Saskatchewan’s canola industry has been heavily reliant on China and the United States as key export markets, receiving over 83% of the province’s total canola exports last year, as reported by the Canola Council of Canada. However, due to steep tariffs imposed by China and ongoing trade uncertainties with the U.S., the provincial government is actively seeking to expand its canola export destinations.
Warren Kaeding, Saskatchewan’s Minister of Trade and Export Development, emphasized the urgency for actions to support local canola growers amidst these challenges. Statistics Canada data reveals a significant decline in Saskatchewan’s exports to China following the imposition of high tariffs on Canadian canola seed and products by the Chinese government.
Kaeding expressed optimism about forthcoming support for the canola sector, highlighting the federal government’s recognition of the industry’s importance. He emphasized the complexity of trade decisions affecting various Canadian industries beyond canola, such as steel, pulse crops, seafood, and pork, underscoring the delicate balance in resolving trade disputes.
As Saskatchewan’s canola harvest season concludes, Tracy Broughton, the executive director of Sask Oilseeds, noted that farmers are facing uncertainty and stress regarding selling their crops at desired prices. Broughton underscored the need for resolving trade issues with China while advocating for diversifying trade partners to reduce reliance on a few markets.
CEO Murad Al-Katib echoed the call for diversification, emphasizing the necessity of exploring emerging markets to sustain Canada’s trade presence and access. He pointed out the valuable lessons learned from recent trade challenges, urging industries and the government to adapt to evolving global trade dynamics.
Kaeding’s trade mission to Southeast Asia in late September aimed at strengthening ties and exploring market opportunities in the region, particularly in Indonesia, Malaysia, and Thailand. He highlighted Southeast Asia as a key focus for diversifying canola trade, citing successful trade relations in the ASEAN region and significant canola sales to Japan.
The current concern revolves around canola meal, with most of the Canadian production historically exported to the U.S. and China. While Canadian canola products are currently exempt from U.S. tariffs under the Canada-United States-Mexico Agreement, Saskatchewan aims to tap into the ASEAN dairy sector as a new market for its canola meal products.
In conclusion, Saskatchewan is actively pursuing new export markets for its canola industry, aiming to mitigate risks associated with over-reliance on specific trading partners and ensure the sector’s long-term sustainability.