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Saskatchewan reacts to China lifting ban on Canadian canola

Prybylski expects prices for Saskatchewan producers to improve even further after China lifts the ban on Canadian canola. JMC

For Saskatchewan farmers, it is a big day not only in the field but overseas as well.

After three years, the Chinese ban on Canadian canola has been removed. As of Wednesday, China has reinstated market access for two Canadian grain trading companies – Richardson International Ltd. and Viterra Inc.

According to the Canola Council of Canada, seed exports to China have fallen from $2.8 billion in 2018 before the restrictions, to $800 million in 2019, $1.4 billion in 2020 and $1.8 billion in 2021.

Click to play video: 'Canadian canola shipments blocked from China amid rising tensions'
Canadian canola shipments blocked from China amid rising tensions

Bill Prybylski, the vice-president of the Agricultural Producers Association of Saskatchewan, said his initial reaction to the ban being lifted was positive.

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“It’s unfortunate that it took this long to happen,” Prybylski said. “It’s unfortunate that the ban took place in the first place, but it’s certainly welcome news now that the ban is being lifted.”

The Canola Council of Canada shares a similar view of the situation.

“This is a positive step forward, restoring full trade in canola with China and ensuring that all Canadian exporters are treated equally by the Chinese administration,” said Jim Everson, president of the Canola Council of Canada, on their website.

Canada is the world’s largest producer of canola, and for Saskatchewan, the news is even more important.

“Saskatchewan is a major, major grower of canola,” Prybylski said. “And a lot of the canola seed that we grow is export. Any time there’s restrictions to the marketing of that canola it hurts producers financially.”

And while the ban has officially been lifted, Prybylski does not believe it will affect Saskatchewan producers until the end of the season.

“In the short term, I don’t think it’s going to make a whole lot of difference,” he said. “There’s not a whole lot of canola left on the prairies to be marketed.

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But going forward for this for this fall, hopefully that means there’s that extra customer out there that’s willing to buy the canola seed that we do produce, and more competition in the marketplace should theoretically result in better prices for producers.”

Saskatchewan’s yellow canola fields are a staple in the summer months. The key now is getting the crop in the ground.

Many areas of the province, especially in the eastern half, are still too wet for seeding.

According to this week’s crop report from May 10 to May 16, only 33 per cent of Saskatchewan crops are in the ground. This is below the five-year average of 53 per cent.

“Producers with overly saturated fields are starting to heavy harrow in attempts to dry their soils out faster,” the province said in a news release. “Producers who can are seeding as fast as possible between rains to avoid any further delays. Wind and cool daytime temperatures have hampered spraying activities for many producers in the province.”

Click to play video: 'Wet grounds slowing seeding in Saskatchewan'
Wet grounds slowing seeding in Saskatchewan

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