Canola farmers await final word from China

China represents a $2 billion canola customer for Canada so walking away from the deal would also have a big impact, Hall said.

“Would prices drop? There’s a good chance of it,” he said.

The Chinese government has cited concerns about crop disease as the reason behind the move to impose tougher restrictions, but Hall is concerned there might be more to it than that.

“I think they’re looking at possibly a little more of a non-tariff barrier but that’s just speculation, no one knows for certain,” he said.

Prime Minister Justin Trudeau is in China this week, hoping to improve economic ties and the canola restrictions are among the items on the agenda.

Hall said he hopes to see a resolution soon.

“It’s going to be a while before it’s resolved I think but who knows, we’ve seen flips in positioning before,” he said.

The Ministry of Agriculture has been keeping a close eye on the talks between Canada and China.

Saskatchewan’s Agriculture Minister Lyle Stewart said mandating a one per cent dockage will put Canadian producers at a disadvantage.

“Because contrary to what China may be saying publicly, it’s our understanding this is not being applied to other countries, particularly Australia,” he said.

The issue is not new to Saskatchewan and according to Stewart, has already been “studied to death.”

He is hoping a science-based solution can be found to resolve the discussion, adding there is no risk posed by two and a half per cent dockage.

Much like Norm Hall, Stewart said he is also concerned the issue may be more about price manipulation than dockage. The Agriculture Minister promises either way to defend the interests of Saskatchewan farmers.

“This is a market worth fighting for and we’ll do everything, we can to resolve this situation,” he said.

nmaxwell@panow.com

On Twitter: @nigelmaxwell

by Nigel Maxwell

Canola farmers await final word from China

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