Tuesday, February 07, 2012
One of the world’s largest producers of livestock feed has announced it intends to purchase up to $300 million of Canadian canola meal annually by 2015.
As part of agriculture minister’s Gerry Ritz’s mission to China, the announcement by Tongwei highlights the success achieved by the Canola Council of Canada (CCC) and the Government of Canada in expanding markets for Canadian Canola. Tongwei currently utilizes approximately $60 million of canola meal.
“It’s satisfying to see our collective efforts to share the value of Canada’s high quality canola meal pay off,” says Jim Everson, CCC vice president, Corporate Affairs. “Tongwei’s increasing interest in Canadian canola shows the superior value of canola meal as an animal feed and aquafeed and demonstrates how the industry can work with government to increase market opportunities for Canadian canola.”
The CCC has been working with Tongwei to promote the benefit of using canola meal as an ingredient in its aquafeed. Tongwei, headquartered in Chengdu China, is one of China’s largest aquaculture feed producers with a 25% share of the Chinese market for fish food.
With support from Canada’s Economic Action Plan, the CCC has worked with a number of feed processors in China to research new uses for canola and its high quality oil and meal. As a result of this research, Tongwei is using an increasing amount of Canadian canola meal in its aquafeed rations.
“Finding new markets for canola meal is an important part of growing the demand for canola in China,” says Everson, who is in China for the announcement. “When Chinese dairy and aquaculture producers become more aware of the benefits of canola meal, the Canadian canola industry benefits through strong prices and increased market options.”
Feeding a rapidly expanding aquaculture sector, Tongwei is expecting its aquafeed and animal feed production to reach 10 million tonnes by 2015. It is one of many purchasers that made China the second largest export market for Canadian canola in 2010 – worth approximately $1.8 billion. Canola is Canada’s most valuable crop, generating over $15.4 billion in economic activity each year.
The CCC is a full value chain organization representing the entire canola industry, including growers, seed developers, crushers and exporters.
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For further comment, media may call:
Jim Everson, vice-president Corporate Affairs
Canola Council of Canada