Canola oil stands to be one of the “big winners” if the Trans-Pacific Partnership deal is ratified.
Negotiations on the 12-country deal concluded earlier this month, with Canadian grain and oilseed, beef and pork sectors welcoming the market access in it.
Lawrence Yakielashek, general manager of FarmLink Marketing Solutions, explains in the interview above how there could be an opportunity to increase exports of domestically-crushed canola oil to Japan, which is already Canada’s second largest export market for canola seed.
“What I see moving forward is they’re going to continue to take 2.2 to 2.3 million tonnes of canola from Canada every year, and it’s also going to allow some canola oil to start to flow into Japan,” he explains. “It’s another outlet, which means that we have extra demand through domestic crush.”
“I do think it will eventually put extra money in the farmers’ pocket, and that will be through basis, essentially,” he notes.
Yakielashek explains feed barley and feed wheat could also be “winners” in the TPP, with increased exports to Japan, as well as improved access to the growing market of Vietnam.
The final text of the TPP has yet to be published. The deal must be ratified by all participating governments, which could take several years.