MOUNTAIN VIEW COUNTY - New Chinese tariffs on Canada canola seed probably won’t result in area producers losing their farms, but it’s still anything but good news, says Jeff Frost, the Region 8 director for Alberta Canola Producers Commission (ACPC).
“I don’t think farms are in danger due to this one situation,” Frost told the Albertan. “It’s not great, but it is not an emergency where farmers are going to go under. It is mainly going to affect cash flow and financials.
“Even with these tariffs the global market is going to obviously decrease a little bit. When you take away that much demand, price is going to fall.”
The region the Olds-area farmer represents on the commission includes Wheatland County, Mountain View County, Municipal District of Bighorn, Foothills County, Rocky View County, Kneehill County, Improvement District No. 9 (Banff), and nearby urban centres.
China’s 75.9 per cent tariff on Canadian canola seed came into effect on August. 14. There was already a 100 per cent tariff imposed by China on canola meal and oil in place.
“One hundred per cent it is going to affect us,” he said. “It is having a negative effect on the markets and it is never good when you are fighting with your first and second largest customers. China just happens to be the second biggest for the total oil seed and meal and they are the largest customer for the seed.
“This tariff now is essentially going to stop the flow of canola seed into China. The Chinese won’t be buying it with this tariff on top of it; it’s just uneconomic.”
China is Canada’s second largest market for canola and canola products with exports to China valued at $4.9 billion in 2024.
Producer organizations, including the ACPC, are calling for a political solution to the situation, he said.
“We are lobbying the federal government to get this top of mind right now,” he said. “There are over 40,000 canola growers across Canada and all of us are affected due to this. It’s one hundred per cent political right now and so the only way it can get fixed is by a political answer.
“We are hoping the trade patterns will shift and other people will step up to plate in the global market, but it’s tough to say where it’s going to go at this point. I can’t say either way if this is going to be settled or not, if this is a short-term or a long-term situation.”
Asked if farmers can store the seed until the tariffs are lifted, Frost said, “As long as it is put in the bin in good condition you can store it for quite awhile, but the concern is cash flow. Most people want to sell a little bit throughout the year to keep the cash flow going and plan for next year, but if you are sitting on it the whole time not everyone has the financial capabilities to do that.”
The opening of a new renewable diesel plant near Edmonton is some good news for Alberta producers, he said.
“The plan is taking canola seed oil and turning it into biodiesel, renewable diesel. That just came line this year and it’s going to take a big whack of our canola production. So that’s a positive,” said Frost.
The ACPC is a not-for-profit organization representing more than 12,000 canola farmers that “supports the long-term success of canola farmers in Alberta through research, extension, consumer engagement, and advocacy.”