April 1, 2019 – Today’s announcement of a canola working group to resolve market access concerns related to trade with China is welcomed by the Canola Council. As China is a major market for Canadian canola, bringing senior leaders together from both government and industry and providing them the mandate to take action will help Canada quickly take necessary measures.
“We’re pleased that the government has recognized the seriousness of the issue and taken action,” says Jim Everson, president of the Canola Council. “As a group, we’ll be meeting right away to continue resolving the issue and to help the sector navigate the uncertainty it is causing.”
The Canola Council has been working closely with the Government of Canada on market access issues affecting canola seed trade with China over the last several 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 have been suspended. China has indicated they have a quality concern with Canadian canola seed. Canola oil and meal are not subject to the same challenges.
“This group will ensure that all Government of Canada resources support resolving China’s concerns,” says Everson. “We’re very confident in the quality of our canola and want to resolve the difference of opinion between Canada and China as quickly as possible.”
The Canadian canola industry makes every effort to meet the requirements of customers and their governments around the world. From seed developers, growers, processors and exporters, all segments of the value chain coordinate to ensure consistent and high quality canola.
China has been a major market for Canadian canola, accounting for approximately 40% of all canola seed, oil and meal exports. Canola seed exports to China were worth $2.7 billion in 2018. Demand has been very strong until recent disruptions.
The Canola Council of Canada is a full value chain organization representing canola growers, processors, life science companies and exporters. Keep it Coming 2025 is the strategic plan to ensure the canola industry’s continued growth, demand, stability and success – achieving 52 bushels per acre to meet global market demand of 26 million metric tonnes by the year 2025.
For more information on trade with China, check out our centralized resource for common questions and updates: Canola & China – What growers should know
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