Canada’s vibrant canola industry under attack from China

China Leading Customer for Canadian Canola

Statistics show that Canada is the number one producer and exporter of canola. Canadian farmers grew 23 million acres of canola in 2018. The crop contributes more than C$26 billion to the economy and accounts for nearly 250,000 Canadian jobs. Oilseed, including canola, ranks second (totaling C$6.3 billion) among the top five Canadian agricultural exports after wheat.

Seed imports by China from Canada have climbed significantly from 2.9 million metric tons in 2013 to 4.8 million tons in 2018.

These trends are reflected in the cargo numbers at the Port of Vancouver. Outbound canola shipments to China top all other trading partners, rising from 2.5 million tons in 2016 to 4.3 million tons in 2018. Between 2017 and 2018, the increase was a robust14%.

Thus, until the recent trade blockade, Chinese demand for Canadian canola has been strong, notes the Canola Council. The industry group’s chief executive, Jim Everson, has been urging the Ottawa authorities to resolve the dispute with China before its lingering effect becomes considerable.

Already, farmers in western Canada are planting 1.5 million fewer acres than they did in 2018, according to Jack Froese, a board member of the Manitoba Canola Growers.

Meanwhile, the federal government’s agriculture department recently pledged to offer Canadian canola producers with “the support they need.” This has included changing a special program that advances money against later crop sales. The change raises loan limits to C$1 million from C$400,000, with the interest-free portion boosted to C$500,000 from C$100,000.