Government supports grains and oilseeds exports around the world
July 15, 2019
By Top Crop Manager
The Government of Canada will invest more than $13 million for a variety of projects that will help to strengthen, diversify and grow Canada’s grains and oilseeds exports.
These investments will help Canada’s agricultural and agri-food exporters in their efforts to diversify markets. The investments will allow country to take full advantage of new opportunities created through the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
With CETA’s provisional application, almost 94 per cent of the EU agricultural tariff lines are now duty-free, including tariff lines for Canadian cereal preparations and processed pulse products. The CPTPP, which went into effect Dec. 30, 2018, helped to eliminate or reduce tariffs on a wide range of Canadian agricultural exports such as beef, pork, grains, pulses, and a variety of agri-food products. Combined with Canada’s other free trade agreements, Canadian farmers and producers will have preferential market access to an estimated 1.5 billion consumers in more than 50 countries. This newly announced funding will help the sector to strengthen its market access and development strategies, enhance promotional efforts, and gain a deeper understanding of the growing demands for new and existing markets.
Various members from across the industry welcomed the announcement.
“Today’s announcement to invest in getting the most for canola exports helps to maintain the foundation of our industry. This joint industry and government investment will support our efforts to maintain and grow our access to international markets, as well as building the reputation of canola around the world,” said Jim Everson, president of the Canola Council of Canada, in a released statement. “With more than 90 per cent of our canola exported as seed, oil or meal, getting the most from international markets drives our industry.”
Cam Dahl, president of Cereals Canada, spoke to how the funding allows Cereals Canada to continue its marketing initiatives such as the Keep it Clean program, the annual Team Canada – Wheat new crop missions, and assist with opening up new market opportunities for the Canadian Prairie Spring and Winter Wheat classes.
Members of the industry also stressed the importance of Canada diversifying its exports, especially given the current state of international trade. Jenneth Johanson, president of the Prairie Oat Growers Association, said the funding will help increase oat exports to Mexico and China allowing the country to reduce its reliance on the United States. Currently over 85 per cent of Canadian oat exports go to the U.S.. “The U.S.A is a great market for our oats but diversification is key to reducing reliance on one market and increasing stability for our producers. Since funding to increase Canadian oat exports to Mexico began in 2015 Canada has been able to more than double their Mexican oat exports,” said Johanson in a released statement.
“The Canadian pulse and special crops industry is heavily reliant on export markets and challenges in even one or two countries can have a massive impact on growers and the trade,” added Quinton Stewart, president of the Canadian Special Crops Association. “Through the partnership between the Canadian Special Crops Association and Agriculture and Agri-Food Canada, we can ensure that we’re proactively addressing issues before they result in a market closure, and minimizing the impact they’ll have on growers and trade.”
The projects are funded through the Canadian Agricultural Partnership’s AgriMarketing Program, which helps industry increase and diversify exports to international markets and seize market opportunities. The program supports industry-led promotional activities that differentiate Canadian products and producers, and leverage Canada’s reputation for high quality and safe food.