Saskatchewan’s canola industry has traditionally relied heavily on exports to China and the United States, with over 83% of the province’s total canola exports going to these countries last year, as per the Canola Council of Canada data.
However, due to the imposing tariffs from China restricting Canadian producers’ access to the market and ongoing trade uncertainties with the U.S., the Saskatchewan government is actively seeking to broaden its canola export destinations.
Warren Kaeding, Saskatchewan’s Minister of Trade and Export Development, emphasized the urgent need for actions to support local canola growers in light of these challenges. The decline in exports to China, following the significant tariffs imposed by the country, has underscored the necessity for diversifying export markets for canola.
Kaeding expressed optimism that additional support for the sector would be forthcoming, highlighting the federal government’s recognition of the importance of the canola industry. He cautioned producers to consider the broader implications of trade decisions, as they could impact relations with other crucial trading partners.
As the harvest season wraps up for Saskatchewan canola producers, Tracy Broughton, the Executive Director of Sask Oilseeds, noted that while the crop yield has been satisfactory, farmers are grappling with uncertainties regarding selling prices. Broughton stressed the need for resolving trade issues with China, while also emphasizing the importance of expanding trade partnerships to reduce reliance on specific markets.
Murad Al-Katib, CEO of AGT Foods, echoed the sentiment of diversifying trade markets, underscoring the need for Canada to explore emerging markets for sustained growth. Al-Katib emphasized the significance of recognizing and capitalizing on evolving trade dynamics.
Kaeding’s recent trade mission to Southeast Asia, focusing on Indonesia, Malaysia, and Thailand, aimed at exploring potential markets for canola products. He highlighted Southeast Asia as a priority region for diversifying trade, citing existing strong trade relations and significant canola sales in the ASEAN region.
The province is particularly eyeing opportunities to market Saskatchewan canola meal to the ASEAN region’s dairy sector, aiming to tap into new markets and reduce reliance on traditional export destinations. The focus remains on adapting to evolving trade landscapes and maximizing trade potential for the canola industry.