Canola farmers concerned as stricter Chinese import regulations set to begin
CALGARY — The head of a national group that represents canola farmers says they’re concerned that China’s plan to impose stricter import regulations on the crop this week will put them at a competitive disadvantage and clog Canada’s grain terminals.
China says it will allow canola shipments containing no more than one per cent of waste product starting Thursday, compared with the 2.5 per cent allowance today. The waste, known as dockage, includes parts of the canola plant other than seeds, as well as weeds and other crops.
Those tougher restrictions coming from Canada’s largest canola buyer will mean grain traders will have to pass on the higher costs of processing to farmers, said Rick White, CEO of the Canadian Canola Growers Association.
“Those higher physical costs of cleaning down to that level … will be passed back through the industry and farmers will certainly be picking up their share,” White said Monday.