CALGARY—Canadian canola producers are increasingly worried about the future of their crops as a second company has had its export licence revoked by China amid concerns the issue could be more political than scientific.

Saskatchewan company Viterra Inc., had its licence revoked by China on Tuesday, the second Canadian canola company to have that happen after Manitoba’s Richardson International had its licence pulled earlier in March. Chinese customs officials cited the same pest concerns with Viterra’s shipments as with Richardson’s.

Some are saying the issue is a political one, not scientific, linking it to the ongoing situation with Huawei executive Meng Wanzhou. Meng was arrested in Vancouver on Dec. 1, and the extradition process began March 1.

The ministers of international trade and agriculture were called to appear before the parliamentary trade committee next week regarding the ongoing issue. Just after the second ban was announced, Prime Minister Justin Trudeau said he’s considering sending officials to China in an effort to sort out the situation.

Brian Innes, vice-president of public affairs with the Canola Council of Canada, said though companies’ permits being revoked is a big issue, the standoff is affecting more than just those two companies.

On March 21, a press release from the council stated China had stopped buying canola seed from Canada altogether, only taking in processed products, such as oil and meal. China is a significant buyer of both processed and unprocessed canola from Canada, accounting for around $3.5 billion every year, or about 40 per cent of Canadian canola exports.

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“We understand from all of our exporters that there is no interest from Chinese buyers to purchase Canadian canola seed at this time. So we now have two companies that no longer have licences to export, but we understand there’s no purchases to export anyways,” said Innes. “We’re perplexed how suddenly our canola can be a problem when we have been shipping … record amounts of canola seed, oil and meal to China.”

Innes said the Canadian canola market has diversified over the past 10 years, meaning more Canadian canola is processed in the country, which makes it more valuable.

Ray Orb, president of the Saskatchewan Association of Rural Municipalities, said he thinks Canadian processing plants could see a boost, since China is still buying processed canola. However, Innes said most plants are at full capacity, and he hopes this “hiccup” will be resolved soon so canola farmers can feel confident in their crops.

“There may be some more processing that can happen in North America and Canada,” he said. “But we cannot replace the size of the Chinese market.”

Rob Stone farms around 7,800 acres in central Saskatchewan, more than a third of which are canola. He said that since December, he has seen the slowdown, and revoked licences seem like an escalation in an already uncomfortable situation for farmers.

“Exports into China have been basically nil since December, but it just kind of became a bit more evident … that they really weren’t interested in doing business with us,” he said, adding he feels the government is “kind of stuck in a hard spot,” but that he hopes the issue will be resolved soon.

He said it has been “very stressful” for farmers, who mostly have their crops planned out already but are now concerned about being able to sell them. While some farmers pre-sell their crops, many still have unsold canola to worry about, Stone said.

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“There’s going to be a hangover from it for a long time, even after we … get this issue solved,” he said.

Canadian Agriculture and Agri-Food Minister Marie-Claude Bibeau said in a statement that the government is “working through all available channels in China and here in Canada to find a science-based solution.”

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