Agriculture in general and the canola sector in particular, are good for the provincial, and national economies.
That was the message those attending a noon luncheon meeting of the Yorkton Chamber of Commerce heard Thursday from Janice Tranberg, Executive Director, Sask Canola.
“Agriculture accounts for about eight percent of the GDP (Gross Domestic Product),” she said, adding that helps account of one-in-eight jobs being related to the agriculture sector.
In specific terms canola contributes “$19.3 billion to our Canadian economy,” said Tranberg, adding there are 250,000 jobs related to the canola sector with annual wages of $12.5 billion.
Tranberg said you only need to look at a canola crushing plant, like the two situated here, to see people in the industry who buy homes and cars which help the local economy.
That is reflected locally.
“So much canola is grown around here,” said Tranberg, who added canola acres have grown since its creation and introduction nearly 50-years ago.
Today Saskatchewan production has become relatively stable with annual production the last half decade in the 7-7.5 million tonne range.
Most of that production ends up transported as seed, or as oil and meal to other markets.
“Ninety per cent of what we produce is actually exported,” said Tranberg. “It’s being used around the world.”
That said the United States is the key market, taking 65 per cent of oils exported and 96 per cent of the meal (what is left after the pool is crushed to extract the oil).
After the U.S., the next three largest markets for Canadian canola are China, Mexico and Japan, where exports are generally for the whole seed which is processed in the country doing the importing.
Tranberg said canola has some definite health benefits based on its oil profile, compared to all other vegetable oils the market, canola oil has the lowest levels, and canola oil also contains very high levels of heart-healthy monounsaturated fatty acids, which lowers bad cholesterol (LDL) and helps control blood glucose.
The oil profile is attracting new users.
“People are becoming aware of the health benefits,” she said.
However, more work on raising awareness is required.
While the Canadian Prairies are using canola oil, it has the largest market share, in Ontario that is not the case where use is behind veg oil.
Tranberg said Sask Canola is working with organization such as Canadian Diabetes Association, and the Heart & Stroke Foundation to raise awareness of the health properties of the oil Canadian farmers produce.
In general, Sask Canola projects are funded by farmers, said Tranberg. When canola is sold a 75-cent per tonne levy is collected. The levy is voluntary, with producers having the option to request it refunded.
However, Tranbery noted “around 95 per cent of farmers give us the levy.”
Farmers can claim a portion of the levy on both their provincial and federal income tax for a credit.
While Sask Canola has several areas it focuses on, research is first and foremost.
“Forty per cent of our budget is spent on research,” said Tranberg, adding that is a good investment as it attracts dollars from other sources. What projects to invest in, with a basic question being asked said Tranberg, “how is this going to help me on my farm.”
A panel of producers and research help determine this.
In 2014, it was shown “for every dollar we invested in research projects we were able to access about four (dollars).”
The additional money comes from sources such as the Agriculture Development Fund.
In terms of research, Tranberg said they look to fund programs which can be utilized on the farm by producers.
Tranberg said that means research goes into areas such as flea beetle control straight combing versus swathing, and germination vigour.
“Farmers take things that work and use it on their farms,” she said.
