market trends and - canadian seed trade association · ($14.7). anadas number one seed import is...

MARKET TRENDS AND

OUTLOOK FOR CANADA’S

SEED TRADE 2018 Prepared for the Canadian Seed Trade Association

T. Bjornson & Associates Consulting Inc. March 31,2018

Abstract A country-by-country analysis of Canada’s market trends for seed exports and imports.

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Contents Executive Summary ............................................................................................................................................... 2

Top 10 Country Profiles ........................................................................................................................................ 4

United States of America ................................................................................................................................. 4

China ................................................................................................................................................................. 8

South Korea .................................................................................................................................................... 12

Iran .................................................................................................................................................................. 15

Netherlands .................................................................................................................................................... 18

Ireland ............................................................................................................................................................. 22

Italy ................................................................................................................................................................. 23

Japan ............................................................................................................................................................... 27

Turkey ............................................................................................................................................................. 30

United Kingdom ............................................................................................................................................. 33

Emerging Markets ............................................................................................................................................... 36

India ................................................................................................................................................................ 36

Spain ............................................................................................................................................................... 38

Colombia ......................................................................................................................................................... 40

Canadian Seed Imports ....................................................................................................................................... 42

Conclusion ........................................................................................................................................................... 50

Appendix : Canadian Trade Commissioner Services ........................................................................................... 51

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Executive Summary The Canadian Seed Trade Association has commissioned

this report to examine the market opportunities for

Canadian seed based on the five-year trend of crop years

beginning in 2012/13 through to 2016/17. The analysis

includes a country-by-country examination of Canada’s top

ten seed export destinations based on 2016/17 overall

seed sales. Country profiles include an analysis of tariff and

non-tariff trade barriers, an overview of traditionally grown

and emerging crops in each of these markets and, where

relevant, a look at socio-economic and political factors of

note that may present opportunities or hurdles for

potential seed exporters. In addition to the top ten market

destinations based on overall seed sales, the report also

considers important emerging country markets where the

authors have identified opportunity based on observable

sales trends on a variety of product lines (arranged by

Harmonized System (HS) codes). Finally, the report

provides an outlook on market trends in Canadian seed

imports, to help Canada’s seed trade identify opportunities

here at home where Canadian growers may have

traditionally looked abroad for seed varietal needs but

could potentially be persuaded to source domestically.

The market analysis finds Canadian seed has extensive

world reach in a variety of well developed and emerging

markets. The United States has and will continue to be

Canada’s most important market for most every crop kind,

dwarfing all other market destinations by comparison.

China, South Korea, Japan and four European countries -

the Netherlands, Ireland, Italy and the United Kingdom,

were all among the top ten market destinations in 2016/17

based on overall seed sales. Turkey and Iran, both

emerging markets, were also among the top ten Canadian

seed export destinations last year (2016/17). Success in

Iran was due almost exclusively to soybean seed sales

along with a small portion of lentil seed while Turkey has

proven to be a relatively reliable market for pulse crops as

well as forage and turf seeds.

Canada’s single top seed export in 2016/17 was hemp seed due to remarkable sales of the seed crop to the

United States and also South Korea where hemp (perilla) seed is becoming an important dietary option for

protein and healthy oil. Canada has also made sizable sales of hemp seed to the Netherlands and the United

CSTA SeedStat

This report has been prepared in

conjunction with a new online tool

developed exclusively for Canadian

Seed Trade Association members.

“Seed Stat” can be found on the

‘Members Login’ section of the new

website www.seedinnovation.ca In

addition to this more detailed

background analysis, CSTA members

will be able to use this interactive

online search tool to generate

customized data reports and graphing

features to analyze five-year trends

and identify new potential market

destinations or consider further

developing existing ones. With options

to select by value, volume and country

destination(s), users can now generate

their own market analyses. Data can

be organized by crop kind, specific HS

code or broader aggregate data by

market.

SeedStat is sourced from Statistics

Canada import and export data by

country for crop years 2012/13 to

2016/17.

http://www.seedinnovation.ca/

3

Kingdom. Soybean seed, another strong performing oilseed over the five-year period, is making good

headway into Japan, Ukraine, Hong Kong, China and Russia. A particularly noteworthy story for Canadian

soybean has been its success in Iran last year where sales surpassed even that to the US hitting over $34

million in 2016/17, a remarkable dollar figure given this was Canada’s first year selling seed of any variety

into this market. Emerging south east Asian markets are also showing good promise and should also be

watched closely for soybean seed potential. Steady trends upwards of Canadian soybean seed sales were

seen in Taiwan, Malaysia, Thailand and Singapore to name only a few.

Rounding out Canadian oilseed sales worldwide is flax seed for sowing which is well established in China and

has been on a steady trend upwards over the course of the five-year period. Peru, the U.K and South Korea

are also markets showing promise for Canadian flax seed going forward.

On a crop kind basis, pulse seed crops combined to make up Canada’s largest seed export sales in 2016/17.

Pea seed, chickpea, vigna mungo seed, red bean seed, navy and white bean seed, kidney bean seed, lentil

seed, broad bean seed and other non-specified bean and pulse seeds sales totaled a $167.8 M last year. Close

to 300 tonnes of pulse crop seeds goes to the United States every year particularly driven by pea seed,

chickpea and lentils. Canadian pulse seed crops are also showing up in India, Turkey, Spain and Pakistan,

among others, mainly in lentils, pea seed, bean seed and some chickpea seed.

While no individual forage and turf seed crop recorded the big sales numbers we see in crops such as corn,

hemp or soybean seed, strong and consistent sales on a broad range of forage and turf seed often contribute

significantly, and in some cases they are fully responsible for putting any given market on the top ten list for

overall sales, the Netherlands being one such example. Apart from the $111 million worth of forage and turf

seed Canada shipped to the US in 2016/17, Canadian forage and turf seed exporters also did significant

business in China, and in particular the European market where the Netherlands, Germany, Poland, Denmark

and Italy were the top destinations.

With respect to cereal crops, Canadian wheat seed sales have gone almost exclusively to the U.S. with Italy

being the second largest market destination for durum seed and very small amounts of Canadian wheat seed

were recorded in Turkey and Belgium. That said, a remarkable $11 million worth of wheat went to Colombia

in 2015/16 with no other sales to this market before or since. Canada has made very little sales of barley seed

into any market beyond the US while Canadian oat seed by comparison has had further reach with oat seed

sales to China outpacing even that to the US last year. Of note, Mexico has emerged as a new market for

Canadian oat seed in 2016/17.

Canadian corn seed aggregate sales are on a steady trend upwards. The United States has and continues to

be Canada’s number one destination for corn seed though sales have been cut nearly in half from 2012/13

and 13/14 levels, with Canada recording just over $56 million worth of corn seed to the US 2016/17. Canada

did remarkably well in the European corn market last year (2016/17), likely driven in part by the preferential

tariff treatment granted through the Canadian EU Trade Agreement. Under CETA, tariffs went to zero for

some varieties of Canadian corn seed for the first time in 2016/17 as compared to 94 EUR/1000 kg for all

other Most Favoured Nations (MFN) markets. Ireland was the top European destination for Canadian corn

seed, hitting $12 million last year and corn sales to Portugal, Italy, Netherlands and the United Kingdom

where all between $5 and $7 million each in 2016/17. Mexico was also a first-time market for Canadian corn

seed last year (2016/17).

