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Sales of Canadian Canola Meal to China Soar to Five-Year High

A trade dispute between Canada and China over canola seed that lasted most of this year has resulted in a boost to Canada’s canola meal sales.

After shipping zero canola meal to China last year, between January and August of this year Canada shipped 415,000 tons of meal worth $132.1 million to the country – the highest volume since 2011, according to the Canadian Oilseed Processors Association (COPA).

This strong demand has increased prices and profits for farmers while crushers are seeing crush margins that are double what they were at this time last year.

Additionally, this demand from China for canola meal could be sustained if duties that Beijing placed on imports of U.S. distillers’ dried grains (DDGS) remain in place, while China’s burgeoning aquaculture industry, which isn’t under as much environmental pressure as the country’s hog farming sector, could continue to drive demand as well.

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