Saskatchewan’s canola has traditionally had a strong presence in two key overseas markets: China and the United States. According to figures from the Canola Council of Canada, over 83% of the province’s total canola exports were directed to these markets in the past year.
However, due to hefty tariffs imposed by China, which effectively shut out Canadian producers from the market, coupled with trade uncertainties with the U.S., the provincial government is actively seeking to broaden the export horizons for canola.
Warren Kaeding, Saskatchewan’s Minister of Trade and Export Development, emphasized the urgency for actions to support local canola growers. Export data from Statistics Canada reveals a significant decline in Saskatchewan’s exports to China following the imposition of substantial tariffs on Canadian canola seed and products.
Kaeding expressed optimism that additional assistance for the sector would be forthcoming, noting the federal government’s recognition of the industry’s importance. He underscored the complexity of trade decisions, stressing how actions with one country could reverberate across multiple industries and impact relationships with other vital trading partners.
As the harvest season concludes for Saskatchewan canola producers, Tracy Broughton, the Executive Director of Sask Oilseeds, voiced farmers’ mixed feelings. While acknowledging a satisfactory crop yield, producers are apprehensive about achieving desired selling prices for their produce.
Broughton highlighted the necessity for resolving trade issues with China, the primary market for Saskatchewan’s canola seed, and urged diversification to reduce reliance on single markets. She suggested exploring trade opportunities in various Asian countries to mitigate risks.
Echoing similar sentiments, Murad Al-Katib, CEO of AGT Foods, cautioned against complacency and emphasized the importance of tapping into emerging markets. Al-Katib emphasized the need to secure market access in these regions to sustain growth and trade presence.
Kaeding reported a productive trade mission to Southeast Asia, specifically Indonesia, Malaysia, and Thailand, to explore market potential and cultivate trade ties. He identified Southeast Asia as a key region for diversifying canola product trade, citing existing strong trade relations and substantial canola sales in Japan and the ASEAN region.
The focus is currently on addressing concerns regarding canola meal, with plans to market Saskatchewan canola meal to the dairy sector in the ASEAN region, following previous successful ventures in the U.S. dairy industry. Saskatchewan aims to leverage the Canada-United States-Mexico Agreement to facilitate canola trade with the U.S., which could potentially be renegotiated.