On the import side of the equation, The United States is not surprisingly Canada’s largest seed source outside

its own borders. The United States made up 75% of the $637.2 million of Canada’s total seed imports in

2016/17 followed by Chile ($38.4 million), the Netherlands ($32.5 million), China ($18.7 million) and France

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($14.7). Canada’s number one seed import is corn. The forage and turf seed crops combined to make up the

second largest crop kind imported followed by low erucic rape (canola), vegetable seed, pulse seed, soybean

seed and flax seed.

Canada was at a $63 million positive trade balance position on seed in 2016/17.

Top 10 Country Profiles

United States of America

The United States is Canada’s number one destination for seed and there is every indication it will remain the

most important market going forward. A high-level analysis of the five-year trend (2012/13 to 2016/17)

places the United States at the top of most every crop kind category for overall exports, dwarfing every other

market destination by comparison. In 2017, Canada’s aggregate seed exports to the US hit $419 million. That

is nearly ten times the seed sales Canada made to China, Canada’s number two largest seed market

destination, in 2016/17.

Canada has enjoyed preferential access on seed shipments to the US under the North American Free Trade

Agreement. At the time of writing, negotiations are underway to modernize NAFTA. Negotiations are not

expected to significantly impact the current seed trade with the US. Of note however, Canada’s Seed Act

showed up in the US’ 2017 list of trade practice complaints. Specifically, Canada’s prohibition on the sale or

advertising for sale or import into Canada of various seeds. This annually published list is widely considered

to be the United States’ Government’s list of demands for a renegotiated NAFTA.

Canadian seed has a well-established presence in the US in each of the major crop kind categories. Figure 1.

depicts Canada’s seed exports to the US by overall crop kind over the five-year period, expressed in Canadian

Dollars.

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*Figure 1. does not contain crop kind sales for wheat, barley, flax, sorghum, buckwheat, flower or vegetable

seed sales as they were all under $10 million over the course of the five-year period. For specifics on these

sales visit CSTA SeedStat database under the ‘Member Home’ section of the www.seedinnovation.ca website.

Pulses

As Figure 1. shows, pulse seed which is made up of 10 separate HS Codes of a variety beans, peas and lentils,

has sat at the top of the list of crop kinds exported to the US for the majority of the last five-year period

starting in 2012/13. Pulse seed sales to the US hit $125 million in 2017, driven by bean seed which reached

close to $50 million in sales in 2017 making it Canada’s third largest seed export to the US market. The US

has also been a steady market for Canadian pea seed, with shipments as high as $42 million over the course

of the five-year period. Chickpeas saw significant growth over the five-year period starting at just under $4

million in 2012/13, chickpea shipments took off in 2015/16 reaching $18.5 Million in 2016/17. Lentil seed

exports have also seen growth, more than doubling sales from $10 million in 2012/13 up to over $22 million

in 2017.

Oilseeds

Under the oilseed category, hemp seed (HS 12079910) was the single largest seed export to the US, it was

also the top Canadian seed export globally in 2016/17. This crop export to the US has close to doubled over

the five-year period hitting $62 million in sales to the US in 2015/16. While hemp has been historically grown

in the US for centuries, hemp cultivation was only made legal again through the 2014 Farm Bill which made

limited allowances for the crop to be grown for research purposes by universities and state departments of

agriculture. 1 Since then, at least 30 states have passed legislation related to industrial hemp, with at least 16

1 USDA National Institute of Food and Agriculture

CSTA SeedStat(Statistics Canada)

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

2012/13 2013/14 2014/15 2015/16 2016/17

Figure 1. Canadian Seed Exports to the US by Crop Kind

Pulse Forage & Turf Hemp Corn Rye Canola Soy Oats

http://www.seedinnovation.ca/

https://nifa.usda.gov/industrial-hemp

6

legalizing hemp production for commercial purposes. According to a 2016 study by Agriculture and Agri-Food

Canada’s Research Branch in partnership with Cornell University, demand is expected to continue to grow for

seed and oil from the health food markets, as well as for industrial uses and the pharmaceutical market.2

The US has also been a steady market for canola seed for sowing. Northern US states where the US Canola

crop is mainly grown are heavily impacted by trends in the Canadian canola market. Success in Canada should

continue to translate into success for northern US canola growers which means potential for steady seed

demand into the future.3 Canola seed combined with a small portion of non-low erucic rape seed resulted in

close to $18 million in canola seed sales to the US in 2017.

As the US most valuable agricultural export, the US soybean market will remain in steady demand of soybean

seed. Industry observers note that increased grower demand for a variety of GM traits will keep the US

soybean seed market very competitive going forward. (Reuters, January 2018, “Battle of the beans:

Monsanto faces a fight for soy market”). Canada saw a dip in soybean sales to the US from over $20 million in

2013/14 and 2013/14 down to $13 million in sales in 2016/17.

Table 1. provides a more detailed breakdown of Canada’s top seed exports to the US over the five-year

period.

Corn

Yellow Dent Corn seed (HS 10051010) is in the number two spot for single largest seed export to the US in

2017 at close to $55 million but overall sales have been cut by more than half from the over $100 million

Canada exported to the US in 2013/14 and 2014/15. The US corn seed market has seen some volatility over

the five-year period due potentially in part to uncertainty over China’s acceptance of unapproved GM corn

2 Jerome H. Cherney, Ernest Small, Industrial Hemp in North America: Production, Politics and Potential. (MDPI Open Access Journal: 2016) 3 Mark Ash, USDA Economic Research Services “Canola” www.ers.usda.gov/topics/crops/soybeans-oil-crops/canola.aspx

Table 1. Canada Oilseed Seed Exports to the US: A Snapshot

(Values in $CAD)

HS code Description 2012/13 2013/14 2014/15 2015/16 2016/17

12079910 Hemp Seed $19,890,795 $28,621,050 $52,501,030 $62,331,117 $59,286,631

12051010 Canola Seed

$17,859,776 $13,397,215 $14,401,450 $19,312,230 $17,198,971

12011000 Soya bean Seed

$20,028,639 $20,720,868 $14,971,192 $10,814,281 $13,227,124

12059010 Rape Seed (other than low erucic)

$5,184 $12,496 $135,677 $9,338 $479,314

12040010 Flax seed $333,567 $304,352 $319,897 $382,173 $312,655

CSTA SeedStat (Statistics Canada)

https://www.reuters.com/article/us-usa-pesticides-soybeans-insight/battle-of-the-beans-monsanto-faces-a-fight-for-soy-market-idUSKBN1FD0G2

https://www.reuters.com/article/us-usa-pesticides-soybeans-insight/battle-of-the-beans-monsanto-faces-a-fight-for-soy-market-idUSKBN1FD0G2

http://www.mdpi.com/2073-4395/6/4/58

http://www.mdpi.com/2073-4395/6/4/58

http://www.ers.usda.gov/topics/crops/soybeans-oil-crops/canola.aspx

http://www.ers.usda.gov/topics/crops/soybeans-oil-crops/canola.aspx

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traits which sparked a series of legal battles between seed companies and growers. (Reuters, March 2018,

“US farmers seek approval of $1.51 bln GMO corn settlement with Syngenta”)

Forage and Turf Seed

The bulk of the remaining Canadian seed shipments to the US fall under the forage and turf crop category.

