Canola producers forgotten in ongoing trade war: MLA Hunter

By Trevor Busch
Taber Times
editor@tabertimes.com

As a global trade war escalates between twin superpowers that have locked horns, canola producers in Canada are bearing the brunt of China’s imposition of 100 per cent tariffs on canola oil and meal.

Imposed by China in March in retaliation against Canada’s duties on electric vehicles, aluminum and steel, canola producers are being squeezed amidst tariff rhetoric and reality, and the outlook isn’t positive for the industry in early 2025 with the growing season now underway.

Taber-Warner MLA Grant Hunter lays the blame for this development squarely at the door of Ottawa, while advocating for the federal government to immediately drop its various tariffs against China and support canola producers.

“One hundred per cent I think they should drop it. Farmers aren’t happy about that canola tariff – I did a member statement in the house, canola is that great crop that has great margins. And we have a lot of farmers that grow that crop, and it’s sad that the second largest consumer of that product is China and they’re doing this not because they don’t want the product, but because of a foolish decision from Ottawa.”

Canada exports 90 per cent of its canola production, however the fly in that ointment is most of that production is exported to the U.S and China who are currently battling for trade dominance on the world stage. Canadian producers have largely been caught in the middle. 

“And you know what? Ottawa doesn’t care,” said Hunter. “The reality is that in Ontario and the East, they don’t grow that stuff. So they’re not being hit by it. It’s the West that gets stuck with a bad decision made from Ottawa.”

Roughly $5 billion in canola products are exported annually to China, of which about $918 million is canola meal, a high-protein animal feed which is also subject to the tariff. The U.S. still dominates as Canada’s top canola export market with about $7.7 billion flowing south in 2024. 

Recent regulatory changes in the U.S. to the Critical Fuels Production Credit are also having an impact on the Canadian biofuels industry, which sources much of its feedstock from canola, making Canadian production less competitive than its U.S. counterparts which is having a chilling effect on business confidence across the industry.

The federal government’s recent increases to the AgriStability program are being viewed as a drop in the bucket by many producers while Ottawa prioritizes protectionism for the fledgling EV industry in Ontario, arguably at the expense of Canadian farmers on the world stage.

Roughly 40,000 producers are involved in growing canola across Canada.