BEIJING, China — Canada’s grain delivery problems haven’t gone unnoticed in China.
The issue of timely supply was raised privately in conversations with both the ministry of agriculture and CEROILS, China’s state grain buying agency, federal agriculture minister Ralph Goodale said during a trade mission to southeast Asia.
Chinese officials seemed to accept that a number of factors have combined to put Canada’s delivery schedule in disarray — an unusually cold winter that discouraged farmers from delivering in January and February, a shortage of rail cars, unusual snow in the Rockies and the work stoppage at West Coast ports in February.
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China is more concerned about the Canada’s poor deliveries because the nature of its market has changed, Goodale said.
“China has become a time-sensitive market. They used to buy in large, long-term bulk grain transactions … but that’s not the way this market functions any more. They want specific quantities at specific times.”
Gordon Machej, commissioner with the Canadian Wheat Board, said there are 25 ships waiting to be loaded at West Coast ports, three of which are Chinese.
CEROILS is having trouble booking Chinese ships destined for Canadian ports. Even after being compensated with demurrage costs in Canada, the captains don’t want to waste time there.
Delivery problems
Goodale said there will be problems in China if Canada continues to have delivery problems.
Dwight More, president of the Canola Council of Canada, said it is unacceptable for Canada not to be able to deliver grain to its markets.
“It’s a characteristic of an under-developed country to have the product but not be able to get it to port.”
More said some Japanese canola crushers have slowed down their crush because they haven’t been able to get product when they need it. Some may have to look at shutdowns.
Canada’s delivery problems have made the Japanese more aware of the dangers of depending on Canada. More said the Japanese are considering Australia as a long-term alternative market and have explored the possibility of buying from Argen-tina to fill supplies over the summer. More said: “If things don’t change, then yes, we’ll lose market share.”
