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Chinese canola tariffs could hit central Alberta producers hard

Chinese levying 100% canola tariff in response to EV tariff
Canola fields are in full bloom in Central Alberta and ready for harvest.
(Advocate file photo)

Hope is usually not the best farming strategy, said central Alberta farmer Mike Ammeter.

But in an ever-changing world that seems to be getting more changeable daily as tariff wars loom, sticking to the plan for this year's planting might be the best option, said Ammeter, who farms between Red Deer and Sylvan Lake.

This time the disruptor is not U.S. President Donald Trump, but China, which has slapped a 100 per cent tariff on canola, canola meal and peas and 25 per cent tariffs on seafood and pork in response to a 100 per cent Canadian tariff on electric vehicle exports and 25 per cent tariffs on steel and aluminum products.

It is not a coincidence that China targeted canola and peas, said Ammeter.  China is Canada's second largest canola customer and top pea customer.

"It's a strategic play on their part."

Having tariffs on canola and peas, two of the region's largest crops complicates local growing plans.

"In this part of the world, we don't have too many options on crops to grow," he added. "We've got a month, a month and a half until spring, so what am I going to seed?"

If farmers concerned that tariffs will kill canola and pea prices, switch to wheat, barley or pulse crops, markets might be glutted and prices could fall as supply-and-demand economics kicks in.

"It's a hard one. Some guys will probably adjust their rotations a bit. But the other part of it is we're still five months from harvest. So, if you stick with your plan the world can change 10 times by the time we get to harvest.

"Do you adjust your plans today knowing full well it could change in a day, a week or a month, and change multiple times? It's just so unpredictable."

Ammeter was at a recent marketing seminar just after word of the tariffs came down. 'We were chatting about this and I was in a room full of farmers and we were all kind of in the same boat. 'I don't what to do? What's the right thing to do?'"

Canola producers have seen this before. China slapped tariffs on canola in 2019 after Canada detained Huawei executive Meng on a warrant from the U.S.

"This is the same movie all over again," said Ammeter.

China's latest trade move that kicked in March 20 had an immediate impact on canola prices, which dropped immediately.

"Coming out of our pockets is what it is," said Ammeter.

Canola Council of Canada president and CEO Chris Davison said the tariffs will have a "devastating impact" on Canada's canola growers and urged the federal government to engage with China to resolve the issue quickly.

China is the second largest market for canola seed, oil and meal with Canadian exports close to $5 billion a year.

Canadian Canola Growers Association president and CEO Rick White also raised the alarm.

香蕉视频直播淲ith this announcement Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,香蕉视频直播 said White.

香蕉视频直播淭he impact of the federal government香蕉视频直播檚 trade policy decisions is now playing out at the farm gate, making it imperative that government respond with a plan for financial compensation commensurate with the losses incurred.香蕉视频直播

 



Paul Cowley

About the Author: Paul Cowley

Paul grew up in Brampton, Ont. and began his journalism career in 1990 at the Alaska Highway News in Fort. St. John, B.C.
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