Thursday, August 11, 2016

Canadians risk losing China as canola customer


Canadians face a Sept. 1 deadline that could stop canola exports to its largest customer, China.

Already there are no new orders after Sept. 1, just as Prairie farmers are harvesting a bumper crop.

Intense negotiations are underway, but both sides appear set in their opinions – the Chinese that Canadian canola could be contaminated with blackleg disease that could threaten China’s rapeseed crop, the Canadians that farming practices mean there is little risk to China.

The technical issue is China’s intention to reduce the limit for “foreign materials” from 2.5 to one per cent.

Patti Miller, president of the Canola Council of Canada, told Reuters News Agency that “it’s a pretty difficult time right now.

“Both sides have been very open in expressing their desire to find a resolution, but there is a significant difference in opinion.”

The two countries’ inspection agencies are working to find a “reasonable solution,” said Yang Yundong, spokesman for the Chinese Embassy in Canada.

Canada’s farming and crop handling practices, along with China’s crushing process, mitigate any plant health risks, said Canadian Food Inspection Agency spokeswoman Maria Kubacki.