Seed World

Third Grain Company’s Canola Exports Under Scrutiny by China: Reports

Yesterday’s announcement of a canola working group to resolve market access concerns related to trade with China is welcomed by the Canola Council of Canada. 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, the council said in a statement.

“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.

Today, Fred Gorrell, assistant deputy minister for international affairs for Agriculture Canada told the media that a third grain company has been told by China that its canola exports are under scrutiny.

“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.