SA’s canola production is on the rise
SOUTH Africa’s canola production is expected to increase in the short term, owing to the recent rains in the country.
Canola production has been in decline just like the rest of the agricultural sector over the last two seasons, because of the drought that has plagued the country, according to Wandile Sihlobo, a senior economist at the Agricultural Business Chamber.
“The past two seasons have not been good for canola production in the world. In fact, since 2013/14 season, global canola production has been on the decline – from 71.6 million tons to an expected 65.1 million tons in the 2016/17 season,” Sihlobo said.
Upward trend
Although there has been a decline in the past two years, South Africa is on the upward trend if you look at the longer term.
“South Africa’s canola production has increased significantly over the past 19 years. Area planted increased from 17 000 hectares in 1998/99 season to 71 050ha in the 2016/17 season,” Sihlobo said.
“Meanwhile, canola production increased from 21 000 tons in 1998/99 to 93 000 tons in the 2015/16 season. At the moment, South Africa’s canola crop is in good condition, following the National Bank, agreed with Sihlobo. He said canola oil was in demand fuelled by the emergence of the middle class.
“It has low saturated fat of any common cooking oil. There has been a huge demand, because of its health benefits. In the last six years South Africa has increased canola production by 70 percent,” Makube said.
Canola is planted in the Western Cape as the climate is suitable.
Improving crop
“The Western Cape has recorded about a 4 percent increase in dam levels following the recent rains in the country. This will see the canola crop improving, because of the rains. We expect better crop yields when the results come out later on,” Makube said.
According to Sihlobo, going forward the 2016/17 global production is expected to decrease by 6 percent from the previous season, owing to expected annual production decreases in Canada (minus 8 percent), Ukraine (minus 23 percent), China (minus 15 percent) and the EU (minus 5 percent).
“However, Indian and Australian canola production are expected to increase by 13 percent and 10 percent, respectively. This rebound is on the back of favourable weather conditions in those two countries,” he said.