Creeping red fescue seed has seen a $10 million dollar jump in sales over the five-year period, reaching $23

million in 2016/17. Canadian certified alfalfa seed has likewise seen steady growth into the US market while

rye has been on a decline over the five-year period but still bringing in over $20 Million overall in 2016/17.

The following table is a more detailed breakdown of Canada’s exports to the U.S. organized by individual HS

code.

Custom Tariffs

Assuming the relevant NAFTA Chapters remain intact going forward, Canada will continue to enjoy

preferential treatment on our pulse seed crops – pea seed, chickpeas, mungo, adzuki, navy, white and kidney

Table 2. Canada Seed exports to the United States

(Values in $CAD)

Description 2012/13 2013/14 2014/15 2015/16 2016/17

12079910

Hemp seeds, whether or not broken

19,890,795 28,621,050 52,501,030 62,331,117 59,286,631

10051010 Yellow dent corn seed

100,976,729 100,663,601 29,364,395 44,772,698 54,831,113

7133910

Bean seeds, nes, of a kind used for sowing, dried, shelled

45,284,976 37,845,361 36,788,386 42,972,064 49,326,999

7131010

Pea seeds, of a kind used for sowing, dried, shelled

18,275,552 31,189,903 41,828,523 34,878,691 29,897,706

12092319

Creeping red fescue seeds, for sowing, o/t certified

13,318,380 17,376,976 17,840,108 23,504,055 23,116,309

7134010

Lentil seeds, of a kind used for sowing, dried, shelled

10,114,837 7,675,378 15,802,727 20,729,196 22,352,082

12092190

Lucerne (alfalfa) seeds, for sowing, o/t certified

17,817,459 25,475,043 18,828,337 27,386,406 22,102,711

12092110

Lucerne (alfalfa) seeds, for sowing, certified

9,769,616 12,215,177 14,322,149 23,588,323 20,241,807

10021000 Rye, seed for sowing 28,892,059 26,572,540 19,725,715 21,147,475 20,187,962

7132010

Chickpea seeds, of a kind used for sowing, dried, shelled

3,886,542 2,920,496 3,813,747 18,617,801 18,459,971


https://www.reuters.com/article/syngenta-ag-settlement/u-s-farmers-seek-approval-of-1-51-bln-gmo-corn-settlement-with-syngenta-idUSL1N1QU21U

https://www.reuters.com/article/syngenta-ag-settlement/u-s-farmers-seek-approval-of-1-51-bln-gmo-corn-settlement-with-syngenta-idUSL1N1QU21U

8

bean seed as well as lentil seed are all at zero percent tariff for NAFTA partners as compared with 0.8¢/kg to

1.5¢/kg for all other Most Favoured Nations (MFN) under the WTO.

Canada as a NAFTA member also has a 2.8% advantage over MFNs on wheat and meslin seed and durum

seed for MFNs is at 0.65¢/kg as compared to Canada’s zero tariff as a NAFTA partners.

Non-Tariff Trade Barriers

Canada has historically enjoyed relatively easy and open access on seed for sowing. However, seed exporters

should be aware of recent (May 9,2018) changes made to Chapter 4 Plants for Planting from Canada (p.223)

of USDA-APHIS’ Plants for Planting Manual which govern seed export requirements from Canada to the US. In

summary, the newly published changes mean that USDA-APHIS will no longer accept CFIA-5289 certificates -

seed analysis certificates issued by accredited seed labs in Canada on export shipments of seed from Canada

that was grown in a country other than Canada or the US. USDA-APHIS now requires a phytosanitary

certificate issued by the CFIA in lieu of the CFIA-5289. Seed exporters are encouraged to consult the updated

Chapter of the manual for details. Furthermore, grains, intended for seeding or screening, may have different

restrictions than grains for food. Canadian exporters are advised to consult with their US Customs Broker or

the US Customs and Border Protection before shipping any of these products.

China

China is Canada’s number two largest seed export destination based on 2016/17 sales. China can be defined

as an emerging market given its rapid move from developing country towards an open market economy.

Canadian seed exports to China however are reasonably well established and as such, for the purpose of this

report, we are classifying China as both a top 10 and emerging market.

China is the second largest seed market in the world, annually planting 12.5 million tons of seed, with a

market value at $17.2 billion.4 Statistics Canada numbers show that Canada contributed just over 50

thousand tonnes of that seed in 2017, a steady increase from just 7 thousand tonnes in 2012/13. China is a

well-developed and diverse seed market for Canada, receiving seed of most every crop kind from flax, grass,

oats, wheat, soy and pulses with the notable exception of corn. In general, all seed exporters to China should

benefit from the country’s value-added tax (VAT) exemption policy on seed imports which has been in place

since 2006.5

Table 3 that follows is a detailed breakdown of Canada’s seed exports to China organized by individual HS

code.

4 USDA GAIN Seed Report 2017 5 USDA GAIN Seed Report 2017

https://www.aphis.usda.gov/import_export/plants/manuals/ports/downloads/plants_for_planting.pdf

https://www.aphis.usda.gov/import_export/plants/manuals/ports/downloads/plants_for_planting.pdf

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/China's%20Planting%20Seeds%20Market%20Continues%20to%20Grow_Beijing_China%20-%20Peoples%20Republic%20of_1-17-2017.pdf


9

Oilseeds

Flax seed has emerged as one of the biggest success stories in China for Canada over the five-year period

putting it in the number one spot for seed exports in 2017. Flax seed shipments have seen an 640% increase

from just over $2 Million (3,140 tonnes) in 2013/14 to close to $16 million (28,894 tonnes) in 2016/17.

Also in the oilseed category, soybeans have seen steady growth from just $21 thousand (27 tonnes) in

2012/13 to $1.5 million (2,060 tonnes) in 2016/17, putting it in the number six spot for overall Canadian seed

shipments to China in 2016/17.

Of note, Canada did not ship any hempseed to China over the five-year period despite the fact that China is

the largest producing and exporting country responsible for an estimated 1/5 of the world’s hemp

production. 6 This is a potential untapped market for Canada.

6 Industrial Hemp from Seed to Market, Cornell Cooperative Extension

Table 3. Canada Seed exports to China

(Values in $CAD)

HS Code Description 2012/13 2013/14 2014/15 2015/16 2016/17

12040010 Linseed, w/n broken, for sowing

2,154,545 6,027,843 7,406,231 14,375,639 15,950,028

12092520 Rye grass seeds, perennial, for sowing

2,975,611 2,700,405 3,566,472 3,673,825 5,731,088

10041000 Oats, seed for sowing 41,466 60,931 2,462,786 3,530,275 4,674,462

12092110 Lucerne (alfalfa) seeds, for sowing, certified

3,667,705 4,911,408 6,029,673 6,796,580 2,989,473

12092991 Seeds, Wild rye, for sowing

398,071 1,824,152 840,002 573,916 2,026,526

12011000 Soya beans, seed for sowing, whether or not broken

21,073 364,307 242,598 409,810 1,516,533

12092240 White clover seeds, for sowing

0 579053 188133 530260 1,220,842

7131010 Pea seeds, of a kind used for sowing, dried, shelled

0 383,131 2,048,121 770,821 1,166,593

12092320 Tall fescue seeds, for sowing

236,889 613,839 214,260 246,427 926,331

12092929 Seeds, Wheatgrass, nes, for sowing

18,080 258,567 143,061 466,338 891,021


http://ccetompkins.org/resources/industrial-hemp-from-seed-to-market

10


As Figure 2. shows, forage and turf seed products have consistently sat the top of Canada’s seed shipments to

China (though most recently flax is rivalling for the top spot) with rye grass seeds and wild rye grass seed

combining for a $7.8 million in sales in 2016/17 while certified alfalfa hit nearly $3 million in sales, white

clover at $1.2M and tall fescue seed and wheat grass were also in the top 10 both at close to $1 million in

sales respectively in 2016/17.

