Winnipeg, Manitoba – The Canadian canola industry is disappointed with the support measures announced today by the federal government in response to the closure of the Chinese market to Canadian canola seed, oil, and meal. The announced measures fall short of what is required to support the industry during this unprecedented trade disruption.
“We are discouraged with the government’s support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,” says Chris Davison, Canola Council of Canada (CCC) President & CEO. “We have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.”
“Farmers should not be expected to borrow their way out of this situation," says Rick White, President & CEO of Canadian Canola Growers Association (CCGA). “The Advance Payments Program (APP) is not designed to provide the required support canola farmers need under this situation.”
“The government has also not recognized extensive impacts on the rest of the canola value chain, including exporters and processors who are also facing significant financial impacts as a result of the Chinese market closure. This must be addressed,” says Davison.
While the industry is encouraged there will be some support for biofuel production, the announced Biofuel Production Incentive (BPI) does not go far enough and will not drive meaningful additional domestic demand for canola.
Furthermore, the announced amendments to the Clean Fuel Regulations provide no clarity on disincentivizing fuels made from possibly adulterated foreign used cooking oil (UCO). In 2024, foreign UCO-based fuels represented the equivalent of nearly one million tonnes of domestic canola demand.
“We are calling on the federal government to urgently work with us to provide meaningful and impactful support for the industry as we continue to navigate this trade crisis,” say Davison and White. “The federal government must pursue all avenues to resolve the current trade dispute with China and re-open that market for the Canadian canola industry."