Vietnamese feed producers buy Canadian canola meal after Chinese tariffs

Vietnamese feed producers have imported about 30,000 tonnes of Canadian canola meal per month over the past few months, after China, a traditional buyer of Canadian canola products, restricted imports by imposing anti-dumping duties earlier this year, Reuters reported, citing international traders.

These purchases demonstrate how trade tensions are disrupting global commodity flows. Vietnam typically imports soybean meal, rather than canola meal, for animal feed, but the price drop following China’s tariffs on Canadian imports has made canola meal much more attractive, displacing soybean products in its traditional market.

According to traders, Vietnamese feed producers were paying $220 per tonne, including costs and shipping, for Canadian canola, while Chinese buyers were paying around $300-310 per tonne before the tariffs were imposed in March.

“The volumes are small compared to what China was buying, but supplies are going to Vietnam,” said one Singaporean trader, though sellers expect new deals in the coming months.

Earlier, it was reported that up to 400,000 tonnes of Canadian rapeseed meal were stuck in Chinese warehouses after Beijing imposed the tariffs. Sellers noted at the time that they intended to offer buyers a discount of around 30%.

Tags: compound feed, rapeseed meal, Vietnam, Canada