Cereals

Oat seed is Canada’s third largest seed export to China. At $4.7 million in 2016/17, oat seed has seen steady

growth in this market from zero in 2013/14. Canada’s sales to China on oat seed were nearly double of that

to the US in 2016/17. Canada has done little to no experimentation with other cereal seeds in the Chinese

market. Roughly $650K worth of barley seed went into China in 2013/14 and Canada did nearly $800 K worth

of sales of this seed crop 2015/16. There were no sales of Canadian barley seed to China in 2016/17.

Pulses:

Just over $1 million worth of Canadian pea seed went into China in 2016/17. This is a relatively new market

for pea seed with 2013/14 being the first year of sales. The largest pea seed sales were seen in 2014/15 at

just over $2 million. No other pulse seed crops (chickpeas, lentils, navy bean, adzuki bean, kidney beans etc.)

have shipped to China in the five-year period.

Corn:

There have been no Canadian corn seed shipments to China over the course of the five-year period. China

prohibits the importation of Canadian corn seed in keeping with its strict restriction on the planting of any

GMO seed. A limited number of GMO seeds not for planting have been approved in China. (see Non-Tariff

Trade Barriers for more information). In 2014, for the first time, corn surpassed rice in terms of overall

Chinese domestic production.


0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

20000000

Figure 2. Canadian Seed Exports to China by Crop Kind

Forage/Turf Flax Oats Soy Pulse

11

Vegetable Seed:

There have been no Canadian exports of vegetable seed to China over the five-year period. According to the

USDA 2017 GAIN Seed Report, Italy, Denmark, and Thailand supplied 73 percent of China’s vegetable seed. In

2015/16 vegetable seeds generate higher returns than major field crops, such as corn, rice and wheat and as

a result, vegetable farmers are seen willing to invest in better seeds for better yields. 7

Custom Tariffs

Canada has ‘Most Favorite Nation’ status in China and the only relevant tax rates are on linseed (15%) and on

pea seed (13%).

Tariff and Non-Tariff Trade Barriers

China officially prohibits the commercial cultivation of GM seed. The Chinese government has approved

limited numbers of GE domestic seed varieties of GE corn and rice but they have not been commercialized

and no foreign biotechnology food or feed crops have been approved for domestic cultivation. (USDA GAIN

Seed Report, 2017) Nevertheless, cases of illegal planting and stealing of GM technology from the US have

been widely reported. Xinhua, the official press agency of the Chinese Government confirmed for a second

time in 2017 that, while the Government will remove some barriers for those applying for a seed production

and trade licenses, the major-crop seed approval system will remain unchanged meaning seeds for major

crops -- rice, corn, wheat, soybean and cotton -- must be approved by agricultural regulators before they can

be marketed. This upholds a 2015 legislative amendment to crack down on “the rampant trade of counterfeit

seed” according to the Chinese Government. The Chinese Government’s stated rationale of the law is a

“prudent attitude toward GM seeds (…) breeding, testing and promotion of GM seeds must be assessed and

controlled.”8 Weak Intellectual Property Rights protection has been a major barrier to the development of

China’s seed industry, a problem China has been trying to address through multiple policy changes.

China’s ban on GE seed for planting has affected Canada’s access to China for all corn seed and as of March

2018, CFIA has confirmed China’s continued prohibition on all Canadian corn seed.

Canadian companies wishing to export to China must present the CFIA with a copy of an import permit issued

by China's General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) in association

with any applications that Canadian exporters submit to the CFIA to certify exports of seeds for propagation

to China.

According to CFIA records, China has provided import permits and/or have certified export shipments to

China on wheat, rye, oats, sorghum, millet, soybean, and grass seeds. This is generally an indication that

Canada has continued market access on all these crops.

The CFIA has no records of import permits issued for Canadian chickpeas, lentils, beans (non-soy), barley,

buckwheat, sunflower, flax, canola, and sugar beet seeds for China. Barring any untested non-tariff trade

barriers, these crop kinds could represent opportunity for Canadian seed exporters.

7 USDA GAIN Seed Report 2017 8 Ministry of Agriculture and Rural Affairs of the People’s Republic of China, News Release: “Chinese

legislature to better regulate seed industry”, Beijing, October 30, 2015



https://tribune.com.pk/story/1082538/in-iowa-corn-fields-chinese-nationals-seed-theft-exposes-vulnerability/


http://english.agri.gov.cn/news/dqnf/201511/t20151102_26792.htm

http://english.agri.gov.cn/news/dqnf/201511/t20151102_26792.htm

12

South Korea

South Korea was Canada’s third largest destination for

seed in 2017, driven almost exclusively by hemp seed

sales. Given South Korea’s shortage of arable land

(making up just 15% of the country’s overall land

according to the World Bank)9, South Korea is heavily

dependent on imports. South Korea’s most important

domestic crop is rice accounting for 90% of total grain

production and 40% of farm income. That said, FAO

stats reveal that overall area harvested in South Korea

holds opportunity for a variety of other crops and in

turn demand for seed. Table 4. is a snapshot of South

Korea’s overall area harvested in 2016 by crop kind.

As Table 4 shows, opportunity exists particularly for

maize but also for beans, soybeans, vegetable seed,

rye, sorghum and wheat.

Table 5 below, provides a detailed breakdown of

Canada’s top exports to South Korea by HS code over

the five-year period.

9 tradeeconomics.com : South Korea Arable Land Percentage

Table 4. South Korea area harvested by

crop kind 2016

Seed Crop Area Harvested / Ha

Maize 544500

Rice, paddy 468700

Beans, dry 365759

Soya beans 300068

Vegetables, fresh nes

177758

Potatoes 140168

Fruit, fresh nes 130728

Apples 69547

Millet 69229

Tobacco, unmanufactured

55192

Rye 53007

Wheat 36937

Sweet potatoes 32147

Sorghum 31254

FAO Stat

https://tradingeconomics.com/south-korea/arable-land-percent-of-land-area-wb-data.html

13

Oilseeds

Hemp also known in Korea as perilla seed is Canada’s number one export to South Korea and is nearly

exclusively responsible for putting South Korea in the number three spot for overall top seed markets for

Canada. Sales of hemp seed surged in 2016 reportedly driven in part by South Korean’s increased demand for

protein and healthy oil alternatives to fish, traditionally sourced from Japan. Following the Fukushima nuclear

power plant accident in 2011, suspicion of contamination sent South Korean’s seeking a dietary substitute

and hemp seed products fit the profile.10 Canadian exports of hemp seed to South Korea hit close to $32

Million in 2016/17.

