Russia risks losing the Chinese rapeseed oil market over GM concerns

Russia’s rapeseed oil exports to China have come under pressure after Chinese customs authorities detected genetically modified (GM) markers in several shipments. As a result, Beijing imposed phytosanitary restrictions on a number of Russian processing plants, threatening exports of one of Russia’s key oilseed products.

China first raised concerns in February, and since then the number of Russian plants affected by the restrictions has increased to 23. Another 35 facilities could be removed from the CIFER registration system, which is required to export food products to China. Russian authorities argue that some laboratory tests may have produced false-positive results, but the Chinese restrictions remain in place.

Russia’s Oil and Fat Union believes the problem stems from illegal imports of genetically modified (GM) rapeseed from other Eurasian Economic Union (EAEU) countries. According to the industry, such raw materials may be mixed with domestic rapeseed during processing, creating risks for the entire export supply chain. In response, processors have tightened laboratory testing, while Russia’s veterinary and phytosanitary authority has strengthened certification requirements.

The restrictions pose a serious challenge for Russian exporters, as China remains the country’s largest buyer of rapeseed oil. During the first months of the year, China imported 855 thsd tons of Russian rapeseed oil worth $985 million, up 31% in volume and 44% in value compared with the same period last year.

If China expands or maintains these restrictions, Russian processors could lose a significant share of one of their most profitable export markets. This would add further pressure to an industry already facing logistical disruptions and growing trade barriers.

Tags: GM, Russia, China, rapeseed oil