Canola & China – What Growers Should Know

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Alberta Canola continues to work on behalf of growers through the Canola Council of Canada (CCC) on the challenges that persist for canola seed exports to China. Alberta Canola is a core funder of the Canola Council of Canada. The Canola Council is working to keep all stakeholders informed by providing the following information which will  be updated as new information is available. This information is also posted on canaolacouncil.org

Updated May 27, 2019

Canadian canola trade to China remains consistent with recent weeks. Chinese buyers remain unwilling to purchase Canadian canola seed and the licenses of two companies, Richardson and Viterra, to export canola seed to China are suspended. Oil exports continue to occur and are being monitored closely. Canola meal shipments remain unaffected. As has been reported, it is becoming evident that Chinese buyers are reluctant to purchase a variety of Canadian grains and oilseed products.

The Canola Working Group remains focused on regaining access to the Chinese market and continues to meet regularly. It is actively considering all options to support predictable, rules-based trade – particularly as China has not responded to requests for a Canadian delegation to visit to understand the scientific basis behind China’s actions. The Group is working on diversifying canola exports and is reviewing a range of activities that include risk coverage for new canola buyers and enhancing market access and promotion activities in alternative Asian markets where there’s opportunities for canola seed, oil and meal. Diversifying markets in Canada by increasing the amount of canola used in biofuel is also being discussed. Supporting producers is top of mind for the Group and efforts are underway to monitor market conditions closely, so that if action is needed in the future it is timely and effective.

On May 24, CCC hosted an open call for several hundred industry and grower representatives, providing an update from federal Agriculture and Agri-Food Minister Marie-Claude Bibeau, CCC president Jim Everson and Canadian Canola Growers Association CEO Rick White, and the opportunity to submit questions. The Canadian government has asked China several times for scientific evidence supporting its claims about pests, including at the WTO General Council, though it has not been provided.

Source: Alberta Canola