Canada has made very little sales of other oilseeds for sowing to South Korea with a small portion of

Canadian soybean seed hitting $125K in its best sales year of 2016/17 and just under $400 K of flax seed was

shipped in 2017.

Pulses

Navy, white and other bean seed sales made pulses the second largest crop kind category combining to make

a total of just under $4 Million in sales in 2016/17. Bean seed other than navy and white made up the biggest

portion of those bean seed sales, going from zero in 2015/16 up to over $2 Million the following year

signaling some room for growth in this market.

10 Western Producer. “Hemp takes off in S. Korea”. Robert Arnason. May 12,2016

Table 5. Canada Seed exports to South Korea

(Values in $CAD)


12079910 Hemp seeds, whether or not broken

0 141,163 234,689 16,764,306 31,759,829

7133910 Bean seeds, nes, of a kind used for sowing, dried, shelled

0 0 0 0 2,072,614

7133311 Navy and white pea bean seeds, of a kind for sowing, dried, shelled

37,195 859,698 626,993 480,930 1,788,109


0 70,381 93,978 328,590 390,365

10041000 Oats, seed for sowing 232,539 0 76,242 455,166 155,556


0 0 50,305 93,813 125,480

7134010 Lentil seeds, of a kind used for sowing, dried, shelled

0 0 0 0 74,815


https://www.producer.com/2016/05/hemp-takes-off-in-s-korea/

14

Cereals

South Korea has not been a destination for Canadian cereal seed other than rye and oat seed. Rye seed sales

were as high as $4 million in 2012/13 but that number was down to $0 in 2015/16 and 2016/17. Oat seed has

also experienced some volatility over the five-year period, hitting $232 K n 2012/13, down to zero the

following year, and up to $455 K in 2015/16.

The follow figure gives a high-level snap shot of Canada’s exports to South Korea, broken out by crop kind.

Custom Tariff

Canada will continue to enjoy its competitive advantage with South Korea thanks to the Canada -South Korea

Free Trade Agreement (CKFTA) signed in 2014. Once the tariff elimination schedule is complete, the

agreement will have eliminated 98.2% of its tariff lines for goods imported from Canada. For seed specifically,

Canadian hemp (perilla) seed will have a significant advantage over most favoured nation tariffs who will pay

a 40% duty. Under the CKFTA, Canadian seed exporters will pay a 24% or 246 won/kg, whichever is the

greater on hemp seed as of 2018 which will be steadily reduced year over year to zero by 2024. Likewise,

Canadian soybean seed for sowing is at zero up to a maximum of 12,500 MT as of 2018, giving it a 3%

advantage over competing soybean from other destinations. The duty-free quota will grow to 17,000MT by

2025. Competing countries pay a 27% duty on navy and white pea bean (navy and white beans) seed and all

other no specified beans to South Korea, while Canada pays a much-reduced duty of 16.2% on navy and

white pea bean seed and 5.4% on all other bean seed as of 2018 which are scheduled to reduce to 0% by

2019. South Korea also maintains a 27% duty on lentil seed imports but under the CKFTA only charges

Canadian exporters a 5.4% duty which will go to zero as of next year (2019). South Korean duties on turf and


0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

2012/13 2013/14 2014/15 2015/16 2016/17

Figure 3. Canadian Seed Exports to S. Korea by Crop Kind

Hemp Pulse Rye

15

forage seeds are already at zero for most favoured nations as is the case for vegetable and flower seeds for

sowing, giving Canada no advantage in this respect.


In terms of potential non-tariff trade barriers, South Korea is “cracking down” on biotechnology. As of

February 2017, Korea implemented new biotech labeling requirements for any food with detectable biotech

ingredients. According to USDA FAS, in May 2017 the National Seed Management Agency (NSMA) found

unapproved canola plants in Korea. The investigation confirmed that canola seeds imported from China

contained an unapproved GE event.11

Iran

Iran was Canada’s fifth largest seed destination in 2016/17. Remarkably, Canada made no sales to Iran before

this year. As such, for the purpose of this report, we are classifying Iran as both a top 10 and emerging

market.

Due to Canada’s sanctions against Iran over the country’s nuclear program, this market went untapped by

Canada until 2016/17 when sanctions were lifted. In a single year, Canada broke into the Iranian market,

making over $34 million worth of soybean seed sales (66,000 tonnes). That combined with 53 tonnes of lentil

seed worth $76,992, put Iran in the number four spot for overall Canadian export markets for seed in

2016/17. No other crop kind seed exports from Canada have been reported since the lifting of Canada’s

sanctions.

Custom Tariffs

Iran’s import duties for seed of any kind in Chapter 7 – edible vegetable crops which includes pulses, are

classified at 5% of the product’s value. Likewise, import duty on seed cereals in Chapter 10 are all classified

at 5% of the value. Iran’s import duties on seed of any kind under Chapter 12 which cover seeds of oil seeds –

rape, soy and flax, sugar beet seeds, cotton seeds, seeds of forage plants, pasture plants and lawn grass are

also listed at 5% of the product’s value.12 exporters are encouraged to work with their customs broker to

verify customs tariffs at the time of export.

11 USDA FAS GAIN Report: Agriculture Biotechnology Annual Report Republic of South Korea. November 2017 12 Iran’s Custom Rules (Iran Partner)

Table 6. Canada Seed exports to Iran

(Values in $CAD)



0 0 0 0 34,103,001


0 0 0 0 76,992


https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Agricultural%20Biotechnology%20Annual_Seoul_Korea%20-%20Republic%20of_11-14-2017.pdf

https://www.iranpartner.com/iran-customs-rule/

16


On February 5, 2016, Global Affairs Canada amended its sanctions against Iran. There are now no agricultural

goods prohibited by Canada for export to Iran. However, Canada will continue to restrict the export to Iran of

a wide range of other sensitive products. As such, exporters will need to be cautious of the

individuals/entities that they are selling to Iran, as there continues to be a prohibited list of entities and

individuals.

Canada has no formal diplomatic relations with Iran at the time of writing. According to a market study

conducted by the Danish Embassy in Tehran, seed exporters looking to tap the Iranian market will not be

without challenges. The Danish foreign service notes that the agriculture and food market in Iran is heavily

regulated. This is reflected in subsidies for local producers, import quotas, import duties and lengthy licence

and approval processes.13 Another challenge for the seed traders in Iran, is the country’s strict prohibition on

the cultivation of GMO crops. While there has been one crop approved for planting in Iran - Bt rice, the

government took the decision to not commercialize the variety due to the lack of harmonization among

different departments – the Ministry of Agriculture, Environmental Protection Organization.14 Canada’s

ability to segregate non-GM soy could give it a particular advantage in this respect.

