China's Canola Potential | Global AgInvesting

China’s Canola Potential

China’s Canola Potential

Opportunities for canola growers in Western Australia will become greater after China lifted a ban on imports of Australian canola in May.  Since the ban was lifted, 500,000 tons of canola has shipped from Australia to China at a value of $326 million.  Three years ago China placed a ban on Australian canola because of concern over blackleg fungus found in Australian shipments in 2011.  The resumption of trade is contingent upon shipments only being received in Chinese ports that are remote from China’s canola growing regions and not originating from the ports of Wallaroo, Port Adelaide, or Albany in Australia.  Last year Australia produced a record canola crop of 4.2 million tons and this year estimates are for a crop of between 3.2 million and 3.5 million metric tons. Experts believe that within five years China will be Australia’s largest canola market beating out the EU.  Testing is underway to get clearance for canola shipments from the three excluded Australian ports.

 

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