Farmers, industry weigh options amid canola spat with China

Everyone from farmers to grain handlers is concerned over China’s move to block canola shipments from Winnipeg-based Richardson International.

Jim Everson, president of the Canola Council of Canada, spoke on the issue Wednesday on Gormley.

“Exports of Canadian canola to China is done by numerous companies. So it’s a concern for the entire industry when one company is targeted this way,” Everson said.

The suspension of Richardson’s export licence was reportedly due to shipments contaminated with unacceptable levels of what the Chinese termed “prohibited pests.” The company has claimed all its shipments were in compliance with Chinese standards.

Saskatchewan Trade and Export Partnership CEO Chris Dekker told Gormley he viewed the Richardson situation as Chinese retaliation for Canada’s arrest of Huawei executive Meng Wenzhou, who currently faces extradition to the U.S. to face charges of violating sanctions against Iran.

“This is about a bigger issue between China and Canada. These have to be separate issues, our obligations under the extradition treaties and the business we conduct with China,” Dekker said.

Dekker said Canada would have to lean on the U.S. market if China opts to further restrict imports of canola seed. He said Japan also represented a potential customer, particularly for canola oil.

Farmers sticking with canola despite uncertainty

Aaron Siemens told 650 CKOM that canola’s staying in the crop rotation this year at his farm near Lucky Lake despite the situation with China.

“The negative news of that happening is a trickle down through the market,” he said.

Kirby Schmidt near Watrous said he also plans to grow canola this year, but admitted the dispute is weighing on his mind.

“(China) can hold out longer than we can with selling our product. They seem to be able to manage and hold out without buying,” he said.