Canadian and Chinese Officials Discuss Canola Trade

Apr 02, 2020

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The Canola Council of Canada says Canadian and Chinese government officials had a call Monday to discuss the trading conditions for canola seed.

China telling officials here that the current trade in canola seed can continue on a temporary measure, but shipments must now contain less than 1% dockage.

Brian Innes, Vice President of Public Affairs for the Canola Council of Canada says that means that our current trading in canola seed can continue.

“It also means unfortunately that the exports from two of our largest canola exporters Viterra and Richardson remain blocked.”

Saskatchewan produces about half of the Canola grown in Canada.

Innes says one bright spot for the industry has been our domestic processing.

“Our canola processors are turning a record amount of canola seed into canola oil and canola meal. That means that local demand for producers from those processing plants in Yorkton, Clavet, Lloydminster and down in southern Manitoba does remain strong; but the prices they’re seeing are reflective of the challenge we have with our Chinese market. So we remain focused on getting it back.”

Innes says he’d like to see full access to China resume, noting that Canada has only been shipping about 30% of our normal canola seed exports to China.

Rick White, President of the Canadian Canola Growers Association is concerned that we no longer have a Memorandum of Understanding as it ended earlier this week.

White feels the new situation is even worse than the status quo.

“Temporary measure means China feels that they can do what they want, basically, and they systematically rejected all our science and studies regarding dockage levels. So that is quite significant. A significant step backward to have them vocally express that they don't believe in the science Canada has provided.”

 

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