Southeast producers are feeling the effects of a 75 per cent provisional tariff on Canadian canola seed imposed by China. The tariff, effective since August 14th, will have far-reaching impacts outside of the agriculture industry as well, as Executive Director for the Weyburn Chamber of Commerce, Monica Osborn, says it's a direct hit to Weyburn’s economy and the livelihood of local producers.
“It marks the most significant disruption to our export market since 2019, and for Weyburn and our surrounding communities, the impact is immediate and deeply personal.”
Osborn outlines the role that Weyburn producers play in Canada’s canola story, explaining that the city sits in the heart of Saskatchewan's canola belt. Thousands of acres of canola are planted across the RM and surrounding areas.
“Local producers and growers contribute to 12.1 million acres planted province-wide and the 9.7 million tons harvested this year. Canola supports about 55,000 direct jobs in Saskatchewan, many of them right here in Weyburn, from farm families to processing and transportation.”
With the seed so central to the local economy, Osborn says the announcement saw immediate impacts, dropping future prices to $30.50 per ton and erasing $610 million in value for Western Canadian farmers in a single day. Now, if exports fall by only 20 per cent, the industry could see losses up to $1 billion.
“That blow would ripple through Weyburn's ag supply chain. A full ban could cost up to 38,000 jobs directly related in Saskatchewan, and Weyburn would feel that pain acutely. We have local businesses in the agribusiness that would definitely be impacted by that.”
Ninety percent of Canadian canola is exported with China standing as our second largest buyer, accounting for roughly one third of total exports. Osborn highlights that Canadian seed, oil, and meal exports to China were worth $4.9 billion last year, with seed making up the bulk of that value.
"Weyburn producers have a direct stake in that flow and in the stability of that relationship.”
The Weyburn Chamber of Commerce is standing with the Saskatchewan Chamber of Commerce in calling on support for our producers and agriculture industry.
“The Weyburn Chamber of Commerce stands with the Saskatchewan Chamber in urging the federal government to engage directly with Chinese leadership to remove the tariffs and restore full market access and treat Western Canadian agriculture with the same urgency as other industries facing trade disputes. We also call on Ottawa to release a clear support plan for impacted farmers and exporters, not just promises but action.”
Osborn explains some options before local producers include redirecting canola to other markets like Japan or Mexico. She says while this is possible, freight costs are an additional $15 to $20 per tonne.
China has also flagged other Canadian crops including wheat and barley, which raises fears of broader trade retaliation.
“Weyburn businesses should stay in close contact with buyers, monitor the market shifts and prepare for volatility. We encourage all affected producers, processors and agribusinesses in the Weyburn area to reach out to us, the Chamber of Commerce.”
“Share your stories, help us advocate. The more we speak with one voice, the stronger our case becomes.”