context: With Canadian canola cut off by a 75.8 percent deposit under Beijing’s anti-dumping probe, PRC crushers face a 400,000-tonne monthly gap equal to 70 percent of domestic canola oil output. Beijing had also imposed 100 percent tariffs on Canadian canola oil and meal, further straining supply. Against this backdrop, the resumption of Australian canola imports marks both a market adjustment and a thaw in bilateral trade relations.
COFCO confirmed the purchase of 50,000 tonnes of Australian new-crop canola on 19 August, with shipment scheduled between November and December.
This is the first PRC import of Australian canola since 2020, when phytosanitary restrictions halted trade. Market participants describe the deal as a breakthrough in bilateral relations, writes Edible Oil Network.
The cargo was contracted below US$600 per tonne CNF, cheaper than Canadian supply. COFCO is negotiating additional purchases, with further orders expected.
Sources note the canola is genetically modified, requiring special approval. The Ministry of Agriculture and Rural Affairs granted COFCO Oils seven GM safety certificates on 15 August, clearing final regulatory hurdles. Analysts highlight that domestic crushing margins are currently attractive, suggesting imports could arrive in PRC ports by late December or early 2026.
Australia is the world’s second-largest canola exporter. From September 2020 until this deal, the PRC had effectively suspended imports due to blackleg disease concerns.
Reports in July suggested Canberra and Beijing were close to agreeing five trial cargoes; it remains unclear whether this purchase is part of that pilot.
Australian Bureau of Statistics data show June exports dropped to 102,000 tonnes from 659,000 tonnes in May as old-crop stocks ran down. November new-crop supply is expected to keep monthly exports under 150,000 tonnes until harvest. In the first nine months of 2024/25, exports reached 4.95 million tonnes, led by Belgium (1.41 million), Germany (1.08 million) and France (60,000 in June).
The Australian Oilseeds Federation projects 2025/26 output at 5.97 million tonnes, down from 6.24 million in 2024/25.
While limited production caps future exports, the PRC’s return is expected to revitalise the sector. The deal reduces immediate supply risk for PRC crushers and signals a gradual warming of ag trade ties with Australia.