China refuses purchases of all Canadian canola; Canola Council disappointed issue can't be resolved quickly

Many questions still remain around why Chinese authorities blocked all canola export shipments from Richardson International about two weeks ago. For quite some time, China has been a major importer of Canadian canola. China’s imports account for roughly 4o per cent of of all Canadian exports of canola seed, oil, and meal.

The Canola Council of Canada (CCC) says it was hopeful for a quick resolution of the dispute, but “technical discussions to date have not indicated an immediate resolution is possible,” according to the council. On top of this frustration, and as the conversation continues at a slow pace, the CCC says Chinese importers refuse to purchase any canola seed from Canada at this time.

“We’re disappointed that differing viewpoints cannot be resolved quickly,” says Jim Everson, president of the CCC. “Under the circumstances, Canadian canola seed exporters who normally ship to China have no alternative but to supply customers in other countries who value high quality Canadian canola.”

According to a news release, 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, the council says.

Just last year, canola seed exports to China were worth $2.7 billion in 2018. Demand for the commodity remained strong until this recent dispute.

“Canadian ministers and government officials have responded quickly to Chinese concerns; however, technical discussions are unlikely to lead to an immediate resolution,” added Everson. “We urge the Government of Canada to continue to intensify efforts to resolve the situation.”

This story will be updated as more information becomes available.

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