SaskCanola Update - May 2019
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While farmers are working to seed the 2019 crop, below is an update on key issues including:
- The status of Canadian canola trade
- Link for farmers to join a call on May 24th for an update on trade with China
- Program enhancement details and how to apply for a cash advance

The Status of Canadian Canola Trade

On May 7th Canada raised concerns about China’s treatment of Canadian canola at the World Trade Organization, pressing China to show evidence of their quality concerns. The Canadian ambassador told WTO members at the Council meeting, including China, that, “Canada has repeatedly asked China for the scientific evidence that supports its findings and the measures taken - but China has not been forthcoming in providing this information.”  During his remarks the ambassador highlighted how an “open and predictable rules-based international trade is the only way global commerce can succeed.” After noting that Canada has tested the shipments in question twice and found they comply with Chinese requirements, Canada asked China to "engage in solution finding" as Canada has done using every available channel. Read the Canadian ambassador's full statement.

Canola trade to China hasn’t changed over the past few weeks. Chinese buyers remain unwilling to purchase Canadian canola seed and the licenses of two companies, Richardson and Viterra, to export canola seed to China are suspended. Oil exports continue to occur and are being monitored closely. Canola meal shipments remain unaffected. As has been reported, it is becoming evident that Chinese buyers are reluctant to purchase a variety of Canadian grains and oilseed products.

The Canola Working Group remains focused on regaining access to the Chinese market and continues to meet regularly. It is actively considering all options to support predictable, rules-based trade – particularly as China has not responded to requests for a Canadian delegation to visit to understand the scientific basis behind China’s actions. The Group is working on diversifying canola exports and is reviewing a range of activities that include risk coverage for new canola buyers and enhancing market access and promotion activities in alternative Asian markets where there’s opportunities for canola seed, oil and meal. Diversifying markets in Canada by increasing the amount of canola used in biofuel is also being discussed. Supporting producers is top of mind for the Group and efforts are underway to monitor market conditions closely, so that if action is needed in the future it is timely and effective.

For more information, click here to visit a landing page that we are maintaining throughout the trade disruption.

Open Call with Farmers for Update on Trade with China

The Canola Council of Canada, on behalf of growers and the entire canola value chain, is working closely with the Government of Canada to resolve challenges facing canola seed exports to China. A call will be held this Friday to provide canola growers with an update on developments and ongoing work. You will hear from: Agriculture and Agri-Food Minister Marie-Claude Bibeau, CCC president Jim Everson, and CCGA CEO Rick White.

Friday, May 24
7:30 am Saskatchewan time
Call will include remarks followed by 15-20 minutes of questions
Click here to register for the call

Growers will have the opportunity to submit questions when registering. After registering, you will receive information about how to join by phone or computer. Please note this will be conference call with audio only (will not include any visuals of the speakers). Those who join the call from a computer can also submit questions during the event.  

Cash Advance Program Enhancements

On May 1, Agriculture and Agri-Food Canada (AAFC) an​nounced increased limits for the 2019-20 Advance Payments Program to support farmers facing cash flow challenges in Canada's grains and oilseeds sector.

These changes include increasing the maximum allowable limit available under the APP from $400,000 to $1,000,000, and expanding the program's interest-free component for canola from $100,000 to $500,000 until market conditions stabilize. The interest-free component will remain at $100,000 for all other commodities included under the APP.

The Canadian Canola Growers Association (CCGA) is working with AAFC to update the cash advance system as quickly as possible to accept applications under the new limits.

Click here to read CCGA's news release, re: cash advance program enhancements.
Click here to view FAQ on cash advance program enhancements from AAFC.
Click here for more information on how to apply for a cash advance.

SaskCanola Represents Saskatchewan Canola Farmers

SaskCanola continues to work on behalf of Saskatchewan farmers with the Canola Council of Canada (CCC) and the Canadian Canola Growers Association (CCGA) on the challenges that persist for canola seed exports to China. SaskCanola is a core funder of the CCC and we have one farmer representative on their board of directors. SaskCanola has three farmer representatives on the CCGA board as well.

Reach out to SaskCanola by calling (306) 975-0262 or email

212-111 Research Drive
Saskatoon, SK  S7N 3R2
(306) 975-0262

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