price.
“We have two years of grower surveys that match oil analysis,” Wiebe said.
“All the factors that can affect a commodity crop will also have an effect on oil quality destined for human consumption. That includes rotation, volunteer management, seeding dates, swathing timing and the whole long list of things you need to do right to get a good crop.”
Wiebe said it’s vital for the grower and his agronomist to work together to see that the contract criteria are met and everything is done according to the book.
“Make sure you take care of any volunteers. That’s an important point. And make sure you keep the contracted canola segregated from the commodity canola.”
He suggested a three or four year rotation, but said some growers are having success with Cargill’s Victory hybrid on a two year rotation. It’s more of a risk, but it can be done, he said.