AAFC News: China Delays Canola Export Standards Changes Until September 1.

[AgrivilleAdmin]

March 29, 2016 - Ottawa, Ontario – Agriculture and Agri-Food Canada News

The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, today issued the following statement in response to China’s standard for foreign material in canola shipments:

“Following discussions between the Governments of Canada and China, China has indicated that they will allow Canadian canola exports to continue under the current commercial conditions until September 1, 2016. Export conditions to China remain unchanged as Canadian and Chinese officials continue to work on a permanent, science-based solution.

“I had a very constructive conversation with the Chinese Ambassador recently and I thank him for collaborating on this issue, especially as both countries consider greater economic ties.

“Canola trade is of significant economic importance to both countries and is a key aspect of Canada’s bilateral relationship with China. We will continue to work with China and the Canadian canola industry to resolve this issue.”

[bucket]

Holy shit .... an extension to September 1.

Wow ... that's some articulate negotiating.

Good on our government officials ....must have got advice from gerry on that one.

[wmoebis]

I'd like to hear more about what the discussions with the Canadian Canola industry are.

Farmers pay to have the canola cleaned to 0% dockage and are deducted for that dockage then the elevators sell it either for feed, put it back in or don't take it out in the first place.

In fact most elevators take out more than they are allowed, by using wrong hand sieves and instead of doing a hand pick take out whole and broken canola and call it dockage.

The same thing goes on with all grains just that China is complaining right now, the rest will follow eventually.

[farming101]

The story is being published that canola is cleaned to zero percent in the elevator
or terminal and then dockage is added back in.

I really doubt any terminal or elevator has the capability to clean to zero dockage.
However it shouldn't be too hard to get it down to one percent.

[wmoebis]

Elevators can clean to 0% on their primary cleaners and can clean to beyond that on the secondary cleaners. It is generally on the secondary's where they add dockage (canola fines etc) back to bring it to commercially clean standards or to meet the specs for their shipments.

[farming101]

Thanks wm Not sure what you mean when you say that the secondaries clean
beyond zero?
Also if seed is cleaned to zero now than this China thing is a non issue isn't it?

[wmoebis]

Beyond 0% is they can set equipment to take out small canola seed, they don't want to do that, because small canola is still good canola. Size doesn't matter.

Because our export standards for commercially clean allows for 2.5% total DKG but only of certain material. Like max .3 wild oats etc and up to a total .5 on top of round hole with a total of 2.5%.

So in order to meet the specs they can add more material back in, usually fines.

When they do your DKG on your delivery they should be using the slotted sieve that will only take out conspicuous admixture up to grade tolerance, not all the broken and small canola. Which means that if you are degraded for say green count, they may not use the same sieve as they would for a higher grade. Therefore you may have less dockage in a #3 than in a #1 on the same sample. You are only allowed 1% hand pick in a #1 but 2% in a #3 so they may have to use a different slotted sieve to leave allowable conspicuous admix in to do their hand pick then add that hand pick back to dockage not the broken and small canola.

What usually happens at the elevator, they will use the larger hand sieves (040 or 038) and take out everything and don't bother doing a hand pick. Just to save time. That can be costing you alot by taking out broken and small canola and calling it dockage.

[farming101]

So, the grain companies are the ones that are upset by the 1% China deal
because that curtails their business of paying farmers nothing for dockage
and then putting 2.5 percent in the export shipments and charging it out
at 550 dollars a tonne. Nice work if you can get it.
In a 40,000 tonne ship there would be half a million dollars worth of dockage.

[wmoebis]

Yes But! remember WGEA saying that if they had to start paying farmers for dockage or take less dockage that they would have to take money from somewhere else?

http://www.producer.com/2013/02/are-elevators-failing-the-grade/

[farming101]

I would think the cost to purchase and operate the cleaning equipment is in the price
they can afford to pay the farmer now. What more do they want?

Farmers sell canola with 1-2 percent dockage now. Who is this costing again?