Potential for Market Growth

Iran lost out on many agricultural advancements during the sanction period, setting it back from its now

trading partners. The lifting of agricultural sanctions by not only Canada but most notably countries making

up the Joint Comprehensive Plan of Action (JCPOA) - China, France, Russia, the United Kingdom, Germany

and until very recently the United States, marked a new era for growth in Iran’s agricultural sector. At the

time of writing, the US has announced that it will be pulling out of JCPOA and re-imposing economic

sanctions on Iran. While other signatories of the original 2015 international nuclear agreement have restated

their commitment to the deal, The United States exit from JCPOA could have the ripple effect of creating

uncertainty in this market for all investors. The 2015 lifting of sanctions allowed Iran to begin to tap into new

advanced technologies, fertilizers and importantly new seed varieties. Iranian farmers have begun looking for

higher yielding and drought resistant seed. Moisture scarcity is an ongoing threat to Iran and as such the food

sector is looking for ways to reduce consumption of water substantially in agricultural production.15

According to a 2017 USDA Economic Research Service report on the development of trade with Iran, the

lifting of sanctions has also meant new growth in the animal protein market. Iran’s growing poultry beef and

lamb market has created added demand for animal feeds--particularly corn, but also barley, wheat, and soy

meal.16 These should all spell more opportunity for the world’s seed market.

Canadian soybean seed success to date may be due in part to Iranian government programing. The

government of Iran announced a program in June 2017 in conjunction with the Food and Agriculture

Organization, to boost domestic soybean production with the end goal of creating domestic self-sufficiency

for soybean. Iran currently relies on foreign imports to meet 95% of domestic demand (1.5 million tons) for

13 The Royal Danish Embassy in Tehran. Dr. Shariati Ave, Tehran. March 2017 – Report: The Agriculture and Food Market in Iran 14 Biofortified.org: A look at GM policies in different nations 15 The Royal Danish Embassy in Tehran. Dr. Shariati Ave, Tehran. March 2017 – Report: The Agriculture and Food Market in Iran 16 United States Department of Agriculture: A Report from the Economic Research Service, Developments in Iran’s Agricultural Sector and Prospects for US Trade. Mesbah Motamed. July 2017.

https://www.biofortified.org/2015/07/a-look-at-gmo-policies-in-different-nations/

https://www.ers.usda.gov/webdocs/publications/84408/aes-100.pdf?v=42937

https://www.ers.usda.gov/webdocs/publications/84408/aes-100.pdf?v=42937

17

vegetable oils.17 According to the USDA Report, the Iranian Government also implemented a price floor for

wheat, rice, and 18 other crops, which, in many cases, resulted in higher domestic prices paid to producers as

compared to world prices. (USDA, 2017) This incentive should further drive farmers in search of better seed

varieties to boost yields for these crop kinds.

Table 7. provides a

snapshot of Iran’s crop

production in 2015/16 of

various crop kinds. As

discussed, the embargo by

most of the major trading

countries was only lifted in

2015 meaning further

growth in all these

domestic crops should be

expected if the nuclear deal

continues. Again, the US’

newly announced sanctions

on steel, aluminum, coal,

oil, US currency, autos and

a bevy of other embargos

could have a knock-on

effect into agriculture,

reversing Iran’s newfound

GDP growth as quickly as it

started. Given the

increased uncertainty,

exporters will need to

exercise caution in doing

business with Iran. Canadian companies wishing to export to Iran must present the CFIA with a copy of

import permit issued by the plant protection authorities in Iran in order to determine what their import

requirements are, and how / if they can be met. A Phytosanitary Certificate would also be required. While

there is currently no Canadian Embassy in Iran, the Consulate General of Canada in Dubai is offering limited

support to companies wishing to do business in Iran on a case by case basis. Email Infocentre at

[email protected] for more details.

17 Iran Financial Tribune, Iran, FAO kick-start join soybean program

Table 7. Iran Crop Production 2015/16

Category Crop

Under Cultivation (hectare)

Production (tonne)

Cereals Wheat 5,715,616 10,452,87

Oats 1,762,616 2,904,428

Corn 166,163 1,060,162

Other cereals 530,621 2,130,614

Oilseed Beans 712,032 470,443

Sugar beet 105,036 5,075,009

Soya 61,537 126,981

Rape 40,202 53,222

Vegetable Potato 160,217 4,663,495

Tomato 151,946 5,455,031

Cucumber 6,648 1,431,720

Other 206,419 5,607,635

Forage Alfalfa 660,483 5,397.981

Other 41,619 12,469,887

Iranian Ministry of Agricultural Jihad, 2016 as cited by Danish Embassy

Report (converted to metric tonne)

mailto:[email protected]

https://financialtribune.com/articles/economy-domestic-economy/66734/iran-fao-to-kick-start-joint-soybean-program

18

European Union Countries

The following three European Countries appeared in the top 10 Export destinations for Canadian Seed—

Netherlands, Ireland and Italy. They have been grouped together here for ease of use as custom tariff

treatments and non-tariff trade barriers are consistent across all countries given the Canada-European Trade

Agreement.

Netherlands

The Netherlands is the world’s second largest

food exporter next to the United States, an

impressive feat for a country with a small

landmass, half of which, according to the World

Bank, is dedicated to agricultural production.18

The Dutch government set a production target in

the 1990s to “produce twice as much food using

half as many resources”. The country is hitting

these targets through innovation, particularly the

use of huge banks of greenhouses, some sections

covering up to 175 acres according to a 2017

National Geographic feature.19 Likewise, poultry

and red meat production is up to 3.4 billion tons20

further driving the feed sector. All this translates

into opportunity for world seed exporters. FAO

Stats on area harvested in 2016 reveals

opportunity for further exploration in seed sales

of crops such as wheat, sugar beet, barley,

vegetable and maize seed.

In terms of potential opportunities for Canada in the Netherlands, Table 8. is a summary of the Netherland’s

top crops produced measured by area harvested.

18 Tradeeconomics.com : Netherlands agriculture land percentage of land area 19 “How the Netherlands feeds the World” National Geographic. September 2017. 20 Statistica: Fish & Meat production in the Netherlands 2010-2016

Table 8. Netherlands area harvested by

crop kind, 2016


Potatoes 155594

Wheat 127328

Sugar beet 70722

Barley 34428

Onions, dry 32723


11967

Pears 9434

Carrots and turnips

9410

Maize 8424

Apples 7335

FAO Stat

https://tradingeconomics.com/netherlands/agricultural-land-percent-of-land-area-wb-data.html

https://www.nationalgeographic.com/magazine/2017/09/holland-agriculture-sustainable-farming/

https://www.statista.com/statistics/619001/meat-production-in-the-netherlands/

19


Forage and turf seed

crops have

dominated Canada’s

overall seed exports

to the Netherlands

however sales

dropped in 2016/17

to $10.8 million,

down from $18

Million the year

previous. Certified

alfalfa ($3.8 million),

timothy seed ($2.4

million), rye grass

seed ($1.9 million)

and meadow fescue

seed ($1.12million),

made up the bulk of

Canada’s forage exports to the Netherlands in 2017. The drop in overall forage and turf sales in 2017 was

primarily in certified alfalfa which was down by 50% from 2015/16, but most all forage and turf crops saw a

small dip in sales also. There has been extensive discussion within the Canadian seed sector with respect to

the commercialization of Roundup Ready Alfalfa, which received variety registration in Canada in 2013.

Nevertheless, as Statistics Canada stats show, alfalfa sales to the Netherlands and across Europe have

remained reasonably steady over the five-year period. Canada’s seed sector industry experts will continue to

keep an eye on this situation.

