Food Oils

Vegetable oil demand increasing

  • The global medium term outlook is for vegetable oil demand to expand but higher prices driven by greater human consumption and demand for oil from bio-diesel production.

Supply of food quality oils

  • South Australia is well positioned to expand canola/mustard production in response to demand.
  • Low rainfall farming systems in South Australia can be improved through the inclusion of canola/mustard as break crops.

Challenges and Opportunities

  • Requires continued investment in innovation and Research and Development (R&D) to develop varieties with attributes to meet new markets for healthier diversified oils, eg increasing omega 3 and other healthier fats and reduce unhealthy fats including trans-fats (by increasing oil stability at cooking temperatures).
  • Adaptation of canola germ plasm suitable for Australian conditions (including earlier varieties for low rainfall) is significantly behind North American efforts.
  • Current restrictions on the cultivation of GM crops further limits private investment in new technologies that could contribute to the ongoing competitiveness of the state’s canola industry.
  • A commercial size solvent extraction plant to expand the SA capacity for oilseed processing to produce competitive priced oil either for the international edible oil market or for the local bio-diesel market.
  • Protein meal from the extraction plant would replace interstate and overseas imports of protein meal for South Australia’s expanding livestock industry.
  • Regional opportunity for medium capacity heat expeller plants using food quality mustard and canola as feedstocks for production of protein meal, food oils and oil feed stocks for biodiesel.