This point is worth revisiting now that we have new 2024-25 season production data. Canola is one of South Africa’s agricultural success stories. From when we planted the crop commercially on 17k hectares in 1998-99, the area has increased to an estimated 154k hectares in 2024-25.
There has been a switch from some winter wheat and barley traditional growing areas to canola because of price competitiveness. Canola is a winter crop. Therefore, the production is primarily in the Western Cape, a winter rainfall region in South Africa.
The catalyst behind the increase in canola plantings, among other things, is a rise in domestic demand or usage for oils and oilcake. South Africa is now a net canola exporter, having exported to countries such as Germany and Belgium in the recent past.
Moreover, in the 154k hectares for the 2024-25 season, the canola production is forecast at a record 265k tonnes, up 12% y/y. In essence, we are in another possible excellent season for canola. However, we must pay close attention to weather conditions in the months ahead.
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