Thank you for the invitation to appear before this special committee.
The Canadian Canola Growers, or CCGA, is the national association for Canada's 43,000 canola farmers, representing them on issues, policies and programs that impact their farm success. Developed in Canada, canola is a staple of Canadian agriculture as well as of science and innovation. Canola is a strong economic contributor to family farms and rural communities.
Canola is the number one revenue source of farmers, earning Canadian farmers $13.7 billion in 2023. Canadian canola exports were valued at $15.8 billion in 2023, with 90% of this crop exported as seed, oil or meal. Annually the canola sector contributes $29.9 billion to the Canadian economy and provides for 200,000 jobs.
The Indo-Pacific region is a critical area for growth and development for the export of Canadian canola seed, oil and meal. Of greatest importance in the region for canola is China. Canada exports canola seed, oil and meal to China, making it the second most important market for Canadian canola farmers. The main exports in recent years have been seed and canola meal.
In 2023, Canada exported nearly 4.6 million metric tons of canola seed to China, the second-highest export to date, making it the most important seed market. Canola meal exports to China are becoming increasingly important, with 1.8 million metric tons exported in 2023 for a total value of $5 billion in canola exports to China in 2023.
The canola industry is set to grow in terms of total canola yield as well as in the volume of canola that is processed in Canada into oil and meal. Increased canola processing in Canada could potentially generate three million metric tons of additional canola meal. While canola oil is seeing high demand as a feedstock for renewable fuel production in North America, the additional canola meal volume produced will need to continue to find high-value markets.
China's high demand for protein ingredients, as well as plants to diversify its vegetable protein sources for livestock feed, position canola meal well within the market. In addition, China's growing dairy industry's use of canola meal is a proven ingredient in support of increased milk production. In addition to China, the Indo-Pacific region holds opportunity for canola products to be valued and in high demand.
For Canadian canola farmers, countries of interest within the region include Bangladesh, Indonesia, Japan, Pakistan, the Philippines, South Korea, Thailand and Vietnam. Japan is a consistent and loyal buyer of Canadian canola. Strong ties between our two countries support reliable trade. Vietnam, Thailand, Indonesia and the Philippines all represent markets of interest for canola meal. These countries have growing feed markets and increasing demand for vegetable protein ingredients. South Korea has also been a consistent importer of canola oil over the past decade.
Canadian canola farmers grow a high-value crop that is in demand around the globe. Within the Indo-Pacific region, China remains a critical market of importance to farmers, with the industry committed to fostering and expanding this trading relationship. In addition, we see value in the work the Canadian government and our fellow associations are doing to expand market opportunities within the Indo-Pacific region aligned with the growth of our industry.
The newly opened first-of-its-kind Indo-Pacific Agriculture and Agri-Food Office in Manila will play a key role in market access, reduce trade disruptions and likely assist in ongoing free trade agreement negotiations with ASEAN countries and Indonesia.
I look forward to your questions.
Thank you.