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The strong growth of South Africa’s canola industry over the past decade is creating new opportunities for local investment, further processing and market development - but sustainable expansion will depend on continued access to innovative genetics, new technology, responsible production practices and the development of both local and export markets.
This was the central message from the “Canola: A Golden Future” panel discussion held at NAMPO Cape on 10 September. Grain SA’s Head of Grain Economics and Member Services, Corné Louw, joined Franco le Roux, Zander Spammer, Andries Theron and Piet Lombard to discuss the industry’s growth, future production potential, processing, market development, genetics and risks.
Over the past number of years, canola has developed from an alternative rotational crop into a core component of the production system, particularly in the Western Cape. South African plantings have grown from 34 000 ha in 2010, to 74 120 ha in 2020, 165 750 ha in 2024, 174 515 ha in 2025, and approximately 192 300 ha in 2026. Around 188 000 ha of this is planted in the Western Cape.
This growth reflects advances in genetics, production technology, mechanisation, research and market development, as well as the value of canola within a sustainable crop rotation system. The discussion highlighted that canola is no longer merely a tool for crop rotation and weed control but has become an important economic crop in its own right. Over the past few years, canola has come to the rescue of many producers in the Western Cape, and this year may once again prove no different.
An important development further highlighting the industry’s growth potential is Overberg Agri’s plans for additional canola processing capacity in the Swartland.
Overberg Agri is currently undertaking the necessary applications and studies for the possible establishment of a canola crushing facility in the Swartland by 2027. The proposed investment could enable further value addition for producers in the region and create additional processing capacity to support the growth in canola production.
For Swartland producers, processing closer to the production area could also support a more efficient regional value chain. The investment is simultaneously a positive indication of private-sector confidence in the industry’s long-term potential.
The discussion emphasised that production growth and market development must go hand in hand.
As local production increases, export opportunities will become increasingly important to support the sustainable growth of the industry - particularly if production expands faster than domestic consumption and processing capacity. The industry already has experience with canola exports, and the panel highlighted further market development as an important next step.
Where economically feasible, however, local processing and value addition remain the preferred option. By processing oil, meal and other canola products locally, more value can be retained within the South African economy. The panel agreed that, where possible, it is preferable to export processed products rather than raw grain.
There are also further opportunities to develop local demand for canola meal, particularly in the poultry, dairy and animal-feed industries.
The panel placed strong emphasis on the role of new genetics and seed technology in the industry’s next phase of growth.
Improved cultivars have already played an important role in increasing yields, improving adaptability and managing production risk. Continued investment in research, genetics and new breeding technologies will be essential to protect producers’ competitiveness and strengthen the industry against changing disease, weed and climate pressures.
At the same time, the production tools already available must also be protected.
The responsible use of agricultural chemicals is essential for managing weed resistance and maintaining the long-term effectiveness of chemical control measures. The panel also cautioned that incorrect or irresponsible chemical use could affect the marketability of products and access to export markets.
For Grain SA, the key message emerging from the discussion is that canola’s golden future does not lie simply in planting more hectares, but in developing a value chain that grows alongside production.
This requires profitable producers, continued investment in genetics and technology, responsible production practices, sufficient local processing capacity and access to growing domestic and international markets.
The success of the canola industry to date has been built on collaboration between producers, researchers, seed companies, processors, marketers and industry organisations. If this collaboration continues, there is a strong foundation from which to sustainably unlock canola’s next phase of growth and create further value within South Africa’s agricultural economy.