March 24, 2014

China to resume rapeseed imports from Canada's Richardson Intl.

China has agreed several weeks ago to resume imports of rapeseed meal from Canada's Richardson International Ltd, the first from Canada in about a year, a Richardson official said.

Resumption of imports of rapeseed meal and pellets from privately held Richardson was agreed by the Chinese government , said Adrian Man, assistant vice-president of Asia Pacific for the Winnipeg-based company.

China started a new registration process in early 2013 which required approval of each individual Canadian company which intend to export rapeseed products, according to Man.

Rapeseed is crushed for vegetable oil and meal. The meal is used mainly to feed pigs, poultry, cattle and other animals.

Chinese buyers imported 303,000 tonnes of Canadian rapeseed meal in 2012, according to the Canola Council of Canada. The US is by far the largest importer of Canadian rapeseed meal.

Chinese market analyst, JC Intelligence Co, also said in a letter to clients that while China is accepting Canadian rapeseed meal, it would have little impact on the Chinese market in the near term due to high Canadian prices and shipping delays.

Man said that Richardson will not likely move rapeseed meal to China soon due to a delay in transporting crops by rail to port.