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Canadian canola producers have lost one of their major customers.
In a media release, the Canola Council of Canada (CCC) said China has temporarily halted the purchase of Canadian canola seed.
It ramps up a trade dispute between the two countries that began earlier this month after China pulled the export license of Richardson International, citing hazardous organisms in one of the company’s shipments.
“We’re disappointed,” said CCC president Jim Everson.
“While there was some initial optimism that Chinese concerns with canola trade could be resolved quickly, technical discussions to date have not indicated an immediate resolution is possible.”
China has been a major market for Canadian canola, accounting for approximately 40 per cent of all canola seed, oil and meal exports. Exports were worth $2.7 billion in 2018.
Everson said Canadian canola seed exporters have no alternative but to supply customers in other countries.
“We urge the Government of Canada to continue to intensify efforts to resolve the situation,” he said.
Farm group says decision a ‘blow’ to economy
President of the Agricultural Producers Association of Saskatchewan Todd Lewis said he’s hopeful the trade dispute gets resolved quickly.
“China is a pretty hard one to replace. It’s such a big part of our market.”
“The thing we have in our favour is we do supply a good product and there’s people in China that want to see it get there. They want our product because they like it.”
Lewis said it’s a “big blow” to the economy in the short term, noting prices will take a hit.
He said he expects fewer canola acres being seeded this spring.
