Canada
October 16, 2024

The value of canola to the Canadian economy has more than doubled in the past decade, and now generates an average of $43.7 billion annually, according to a new independent analysis released today by the Canola Council of Canada (CCC).  The canola sector supports an average of 206,000 jobs and $16.3 billion in wages for Canadians from coast to coast.
 
“There has been a significant increase in the economic benefits from canola, impacting the Canadian economy on a large scale,” says Chris Davison, CCC president and CEO. “From 2012/13 to 2022/23, the total annual impact of canola has more than doubled, increasing by $30.5 billion.”
 
The report was developed by GlobalData Plc, a leading agri-business research firm. GlobalData used best practices for economic analysis to calculate total impact, jobs and wages that are generated as Canadian canola is developed, grown, processed and utilized. The report includes the latest data for 2022/23 and previous years (which are officially revised and updated over time), and presents averages of the three years, 2020/21-2022/23. This is the fifth time GlobalData (formerly LMC International) has done this analysis on the canola value chain.
 
The study also shows how significantly canola’s impact has grown over the last decade, along with the impact of domestic processing expansion and the burgeoning biofuels market. Since 2012/13:

• The total wage impact of the sector has increased more than 80 per cent to its 2022/23 peak, adding over $8 billion in wages to the Canadian economy.
• Domestic canola processing and refining have expanded significantly and in 2022/23, now generates more than six times the economic impact.
• The economic contribution of canola-based biofuel production rose from $70 million to $1.1 billion in 2022/23.

The growth of the industry’s impact is driven by several factors. The economic benefits from canola are higher when prices and volumes produced are higher. Over the years covered in the report there was impressive economic value-add in the canola sector, peaking in the most recent year included in the analysis, 2022/23.
 
As the crop is researched, grown, handled, processed and then distributed to customers around the world, jobs are created within the canola value chain and in sectors that provide goods and services to the industry. Canola oil use in biofuels also rose significantly and accounts for over 400,000 tonnes of oil per year today.
 
“This has been a period of major investment by the industry,” says Davison. “With expansion underway in canola processing here in Canada, we are seeing a sizeable investment of capital and an important opportunity to support growth in value-added production in the years ahead.”
 
GlobalData analyzed 11 individual segments of the canola value chain, with the majority of economic benefits stemming from the business of growing canola. Beyond contributing significantly to farm family incomes, canola production drives investments in research, seed development, equipment, fertilizers, crop protection and a broad array of business management services. Together, these activities contribute approximately $25 billion to Canada's economy each year.
 
“The canola value chain is committed to canola’s continued success by improving production, nurturing opportunities for growth and diversification, and leveraging the unique qualities of our outstanding products,” says Davison. “Canola’s impact is felt across Canada and around the world, and it remains a source of immense pride for our industry.”
 
GlobalData found that these effects are felt across the country, including by Canadians living far from where canola is grown and processed. While the greatest economic benefit is in the Prairies, canola also has a significant impact on the economies of Ontario ($3 billion), Quebec ($1.4 billion), British Columbia ($627 million) and the Maritime provinces ($205 million).  
 
The full report and a summary fact sheet are available on the Canola Council of Canada website.

The Canola Council of Canada is a full value chain organization representing canola growers, processors, life science companies and exporters. For more information, visit canolacouncil.org.

 

Website: http://www.canola-council.org

Published: October 16, 2024