Canada accounts for more than half of world trade in canola seed, meal, and oil. Canadian producers continue to expand canola area and production. Demand prospects look strong because of growing use of vegetable oils in China and India and canola-oil-based biodiesel use in the EU. The Canadian crushing industry is growing fast to support increased demand for canola oil. In the next 2 years, more than 1.5 million metric tons of canola crushing capacity is expected to be built in the Canadian Prairie Provinces. Some of the increased canola oil may be used to produce biodiesel. As Canada's nearest neighbor and fellow North American Free Trade Agreement (NAFTA) member, the United States will likely continue to purchase the majority of Canadian exports of canola oil and meal.
In the past few years, biodiesel producers in the EU have dramatically increased demand for canola oil, and crush capacity has expanded considerably. Although EU canola production has expanded to support this industry, the EU has also become a significant importer of canola seed. Much of these imports arrive from Ukraine, Belarus, and Russia. These countries have expanded canola area over the past 5 years, and there appears to be plenty of room for continued expansion if demand remains strong. Ukraine, in particular, doubled production in 2006, nearly did so again in 2007, and more than doubled output in 2008 to become the second largest canola exporter in the world.
http://www.ers.usda.gov/topics/crops/soybeans-oil-crops/canola.aspx