Oilseed

Canada’s single largest seed export to the Netherlands is hemp seed which has been on an impressive climb

from just $35,000 in sales in 2012/13 to nearly $4.6 million in 2017. There has been very little other

Canadian oilseed shipped to the Netherlands over the five-year period. Over a $120,000 worth of soybean

seed went to the Netherlands in 2014/15 and 2015/16 and just over $100,000 worth of Canadian flax seed

was sent in 2013/14. This has been the extent of Canada’s experimentation in oilseed in this market.

Pulses

The remainder of Canada’s seed shipments to the Netherlands has been in the pulse crop category. Lentil

seed exports have been consistently in the $400,000 range over the five-year period and hit $700,000 in sales

2015/16. For the first time in 2016/17, Canada saw some sales of chickpea seed to the Netherlands

($151,234).


$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2012/13 2013/14 2014/15 2015/16 2016/17

Figure 4. Canadian Seed Exports to the Netherlands

Forage/Turf Corn Hemp Pulse

20

Vegetable seed

The Netherlands is one of the few markets, outside the US, where Canada has done any business in vegetable

seed, the UK being the only other exception. Canada made shipped $46 thousand worth of vegetable seed

sales (not elsewhere specified) in 2016/17.

In addition to the five-year trend depicted in figure 4. for overall crop kind, table 9 provides a more granular

overview of Canada’s top seed exports to the Netherlands over the five-year period – 2012/13 to 2016/17

broken down by HS code.

Table 9. Canada Seed exports to the Netherlands

(Values in $CAD)


10051010 Yellow dent corn seed (Kilogram)

0 0 0 0 5,353,151

12079910 Hemp seeds, whether or not broken (Kilogram)

35,406 24,159 351,896 3,937,743 4,583,530

12092110

Lucerne (alfalfa) seeds, for sowing, certified (Kilogram)

2,316,050 3,383,246 4,519,897 7,952,535 3,927,293

12092961

Seeds, Timothy grass, for sowing, certified (Kilogram)

5,184,522 4,853,314 4,392,282 3,003,640 2,438,629

12092520 Rye grass seeds, perennial, for sowing (Kilogram)

1,982,860 1,377,959 1,514,552 2,427,471 1,918,889

12092330 Meadow fescue seeds, for sowing (Kilogram)

337,642 526,542 342,107 856,323 1,120,368

12092311

Creeping red fescue seeds, for sowing, certified (Kilogram)

363,416 395,207 791,718 269,611 644,848

7134010

Lentil seeds, of a kind used for sowing, dried, shelled (Kilogram)

0 418,926 464,663 719,731 453,231

12092940 Seeds, Bird's-foot trefoil, for sowing (Kilogram)

827,376 676,241 556,851 423,156 238,582

7132010

Chickpea seeds, of a kind used for sowing, dried, shelled (Kilogram)

0 0 0 0 151,234


21

Custom Tariff

Canadian exporters now benefit from the Comprehensive Economic and Trade Agreement (CETA) between

Canada and the EU having entered provisional application on September 21, 2017. The Netherlands, as a

member of the EU, will give preferential tariff treatment to Canada over other Most Favoured Nations (MFN)

tariff most notably for seed traders in the following areas:

• On durum and non-durum wheat seed, in 2018 is at 111 €/t for Canada diminishing to 0 by 2024 as

compared to 148 €/t for all other MFNs.

• Rye seed for sowing in 2018 is at 69.75 €/t for Canada diminishing to zero by 2024 as compared with

93 €/t for all other MFNs

• Barley seed for sowing went to 0 tariff in year one of CETA implementation as compared with 93

€/1000 kg for all other MFNs

• Oat seed for sowing in 2018 is at 66.75 €/t for Canada diminishing to 0 by 2024 as compared with 89

€/t for all other MFNs.

• Maize seed for sowing went to 0 in year one of CETA implementation as compared with 94 €/1000 kg

for all other MFNs

• Buckweat seed for sowing went to 0 in year one of CETA implementation as compared with 37

€/1000 kg for all other MFNs

• Millet seed for sowing in 2018 is at 69.75 €/t for Canada diminishing to zero by 2024 as compared

with 93 €/1000 kg for all other MFNs.

• Sugar beet seed went to 0 in year one of CETA implementation as compared with 8.3% for all other

MFNs

• Certified Alfalfa went to 0 in year one of CETA implementation as compared to 2.5% for all other

MFNs.


Canada’s most significant non-tariff hurdle with respect to the European market is the EU’s approach to

biotechnology. While much of the world’s markets are striving for science-based decision-making policies,

The EU is the very notable exception to that general spirit and intent. While Canada does not currently export

GM seed for cultivation to the EU, the broader political discussion will continue to have future implications

for Canadian seed exporters. The EU implemented a directive in March 2015 (EU Directive 2015/412) that

allows the EU Member States to restrict or prohibit the cultivation of GMOs in their territory for reasons

other than health or safety. Grounds may be related to environmental or agricultural policy objectives, or

other compelling grounds such as town and country planning, land use, socio-economic impacts, co-existence

and public policy. This Directive allows individual Member States to 'opt out' of cultivation of GMOs that have

been approved at the EU-level and raises concerns with the single market in the EU. The Netherlands was

one of these countries to put conditions on the request.

22

Ireland Ireland is Canada’s number seven overall largest seed export destination and the signing of CETA should

mean good things for Canada’s growth potential in Ireland. In terms of production, eighty-one percent of

Ireland’s agricultural area is dedicated to pasture, hay and grass silage (3.6 million hectares), 11% to rough

grazing (0.5 million hectares) and 8% to crops, fruit and horticulture production (0.36 million hectares). 21

Table 11. provides a more detailed look at Ireland’s largest crops in terms of production and area harvested.

Corn

Ireland is Canada’s number one destination for corn and maize seed outside of North America. Canada

emerged into the Irish corn seed market for the first time in 2016/17. Maize combined with yellow dent corn

resulted in over $12 Million dollars in sales. Ireland has picked up its maize production according to industry

observers. Acreage is up 10% year-over-year due in large part to domestic demand from the country’s

growing dairy cow population. Historically not a good climate for corn maize, Ireland now grows 85% of its

maize crop under plastic sheets. That combined with superior seed genetics is contributing to increasingly

better corn production for Ireland. 22

For a list of government recommended maize forage varieties suitable to Irish climate and farming practices,

visit the following link: Department of Agriculture, Food and the Marine visit the following link: Forage Maize

Varieties Recommended List 2017 CROPS EVALUATION AND CERTIFICATION DIVISION, Agriculture Food and

the Marine.

21 Irish Agriculture Fact Sheet. Government of Ireland. 2017 22 AgriLand: Ireland Farm News Portal

Table 11. Canada Seed exports to Ireland

(Values in $CAD)


10051090 Maize (corn) seed, o/t yellow dent, nes

0 0 0 0 8,177,535

10051010 Yellow dent corn seed 0 0 0 0 3,986,472


410,054 99,395 128,435 230,200 213,000


0 103,102 3779 560,195 77,600

12092961 Seeds, Timothy grass, for sowing, certified

74813 0 75508 0 25,363


https://www.agriculture.gov.ie/media/migration/publications/2017/MaizeRL2017100217.pdf



https://www.agriculture.gov.ie/media/migration/publications/2017/FactsheetIrishAgriculture180117.pdf

http://www.agriland.ie/farming-news/maize-acreage-up-by-10-year-on-year/

23

Oilseeds

Ireland has also served as a small market for Canadian hemp seed, where Canada has done as much as

$410,000 worth of sales in 2012/13 as well as flax seed which reached over a half million in sales in 2015/16.

