| Consumption of canola oil in the United States has grown steadily over the last 20 years, from 93 million pounds in 1985/86 to 1.90 billion pounds in 2005/06. The growing demand has been met by increases in both domestic production and net imports of canola oil. Canola oil, in the food sector, is "the healthiest" among all commercially traded oils. This study analyzes the impacts of economic factors on consumer demand for canola oil. The U.S. demand for canola oil is specified as a function of its own price, prices of substitute edible vegetable oils (soybean oil and sunflower oil), and income. It also describes trends in canola production in the United States compared to Canada, the characteristics of canola oil for human consumption. Data analysis from 1991 to 2010 showed that U.S. demand for canola oil (consumption) was influenced mostly by prices of substitute vegetable oils. The U.S. Food and Drug Administration in January 1985 granted canola oil GRAS (Generally Recognized as Safe) status for use in human foods, and the passage of the 1990 U.S. Farm Bill should lead to the continued expansion of canola oil production in the United States.;Key words: Canola oil, consumption, price. |
