China seeks alternative sources of rapeseed for feed after strained relations with Canada

Chinese traders are actively seeking alternative sources of rapeseed due to strained relations with Canada, their primary supplier of this key animal feed ingredient. According to Bloomberg, escalating trade tensions between Beijing and Ottawa could significantly restrict imports of rapeseed and its processed products.

Since March, China has imposed high tariffs on Canadian rapeseed meal in retaliation for Canadian duties on Chinese goods. According to USDA data, in 2024, China imported rapeseed meal from Canada worth $780 million and rapeseed valued at $3.3 billion. Imports of the crop itself are currently under an anti-dumping review that began in September.

To address the shortfall, China has turned to Australia, the world’s second-largest rapeseed exporter, and India, the second-largest supplier of rapeseed meal. Sources indicate that Chinese buyers have initiated talks to procure Australian rapeseed, despite earlier this decade when shipments from Australia ceased due to political disputes and quality concerns. Authorities in both countries must approve the resumption of trade.

Meanwhile, imports of rapeseed meal from India are increasing. Chinese buyers have ordered trial shipments, despite concerns about high levels of foreign material and inconsistent protein content. Indian exporters are eager to regain lost market share, and the local industry is lobbying for relaxed Chinese quality requirements. B.V. Mehta, executive director of the Solvent Extractors’ Association of India, suggests this could boost exports to 500,000 tons annually. 🇮🇳

Indian rapeseed meal prices are significantly lower than in Europe: $202 per ton at the port of Kandla compared to $332 per ton in Hamburg. This creates a strong economic incentive for China to expand cooperation with India. Currently, only three Indian companies export rapeseed meal to China, but the potential for growth is substantial.

This situation reflects broader trade challenges for China, which also faces strained relations with the United States, another key supplier of agricultural products. As Beijing seeks to diversify its feed sources, Canadian farmers, such as those represented by the Agricultural Producers Association of Saskatchewan, face uncertainty due to the loss of a critical market.

Tags: Australia, China, Canada, India, rapeseed