Prairie canola growers differ on Chinese market loss compensation

SASKATOON — Alberta’s canola growers are seeking compensation for the temporary loss of the Chinese market, while growers in the other two Prairie provinces are not.

Alberta Canola sent a letter to federal agriculture minister Heath MacDonald and finance minister Francois-Philippe Champagne asking for compensation for federal trade actions that led to China’s retaliatory tariffs.

They claim Canada’s tariffs on Chinese electric vehicles, steel and aluminum prompted the disruption of the Chinese market for Canadian canola.

China imposed a 100 per cent duty on Canadian canola oil and meal on March 20, 2025. That was followed by an anti-dumping duty of 75.8 per cent on canola seed as of August 14, 2025.

The 100 per cent tariff on meal was subsequently removed effective March 1, 2026 until at least the end of the calendar year.

The anti-dumping duty was reduced to 5.9 per cent effective March 1, 2026, for a period of five years. It is being added to the pre-existing nine per cent most favoured nation duty, resulting in total duties of 14.9 per cent on imports of canola seed into China.

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Canola oil continues to be subject to a 100 per cent import tariff in that market.

Karla Bergstrom, executive director of Alberta Canola, said LeftField Commodity Research estimates that the brief trade spat with China cost Canada’s canola sector between $1 billion and $4 billion.

Her organization is in negotiations with the federal government about what a targeted compensation program might look like.

“We’re not coming in with a prescription,” said Bergstrom.

Any direct payment resulting from those negotiations would go to Alberta’s growers because they are the ones asking for the compensation.

Tracy Broughton, executive director of Saskatchewan Oilseeds, said her board of directors decided against seeking direct compensation from Ottawa.

They worry that any ad hoc payment could trigger countervailing duties from the United States or other trade partners.

“That’s why it’s so important to have a strong business risk management suite to avoid ad hoc risks,” she said.

That is especially true in today’s topsy-turvy geopolitical environment.

Broughton said the AgriStability program is supposed to provide revenue stability when there is a trade war or inclement weather, but the participation rate in the program is poor.

“It’s not simple to understand and is ultimately frustrating to users,” she said.

“The government has room for improvement on how they communicate the benefits of AgriStability to encourage more participation.”

Manitoba Canola Growers is also not seeking compensation from Ottawa.

“When we consulted our members, their top priority was expanding domestic demand for canola, alongside efforts to diversify and strengthen market opportunities both at home and abroad,” board chair Jason Kehler said in an email.

The organization’s focus remains on policies and investments that support long-term market growth and create stable demand for Canadian canola.

“We recognize that other provincial organizations may be taking a different approach based on the priorities of their members, and we fully respect their decision to advocate on their members’ behalf,” he said.

Bergstrom brushed off the concern that was raised about an ad hoc payment potentially triggering countervailing duties in the U.S. or other markets.

“There’s going to be risk in action, and there’s going to be risk in inaction,” she said.

Her board of directors felt strongly that they had to go on record with a formal request for compensation due to the extraordinary market disruption and losses caused by losing the Chinese market.

“This is what we heard in our fall meetings, and we answer to Alberta canola growers,” said Bergstrom.

But her directors also expressed gratitude for the federal government’s ongoing efforts to re-engage with China and restore stable trade relations with that country.

Bergstrom said Alberta Canola will continue to work with the other two provincial organizations and national groups on issues of mutual concern, like pushing for improvements to business risk management programs and a thriving domestic market for biofuels.