Saskatchewan’s canola industry has traditionally relied heavily on exports to China and the United States, with over 83% of the province’s canola exports directed to these markets in the past year, as reported by the Canola Council of Canada. However, due to steep tariffs imposed by China and ongoing trade uncertainties with the United States, the Saskatchewan government is actively seeking to broaden its canola export markets.
Warren Kaeding, Saskatchewan’s Minister of Trade and Export Development, expressed urgency in supporting local canola growers amidst the challenging trade landscape. Statistics Canada data reveals a substantial decline in Saskatchewan’s exports to China following the imposition of significant tariffs on Canadian canola seed in recent months.
Kaeding emphasized the importance of diversifying trade partnerships to mitigate risks and highlighted the interconnectedness of various Canadian industries affected by trade decisions. As harvest season progresses for Saskatchewan canola producers, there are mixed feelings among farmers, with concerns about pricing uncertainties and market access looming large.
Tracy Broughton, Executive Director of Sask Oilseeds, stressed the need for resolving trade issues promptly and advocated for expanding trade relationships beyond traditional markets like China and the U.S. She suggested exploring trade opportunities in other Asian countries to reduce reliance on specific markets.
Murad Al-Katib, CEO of AGT Foods, echoed the sentiment of diversifying trade and emphasized the necessity for Canada to explore emerging markets for sustained growth. He highlighted the significance of recognizing and tapping into new trade opportunities to ensure long-term economic stability.
Kaeding’s recent trade mission to Southeast Asia, specifically Indonesia, Malaysia, and Thailand, aimed at fostering trade relations and assessing market potential for Saskatchewan’s canola products. He identified Southeast Asia as a strategic region for diversifying canola trade, citing existing strong trade ties and successful canola sales in the ASEAN region.
Looking ahead, Kaeding emphasized the importance of exploring new markets for canola meal, particularly in the ASEAN region’s dairy sector. He noted that while current U.S. tariffs do not apply to Canadian canola products under the Canada-United States-Mexico Agreement, exploring new markets remains crucial for the industry’s growth and sustainability.
