Canada's canola industry is welcoming action being taken by the Government of Canada to help farmers deal with canola market access issues involving China.

“Timely action to help producers deal with unprecedented uncertainty is good news,” says Jim Everson, president of the Canola Council of Canada (CCC). “With our largest market for canola seed effectively closed, it’s important for everyone that producers can pay their bills while efforts are made to resolve the issue.”

Since market access issues affecting canola seed trade started in early March, 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. The scientific basis for China’s actions remain unclear and Canadian officials are still waiting for a response to send a delegation to China to discuss the issue.

On Wednesday, Agriculture Minister Marie-Claude Bibeau provided additional credit to producers through the Advance Payments Program (APP), expanding available credit to $1 million and providing up to $500,000 interest-free for canola production. She also announced a 2-month extension to the application deadline for AgriStability. In addition, Trade Diversification Minister Jim Carr announced efforts to expand exports to other Asian markets.

“The current market situation is creating great uncertainty for farmers,” says Bernie McClean, President of Canadian Canola Growers Association (CCGA). “With cash flow being farmers’ most immediate concern, we welcome enhancements that will help build financial predictability for at least the short to medium-term.”

CCGA is working with Agriculture and Agri-Food Canada program staff to incorporate the changes into the cash advance program.

“We’re already working on the necessary changes to our systems so that farmers can access these benefits quickly,” said CCGA CEO Rick White.

He expects CCGA will be in a position to process applications at the new limits in the near future. CCGA began issuing advances under the 2019-20 APP on April 1, 2019.

The Canola Council says in light of how technical engagement to date has not resolved the issue, it’s clear that industry and government need to work together on a comprehensive plan to develop alternative markets. Through the industry-government canola working group, the CCC has outlined what’s required to diversify canola exports, with steps including:

- risk coverage for new canola buyers
- an enhanced market diversification presence in Asia to seize opportunity created by the Comprehensive and Progressive Trans-Pacific Partnership
- utilizing canola oil in Canada for biofuel that lowers greenhouse gas emissions

One way the CCC is proposing to expand sales to Asian markets is to establish a government-industry export diversification office in the region to address market access issues and enhance promotion activities.

“We need to consider all options to resume seed exports to China,” says Everson. “Predictable, rules-based trade is critical to Canadian agriculture and China remains an important market.”

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.