Saskatchewan’s canola has traditionally been exported mainly to China and the United States, accounting for over 83% of the province’s total canola exports last year, according to the Canola Council of Canada. However, due to high tariffs imposed by China and trade uncertainties with the United States, the provincial government is seeking to diversify canola export markets.
Warren Kaeding, Saskatchewan’s minister of trade and export development, emphasized the urgency of taking actions to support local canola growers in light of the current challenges. Export data from Statistics Canada reveals a significant decline in Saskatchewan’s exports to China following the imposition of hefty tariffs on Canadian canola products.
Kaeding expressed optimism that additional support for the canola sector would be forthcoming, highlighting the federal government’s acknowledgment of the industry’s importance. He emphasized the interconnectedness of various Canadian industries, such as steel, pulse crops, seafood, and pork, in relation to decisions affecting the canola market.
As Saskatchewan’s canola producers complete the harvest season, Tracy Broughton, the executive director of Sask Oilseeds, noted that farmers are experiencing mixed emotions despite a promising crop yield. The stress among producers stems from concerns about selling their produce at desired prices amidst pricing uncertainties.
Broughton emphasized the need for resolving trade issues with China, the largest market for Saskatchewan’s canola seed, while also advocating for diversifying trade partnerships to reduce reliance on specific markets. Murad Al-Katib, CEO of AGT Foods, echoed the sentiment of exploring emerging markets to avoid over-reliance on established markets like the United States.
Kaeding’s recent trade mission to Southeast Asia focused on establishing trade relationships in countries like Indonesia, Malaysia, and Thailand to explore new markets for canola products. He highlighted the potential of Southeast Asia, particularly citing successful trade relations with Japan and the ASEAN region.
Concerns over canola meal sales were raised, with plans to target the ASEAN region’s dairy sector as a potential market. While U.S. tariffs do not currently affect Canadian canola products under the Canada-United States-Mexico Agreement, efforts are underway to promote Saskatchewan canola meal in ASEAN regions, aiming to tap into new opportunities for the industry’s growth.