Chinese canola embargo has some local producers scrambling

That’s because of last week’s announcement that China had embargoed an incoming Richardson Pioneer shipment of canola from entering the country.

The price of canola has since softened by around $1.50 per bushel according to Betcker, who is now left wondering how much he’ll invest in the normally stable crop.

“Do we put in the same or do we cut back 100, 200, or 300 acres and put in other crops?” he said. “We’re just trying to figure that out right now.”

T Bar Cattle Company has been growing canola over the last 15 years, averaging over 1,000 acres per yearly harvest.

Serving as their most consistent money making crop, the Betckers said they can only wait so long evaluating canola prices before looking elsewhere.

“The other crops start to take over as far as profitability compared to canola,” he said. “So, you may see some switching to other crops like wheat or durum.”

China has claimed the embargo is due to harmful pests found in the canola and not related to the ongoing tensions between the two countries following the Canadian arrest of Huawei executive Meng Wanzhou.

However, Betcker isn’t buying that justification.

“Canola is not one of the crops that insects get into that readily, so read between the lines,” he said.

Speaking in Winnipeg last week, federal international trade minister Jim Carr said the government is requesting proof from the Chinese that their canola crops have been compromised.

“It’s moved by one of our most distinguished companies,” said Carr. “So, I think the onus is on the Chinese to show us through samples or through some science-based evidence that there’s something wrong with this canola.”

China is Canada’s largest trading partner when it comes to canola, with the Chinese receiving around 40 percent of the country’s exports.

Pressure is also coming from the provincial level, as premier Rachel Notley is calling on Ottawa to open up a dialogue with China.

“We need our federal government to be completely focused on finding a solution to this problem,” said Notley.

Betcker begins his seeding in early May and will need to make decisions on what crops he’s going to plant by then.

He added that leaves just a few weeks for the canola market to stabilize.

“Hopefully by that time they have it settled and we can carry on like we usually do,” he said. “If not, there’s going to be some fast plans made.”

Richardson Pioneer, who are one of Canada’s largest canola exporters, claimed last week that China revoked their ability to export to the country.

by Scott Roblin

Chinese canola embargo has some local producers scrambling

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