Canadian government and canola industry invest in China
By Canada Council
April 15, 2010, Winnipeg – A $1.5 million investment by the Canadian government, combined with funding from the canola industry, will help ensure that Canadian canola seed exports remain strong in China.
By Canada Council
April 15, 2010, Winnipeg – A $1.5 million investment by the Canadian government, combined with funding from the canola industry, will help ensure that Canadian canola seed exports remain strong in China. In 2008/09, China imported 2.87 million tonnes of canola seed worth $1.3 billion.
In order to maintain access to the Chinese market, up to $1 million has been earmarked to address concerns over blackleg, a fungal disease in canola seed. Last year, China limited Canadian canola seed imports due to concern about blackleg. As a result, Canada will undertake cooperative studies with China to analyze ways to mitigate the transfer of blackleg to China’s crop. The canola industry will also look at blackleg presence in Canada to determine a risk reduction strategy.
"The combined approach by the industry and government, with both Agriculture Minister Gerry Ritz and myself in China, has been essential to working with the Chinese government to resolve the blackleg issue," said Canola Council of Canada President JoAnne Buth. "With our research investments, we are confident that we will be able to adequately address China’s concern, resulting in an even stronger trade relationship."
The Canadian government and Canola Council of Canada have allocated an additional $500,000 for dairy feed trials in China to increase the value of canola meal there. With increased dairy production in China, access to high quality animal feed is critical. Canola meal, produced when oil is extracted from canola seed, is a nutritious, high-value protein component of feed for dairy cattle. Feeding trials in dairy cattle have shown that canola meal can increase milk production by an average of 1 liter per cow per day compared to soybean meal. The new feed trials will show the value of canola meal in China, leading to higher canola prices that benefit Canadian farmers.
"The increased use of canola meal in the Chinese dairy industry will result in greater value for Canadian canola," Buth noted. "This could deliver an additional $70 million to Canadian canola growers."
"Canadian canola seed produces one of the healthiest oils in the world for humans and some of the best meal for animal feed," she continued. "We look forward to exporting more canola to China and enhancing both countries’ futures."
All funding for the canola industry’s work in China is part of the Canola Council of Canada’s Canola Market Access Plan announced in January 2010. This program is funded through Agriculture Canada’s Agri-Flexibility Fund.
Contact: Robert Hunter