Canola processors are starting to feel the effects of an ongoing dispute surrounding canola meal exports to the United States, say industry officials.
Four or five of Canada’s 10 canola crushing plants are on an “import alert” list maintained by the U.S. Food and Drug Administration, due to salmonella contamination.
The issue arose in the fall of 2008, when a shipment from Cargill’s plant at Clavet, Sask., was identified by the FDA as contaminated.
Then, plants operated by Bunge Canada in Ontario and Saskatchewan, Associated Proteins (since bought by Viterra) in Manitoba and Leblanc and Lafrance in Quebec, have been subject to an import alert.
That alert signals FDA inspectors that there is enough evidence to refuse admission of a product into the U.S. without physical inspection.
Dave Hickling, vice-president for canola utilization with the Canola Council of Canada, said while canola meal continues to move into the U.S. from unaffected plants, the closure is beginning to have a significant impact.
“Canola crush numbers are still fairly strong so it’s not a total collapse by any means,” he said. “But certainly it’s being impacted, no question.”
More than 95 percent of Canada’s exports of canola meal go to the U.S.
Export statistics show a big drop in shipments to the U.S. in May 2009, around the time the FDA began putting plants on the import alert list.
No information has been provided on key questions such as how canola meal was stopped at the border, what happened to the shipments, how the contamination occurred, the level of contamination or what is being done to remedy the situation.
