Agriflexibility Fund increasing canola sales in China

As part of Prime Minister Stephen Harper’s trade mission to China, Minister of Agriculture Gerry Ritz was pleased to announce that Tongwei Co. Ltd., a major Chinese feed company, intends to increase its purchase of Canadian canola meal by up to $240 million annually by 2015.

This increased demand for canola meal was facilitated by research funded by the government’s economic action plan.

The Canola Council of Canada has been working with a number of Chinese dairy and aquaculture processing companies to demonstrate the quality and nutritional benefits of canola meal.

In dairy feeding research it was observed that canola meal is cost effective, has nutritional value and contributes to increased milk production in dairy cattle. Canadian canola will help Chinese farmers achieve the goal of doubling milk production by 2015 as outlined in China’s five year plan.

In 2010, $1.8 billion worth of canola was exported to China, making it the largest market for Canadian canola.  In 2009, China imposed trade restrictions on Canadian canola seed due to the presence of blackleg.

Transition measures have allowed continued exports of Canadian canola seed, but Canada remains committed to resolving the issue, ensuring predictable trade for Canadian canola exporters.

The feed research was funded through the AgriFlexibility fund, a five-year (2009-14) initiative aimed at implementing new initiatives that will help the agriculture sector adapt to pressures and improve its competitiveness by reducing production costs, improving environmental sustainability, promoting innovation and responding to market challenges.

For more information, visit: www.agr.gc.ca.

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