Canola uncertainty continues for Canadian producers

Tension with China over canola shipments has Canadian farmers stuck in the middle.

On Tuesday, producers urged the House of Commons’ agriculture committee to quickly resolve the dispute with China.

“It’s been a disappointing winter for moving canola,” Ed White with the Western Producer told 650 CKOM. “It’s the main money-maker for most guys. It’s the most consistent money-maker.”

White isn’t convinced there’s much the house committee can do to help get canola shipments moving again.

“I don’t think anyone thinks this is truly a problem with Canadian canola,” he said. “I think everyone thinks it’s political.”

White points to the arrest of Huawei executive Meng Wanzhou in Vancouver last year as possible motivation for the canola ban.

Canadian officials arrested the tech company’s chief financial officer at the request of the United States; she faces outstanding charges in the U.S.

“I’m not sure without solving the political problem how this thing gets cleared up,” White said.

With farmers already preparing for the upcoming growing season, White explains it would be hard to cut canola out now.

“I would guess, in the end, most farmers will stick with their rotation,” he said. “It’s just so hard to monkey around with the rotation if you’re taking the agronomy seriously.”

Ultimately, White believes there are other markets for Canadian canola but said they wouldn’t be as big as China. Canola also would likely be sold at a lower rate in those markets.

He expects that Japan and the U.S. could take more and that Canada may have to start looking at ways to use more canola domestically.

— With files from The Canadian Press