Australian Canola: European Union Fuels Demand

by Peter Hemphill (The Weekly Times) More than 80 per cent of Australia’s canola oil will end up in the fuel tanks of European cars and trucks, rather than as human food, this year.

Data compiled by Geelong grain industry consultancy Lachstock Consulting shows forecast exports of Australian canola topping 2.87 million tonnes this season, of which 2.36 million tonnes will be shipped to the European Union.

According to the Australian Oilseeds Federation, almost all canola shipped to Europe is converted to biofuels.

Japan is the next biggest buyer of Australian canola, expected to take about 166,000 tonnes, followed by China on 120,000 tonnes.

In contrast, the world’s biggest canola exporter, Canada, is forecast to sell 40 per cent of its canola to China, 20 per cent to Japan and almost nothing to the EU.

The carve-up of global markets by the world’s two biggest exporters largely evolves around the delineation between genetically modified and non-genetically modified crop.