Jan 18, 2010
Canola Production Gaining A Tiny Foothold In Brazil
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Canola, which is the third leading vegetable oil crop in the world, is gaining a tiny foothold in Brazil. According to Conab, Brazil will produce 42,000 tons of canola in 2009-10, which is 40% more than the 30,000 tons produced in 2008-09. The production is still very small compared to the estimated 65.5 million tons of soybeans that will be produced in 2009-10. Canola accounts for about 16% of the world's vegetable oil production compared to 33% from soybeans and 34% from palm oil.
Canola is produced in Brazil as a winter crop in the southern part of the country. The ideal climate in Brazil for canola would be the same climate that is good for wheat production except that canola cannot withstand frost shortly after germination or during flowering. It is planted after the full-season corn or soybean crops are harvested in May or June and it is harvested before a new crop of corn or soybeans are planted in September or October.
The total area planted to canola in Brazil is only 30,000 hectares, but it is increasing. The three largest producing states are Rio Grande do Sul, Parana, and Mato Grosso do Sul. The average yield in 2009-10 was 1,210 kg/ha, which was below the initial estimates of 1,300 kg/ha. Currently, all the canola varieties grown in Brazil are imported at relatively high prices. The learning curve for Brazilian canola producers is still very steep since it is such a new crop for this tropical country.
The interest in canola production is a result of an aggressive campaign in Brazil to increase biodiesel production. Currently, approximately 80% of the vegetable oil used in biodiesel production is soybean oil and the Brazilian government has been trying to promote other oils such as sunflowers, palm oil, castor bean, pine nut, and canola as alternatives. Brazil is currently using a B5 blend of 5% vegetable oil in petroleum diesel, but the biodiesel producers association is pushing for a B10 blend nationwide and a B20 blend in large urban areas by the year 2015. They feel very confident that the nationwide bend can be increase by 1% every year.
Canola is already one of the principal oils used in European biodiesel production. Canola seeds can be 40% oil and the leftover meal after the oil is extracted is 34 to 38% protein, which is used for animal rations.