WINNIPEG (Reuters) — China is resuming imports of Canadian canola meal, says an official with Richardson International Ltd.
It will be the first shipments from Canada in about a year.
The Chinese government agreed several weeks ago to resume imports of canola meal and canola meal pellets from Richardson, said Adrian Man, the company’s assistant vice-president for the Asia Pacific region.
China started a new registration process early last year that required approval of each individual Canadian company that wanted to export canola meal and canola meal pellets, Man said.
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He thinks Richardson is the only approved company.
Bunge Ltd., Archer Daniels Midland Co., Cargill Ltd., Viterra and Louis Dreyfus Corp. also produce canola meal in Canada.
ADM and Viterra could not immediately comment and other crushers could not be reached.
“From a trade policy point of view, it’s important (to lift the restriction), and it’s important for the market,” said Man.
Chinese buyers imported 303,000 tonnes of Canadian canola meal in 2012, according to the Canola Council of Canada. The United States is by far the biggest importer of Canadian canola meal.
Chinese market analyst JC Intelligence Co. said in a letter to clients that China is again accepting Canadian canola meal, but it would have little impact on the Chinese market in the near term because of high prices and shipping delays.
Richardson will not likely move canola meal to China soon because of a massive backlog in transporting crops by rail to port, Man said.
The logjam and a large harvest have pushed nearby ICE Canada canola futures down 25 percent from a year ago, although they have partly recovered in the past month.
Access to China may also increase Canadian crush margins, a measure of profitability for crushers who are already benefiting from margins four or five times higher than a year ago.
China continues to restrict imports of Canadian canola seed.
