Tridge summary
Canada's canola export market is facing increased competition from Australia, particularly in key markets like Mexico and Japan, where Australian canola is selling at significant discounts. This competition has led to a decrease in Canadian canola exports, although Canada still holds a competitive edge in the Chinese market due to phytosanitary regulations. Domestically, demand for canola in Canada is expected to rise with the commissioning of new processing plants, shifting focus from seed exports to increased canola meal production for the Chinese market. Additionally, the article highlights the competitive advantage of Australian canola's higher oil content over Canadian canola, which has seen a decrease in oil content as breeders focus on increasing protein. The Canola Council of Canada is exploring ways to balance oil and protein content to enhance competitiveness. The 2024 growing season poses challenges for Canadian growers, including below-normal soil moisture levels and potential drought risks, emphasizing the need for careful management of fertilizer use and pest pressures to mitigate yield reductions.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
Canada is facing stiff competition from Australia in many canola export markets. “They’re here to stay,” Jarrett Beatty, an exporter with Parrish & Heimbecker, said during the Canola Council of Canada’s Canola Utilization Forum. “Unless they have an environmental issue, they’re going to continue to be a bit of a thorn in our side in terms of capturing market share.” The country is expected to export 4.4 million tonnes of the commodity this year, down from 5.87 million tonnes last year and 5.91 million tonnes the year before that. Those figures are about double the volume it used to ship out annually. Beatty said Australian canola is selling at a $50 to $60 per tonne discount in markets such as Mexico and Japan. The discount was as high as $100 per tonne last year when Australian growers harvested an eye-popping 8.27 million tonnes of the crop. “The fact that Japan took any seed from Canada (that year) is a testament to their loyalty and their love of our product,” he said. ...
Source: UkrAgroConsult
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