Australia resumes canola shipments to China after a five-year hiatus

Australia is set to ship canola to China for the first time in five years, with a vessel carrying a trial cargo of the oilseed expected to depart for Qingdao in less than a week, Bloomberg reports.

According to a loading schedule from exporter CBH Grain Pty Ltd., the bulk carrier Armonia A is scheduled to dock in Esperance, Western Australia, on Wednesday, where it will load approximately 60,000 tonnes of canola.

The vessel will then head to the port of Qingdao in northeastern China, according to a cargo manifest on the Southern Ports website. The vessel is scheduled to depart Australia on Friday or Saturday.

In the last quarter of this year, China placed orders for at least three trial cargoes of oilseeds, marking a resumption of imports from Australia after a hiatus that began in 2020 due to restrictions related to phytosanitary concerns. Currently, according to the Australian Department of Agriculture’s website, canola shipments are being tested for undesirable contaminants, such as “non-seed material,” in amounts not exceeding 1%.

This testing follows tensions in relations between China and Canada, the largest supplier of oilseeds. Prior to the dispute, virtually all of China’s canola imports—approximately 6.39 million tonnes in 2024—were Canadian products.

According to a spokesperson for the Australian Department of Agriculture, the country’s authorities are “actively discussing opportunities to optimize trade relations in the agricultural sector with all interested parties, including China.”

Pat O’Shannassy, ​​head of Grain Trade Australia, which represents grain exporters, emphasized the importance of the successful completion of the tests. “However, one should not rush to conclusions,” he noted. “Currently, the trial is ongoing and must meet the established criteria.”

Tags: Australia, China, rapeseed