BREAKING Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Soaring demand for Canadian canola oil used in food and fuel has resulted in plans for a massive increase in capacity to process canola seeds, including this week's announcement of a $360-million crush plant project.
But while buyers are lining up, some analysts wonder if there is enough of the crop to go around and doubt all the projects will proceed.
Canola hit record high prices last year due to strong vegetable oil demand and a severe Canadian drought that shrunk crops in the world's top producing country. Palm and soybeans are also in tight supply, helping drive up food inflation.
Federated Co-operative Limited (FCL) and partner AGT Food and Ingredients said on Monday they would build a Saskatchewan plant to crush 1.1 million tonnes of canola annually to supply oil for FCL's renewable diesel facility.
Richardson International, Ceres Global Ag Corp, Cargill Inc and Viterra Inc announced similar plans last year, drawn by demand for canola oil in foods like margarine and salad dressing, or for production of low-emitting fuels.
Combined, the plans would increase Canada's canola crush capacity by 6.8 million tonnes, or 62%.
That is a tall order to fill for Canadian farmers, whose canola production peaked in 2017, said Marlene Boersch, managing partner of Mercantile Consulting Venture. She is skeptical that all of the crush plants will materialize.
"We do have a (crop) production problem. I don't think we'll see these substantial investments for years to come."
Output concerns go beyond last year's drought. Canola acreage also hit a peak in 2017 and yields were flat from 2017-2020 before the drought.
Patrick Bergermann, FCL's associate vice-president of energy roadmap, expects its plant to purchase some canola that would otherwise go for export, which usually accounts for about half the annual crop.
FCL's plant, which may open in 2025, pending Ottawa finalizing its clean fuel regulation, will add value both from generating oil for fuel and from meal for use as a potential food protein source, he said.
"There's still ample opportunity for the industry to add crush capacity," he said.
For crushers to attract more canola seed away from export channels, they would have to bid aggressively for it, which would reduce margins, said Ken Ball, a commodity futures advisor with PI Financial. He expects project delays or cancellations.
Saskatchewan farmer Bernie McClean says the new crush plants will reduce farmers' vulnerability to trade restrictions on Canadian exports, such as from China. Farmers may boost plantings if they can successfully grow canola in hotter, drier areas, he said.
McClean, who sows 40-50% of his fields with canola, does not intend to plant more in the future, however. Sowing canola too often on the same fields can spread crop disease.
"If we get too carried away, Mother Nature has a way of coming around to bite us in the butt," McClean said.
The Canola Council of Canada industry group sees production rising to 26 million tonnes by 2025, a 33% increase from pre-drought output, based on higher yields per acre.
Canola Council Chief Executive Jim Everson expects productivity to increase as companies develop more robust seeds using gene-editing technology, but he could not identify any specific, promising seed products in development.
Demand, however, continues to rise, enticing the crushers.
A proposed rule is expected early this year from the U.S. Environmental Protection Agency approving canola for use in making renewable diesel or greener jet fuel, Everson said.
North American biofuels could consume some 6.5 million tonnes of canola annually by 2030, nearly four times the current volume, he said.
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
The federal minister of Crown-Indigenous relations is calling on Air Canada to 'make things right' with the national chief of the Assembly of First Nations, who said her headdress was removed from an airplane cabin during a flight this week.
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
A CSIS officer's allegations that she was raped repeatedly by a superior in agency vehicles set off a harassment inquiry, but also triggered an investigation into her that concluded the alleged attacks were a “misuse” of agency vehicles by the woman.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.