The Canola Council of Canada (CCC) has requested federal intervention to resolve the country's trade dispute with China over canola exports, the report said. World Grain on February 28th.
In March 2019, China began blocking Canadian canola imports, citing non-compliance with its phytosanitary requirements.
At the same time, Agriculture and Agro-Food Canada (AAFC) noted that China had strengthened its inspection measures on all Canadian canola seed shipments.
The CCC is calling for a continued focus on restoring open market access to China, diversifying abroad by improving access to Asian markets, and diversifying into Canada by increasing the use of biofuels.
“The canola sector is being targeted by China,” said Jim Everson, president of World Grain’s CCC. “Farmers and the industry they are a part of cannot continue to bear the brunt of something completely beyond their control.”
According to the CCC, canola seed exports to China fell by approximately 70% in 2019 due to trade disruptions, resulting in an estimated C$1 billion (US$747 million) in lost canola revenue.
Before the dispute began, China accounted for approximately 40% of all Canadian exports of canola seeds, oil and meal.
While acknowledging that the federal government was committed to engaging Chinese authorities and resolving the dispute, Everson said actions to support market diversification have not materialized.
“Despite dozens of meetings with the government, only symbolic actions were taken,” he added. “More needs to be done to support diversification.”
The CCC, which represents canola growers, processors, life sciences companies and exporters, is also calling on the government to increase the biofuel content in diesel, which would support the canola sector and reduce greenhouse emissions.
Source: OFI Magazine
