The Canola Council of Canada says canola oil and meal sales are still being executed in China, but a former federal agriculture minister says otherwise.
Gerry Ritz has spoken to an official with one of Canada’s major crushers who told him they can’t unload a tanker full of oil.
“A boatload of oil arrived at the dock to be unloaded and samples were taken and they were told, ‘go back out and anchor and we’ll call you when we’re done,’ ” he said.
“That was a couple of weeks ago.”
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The exporter is paying $30,000 a day in demurrage fees, according to Ritz.
“We used to call this the Korean inspection. They hold everything at the dock until it’s worthless and then say, ‘OK, it’s good,’ ” said Ritz.
Brian Innes, president of the Canadian Agri-Food Trade Alliance and vice-president of public affairs with the Canola Council of Canada, could not confirm Ritz’s report.
“In terms of oil and meal, to our knowledge all business to China continues to be executed,” he said in an email.
Ritz said China’s delaying tactics are retribution for Canada detaining Huawei executive Meng Wanzhou.
“It’s pure politics. There is no doubt about it,” he said.
“I mean, there are no pests in oil that they could claim.”
China has already pulled the canola seed export licenses for Richardson and Viterra and is not accepting seed from any other Canadian exporter.
Ritz said basis levels will be hurt now that oil is backing up in the system as well as seed.
Contact sean.pratt@producer.com
