Canada: Creating agriculture trade opportunities with China

“China is an important market for Canadian farmers and by working together with Chinese producers and processors we can open new windows of opportunity in both countries,” said Minister Ritz. “Strengthening the Canada-China agricultural trade relationship with these agreements is the result of the strong trade relationship we have built with our Chinese partners over many years.”

 

For the first time in almost a decade, Canadian processors can immediately resume exports of bovine tallow for industrial use to China. An agreement on export conditions has cleared the way for Canadian tallow access to a market expected to be worth $50 million annually according to the Canadian Renderers Association. This announcement is the result of the breakthrough Cooperative Arrangement signed during the visit of President Hu to Canada in 2010 when it was agreed to allow staged market access for beef and beef products.

 

China has also agreed to certify additional Canadian plants to export beef, begin technical discussions on expanding beef access, create a joint technical working group to move forward a Canada-China Cooperation Dairy Farm Pilot Project and discuss technical export conditions for Canadian dairy cattle. Canada continues to work with the beef industry and China to expand market access, based on sound science, for all Canadian beef and beef products.

 

China is a top importer of Canadian canola and this demand continues to grow. Minister Ritz was pleased to announce earlier this week a new commitment by Tongwei Co. Ltd., a major Chinese feed company, to increase its purchase of Canadian canola meal by up to $240 million annually by 2015. Tongwei believes its imports of Canadian canola could rise to $900 million over the next decade. Major increases in market demand, such as this, demonstrate the need to ensure long-term trade stability for Canadian canola exporters to China. A new Memorandum of Understanding between Canada and China that will support research aimed at more effectively mitigating the risks associated with blackleg was also signed. In 2010, $1.8 billion worth of canola was exported to China.

 

Minister Ritz was also pleased to oversee the signing of a new contract for Canadian swine genetics worth $1.6 million. Genesus Inc., one of the top swine breeding companies in the world, signed a contract with Best Genetics for 1000 swine. This commercial agreement was one of 23 that all together totaled close to $3 billion.

 

The Government of Canada is determined to grow and strengthen its strong trade relationship with China for agriculture products such as beef, canola, pork, grain, pulses and genetics. China is an important market for Canadian producers with 2010 agricultural exports valued at $2.6 billion.