| WINNIPEG, Manitoba, March 21
WINNIPEG, Manitoba, March 21 China has agreed to
resume imports of Canadian canola meal from Richardson
International Ltd, the first from Canada in about a year, a
Richardson official said on Friday.
The Chinese government agreed several weeks ago to resume
imports of canola meal and canola meal pellets from privately
held Richardson, said Adrian Man, assistant vice-president of
Asia Pacific for the Winnipeg-based company.
China started a new registration process in early 2013 that
required approval of each individual Canadian company that
wanted to export canola meal and canola meal pellets, Man said,
adding he thinks Richardson is the only approved company so far.
Bunge Ltd, Archer Daniels Midland Co, Cargill
Ltd, Viterra and Louis Dreyfus Corp
also produce canola meal in Canada.
ADM and Viterra could not immediately comment and other
crushers could not be reached.
"Any time that you have a restriction to import, it's
affected the market," Man said. "From a trade policy point of
view, it's important (to lift the restriction), and it's
important for the market."
Canola, an oilseed, is crushed for vegetable oil and meal.
The meal is used mainly to feed pigs, poultry, cattle and other
Chinese buyers imported 303,000 tonnes of Canadian canola
meal in 2012, according to the Canola Council of Canada. The
United States is by far the biggest importer of Canadian canola
Chinese market analyst, JC Intelligence Co also said in a
letter to clients, seen by Reuters that China is again accepting
Canadian canola meal, but it would have little impact on the
Chinese market in the near term because of high Canadian prices
and shipping delays.
Richardson will not likely move canola meal to China soon
because of a massive backlog in transporting crops by rail to
port, Man said.
The logjam and a huge harvest have pushed nearby ICE Canada
canola futures down about 25 percent from a year ago,
although they have partly recovered in the past month. Access to
China may also top up Canadian crush margins, a measure of
profitability for crushers, who are already benefiting from
margins four or five times higher than a year ago.
China continues to restrict imports of Canadian canola seed
with the common fungal disease blackleg to crushing plants that
are situated away from China's main growing areas of rapeseed, a
close cousin of canola.
(Additional reporting by Christine Stebbins in Chicago; Editing
by Sofina Mirza-Reid)