Trade mission to China reinforces lucrative Asian markets

Reading Time: 2 minutes

Published: February 3, 2000

Organizers of a Saskatoon farm rally say Ralph Goodale was one of the absentee politicians who should have been there.

But Goodale was halfway around the world heading a 13-day trade mission to China, South Korea and Japan for the natural resources department and snuffing out rumors about Canadian wheat being infected by disease.

Goodale met with government and business officials in Beijing and Shanghai to reinforce the strong relationship between China and Canada in sales of wheat and barley.

“Because of that long-standing relationship, China looks to Canada first for its wheat supplies. That’s why we have the lion’s share of the market,” said Goodale during a phone interview from South Korea.

Read Also

Rain water comes out of a downspout on a house with a white truck and a field of wheat in the background.

August rain welcome, but offered limited relief

Increased precipitation in August aids farmers prior to harvest in southern prairies of Canada.

He said China is the world’s largest wheat producer and each year it imports less wheat, but the country’s 1.3 billion citizens still demand more than they can grow.

“The shortfall is primarily high quality milling wheat and that is exactly what we produce,” said Goodale.

He said the purpose of the trip is not to sign deals, but to nurture the relationship between China and Canada. Goodale said one thing the Chinese look for in a trading partner is personal contact at senior levels.

While the delegation was in China, a rumor arose that Canadian wheat was infected with TCK, a smut disease that makes Chinese importers nervous.

It’s not the first time these allegations have surfaced. In the past, they originated from comments made by American trade and agriculture officials. Goodale surmises that’s also how this unfounded rumor got started. He said it was fortunate that he happened to be in China when it came up.

“It was important to be right on top of that and nip the allegation in the bud,” said Goodale.

He also spent time in Beijing to enlist China’s help in Canada’s ongoing subsidy battle with the Americans and the Europeans. With China poised to become a member of the World Trade Organization, it is important to get the Canadian perspective across, said Goodale.

In South Korea, his discussion with the Korean Flour Millers’ Association reaffirmed the need for Canada to develop a variety of wheat that can be used to produce Asian noodles.

He said the board’s share of the South Korean bread flour market hovers around five percent, but there is a huge potential in the noodle market if Canada can develop a wheat that is whiter, harder and drier.

South Korean authorities announced they will buy another 13,000 tonnes of Canadian wheat. That is the only grain-related deal to come out of the mission, but Goodale had yet to meet with the Japanese Food Agency in Tokyo. Not everybody is pleased with Goodale’s trip.

Wayne Bacon, vice-president of the Canadian Canola Growers Association, said the mission should have included at least one representative from the canola industry.

“I think he should be representing all grains, not just the Canadian Wheat Board,” said Bacon.

He said Canada exported six times as much canola to China last crop year than wheat or barley. Canola exports topped 1.2 million tonnes in 1998-99 compared to the 220,000 tonnes of Canadian wheat that was sold into the Chinese market.

However Canadian wheat exports to China have averaged 3.5 million tonnes over the last 10 years.

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

explore

Stories from our other publications