Custom Tariffs

See the section on “The Netherlands” for specific CETA tariff schedule.


See the section on “The Netherlands” for specifics on non-tariff trade barriers. With respect to the directive

to allows individual Member States to 'opt out' of cultivation of GMOs that have been approved at the EU-

level, Ireland chose not to take the option to 'opt out' of an EU decision on a GM trait.

Italy

Italy’s arable land accounted for 44% of its total

territory according to the World Bank.23 Italy’s

most important crops are maize, wheat,

grapes, tomatoes, olives and sugar beats along

with a variety of vegetables and tender fruits.

Table 12. provides a high-level look at Italy’s

largest crops in terms of overall area harvested.

According to the last 2010 Italian census,

livestock along with feed and commodity crops

such as maize, rice, sugar beats and soybeans

are grown in the northern regions while citrus

fruits, vegetables olives and vineyards typically

grow in the south of Italy.24 Table 12. of Italy’s

overall area harvested by crop kind reveals

opportunity for wheat (a market that Canada

has been active in but to a lesser extent in

recent years), maize, soybeans, barley and

vegetable seed.

Corn

Yellow dent corn was Canada’s single largest

seed export to Italy in 2017. Similar to the Irish market, Canada made very little sales of corn seed to Italy

before taking off in 2016/17 hitting $5.7 million in sales. FAO stats puts Italy’s overall corn production at close

to 7 million tonnes in 2016.

According to a Special US GAIN Report, on March 30, 2017, the European Court of Justice ruled that Italy was

unlawful in banning the cultivation of GE maize (Monsanto’s MON 810 was approved by the EU in 1998).

23 Tradingeconomics.com “Italy agricultural land percentage of land area.” 2018 24 Italy National Institute of Statistics 2010

Table 12. Italy area harvested by crop kind,

2016


Wheat 1,912,418

Olives 1,165,562

Grapes 668,087

Maize 660,727

Soya beans 288,060

Barley 246,370

Rice, paddy 234,133


135,036

Sunflower seed 110,716

Oats 107,059

Tomatoes 103,940

Oranges 84,426

Hazelnuts, with shell

75050

FAO Stat

https://tradingeconomics.com/italy/agricultural-land-percent-of-land-area-wb-data.html

24

Unless a member state can produce significant evidence that GMOs are a serious risk to human or animal

health or the environment, the court has ruled member states cannot adopt emergency measures to prohibit

their use.25 This decision should bode well for Canada’s market access going forward.

Pulse

Italy’s pulse market is showing good promise for Canadian pulse seeds. Non-specified bean seed sales have

hovered around the $1.5 million market but have been as high as $2.9 million over the five-year period. Lentil

seeds have seen steady growth in sales for Canada, shipping close to 2 million tonnes ($1.39 Million) in

2015/16.

Wheat

Canadian sales of durum wheat have been spotty in Italy, hitting a very significant high of $12.7 million in

2014/15 compared with no sales in other years throughout the five-year period. Canada shipped a total of

431,000 kg ($697,850) in 2016/17. Of important note, Canadian shipments of durum wheat (not seed for

sowing) have slowed to a halt since Italy announced in July 2017 that it was introducing country-of-origin-

labelling on pasta.

Oilseeds

Italy depends on soy imports for animal feed for the dairy and livestock sector. While the majority of the

product the country imports is biotech, Italy remains generally hostile to GE crops.26 Canada shipped little to

no soybean seed to Italy over the course of the five-year period. Canada’s ability to segregate GE crops may

present opportunity in this regard.

The growth trend of Canadian hemp seed sales is also seen in Italy, with one year at close to $700,000 in

2015/16 up from $100,000 in 2013/14 when Canada made its first sales of hemp seed to Italy.

Forage and Turf seed

There has been modest to strong sales of Canadian forage and turf to Italy over the five-year period driven by

alfalfa seed sales, hitting $1.5 million in a single year in 2015/16. Canada has also shipped bird’s foot trefoil,

rye grass, white clover and tall fescue seed to Italy.

The following figure provides a snapshot of the five-year trend on Canada’s exports to Italy, organized by

overall crop kind sales.

25 USDA GAIN Report: Italian Farmer Fights for Right to Cultivate GE Maize 26 USDA GAIN Report Agricultural Biotechnology Annual 2017

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Italian%20Farmer%20Fights%20for%20Right%20to%20Cultivate%20GE%20Maize%20MON810_Rome_Italy_6-1-2017.pdf

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Agricultural%20Biotechnology%20Annual_Rome_Italy_10-26-2017.pdf

25

The following table provides a more detailed look at Canada’s sales to Italy, broken out by specific HS codes.


$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2012/13 2013/14 2014/15 2015/16 2016/17

FIgure 5. Canadian Seed Exports to Italy by Crop Kind

Corn Pulses Forage/Turf Wheat Hemp

26

Custom Tariffs

See the section on “The Netherlands” for specific CETA tariff schedule.


See “The Netherlands” for specifics on non-tariff trade barriers. With respect to the directive to allows

individual Member States to 'opt out' of cultivation of GMOs that have been approved at the EU-level, Italy

was one of the countries that chose to ‘opt out’ of EU decisions. Italy applies a “zero tolerance” for

adventitious presence of GE seeds in conventional lots. For technical purposes, the tolerance level is 0.049

percent, or the minimum detectable level. The Italian Ministry of Agricultural and Forestry Policies (MIPAAF)

is responsible for controls on GE seed. Further information can be found in the USDA FAS Food and

Agricultural Import Regulations and Standards – Narrative Report December 2017 found here.

Table 13. Canada Seed exports to Italy

(Values in $CAD)


10051010 Yellow dent corn seed 0 53,077 60,737 0 5,661,315


0 2,899,795 1,191,306 1,106,087 1,575,520


0 146,683 763,445 1,393,870 900,477

10011100 Durum wheat, seed for sowing

0 0 12,687,126 0 697,850


0 99,999 185,041 698,640 614,160

12092940 Seeds, Bird's-foot trefoil, for sowing

789,702 0 291,648 1,032,331 584,558


337,021 63,607 46,495 133,060 418,259


0 1,229,565 1,488,634 1,5209,09 213,285

12092240 White clover seeds, for sowing

0 0 0 0 158,432

12092320 Tall fescue seeds, for sowing

89,303 107,581 97,688 110,999 148,287


https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20-%20Narrative_Rome_Italy_12-14-2017.pdf

27

Japan Japan is an important market for Canadian soybean seed but is showing potential for growth in other seed

crops particularly in the grass and forage seed category. The following table is a summary of Canada’s top

exports to Japan over the five-year period.

Oilseeds

Soybean has consistently been the single largest seed export from Canada to Japan reaching $12 million in

sales in 2016/17 following an unusually low sales year of just $624,508 in 2016/17. In 2016 the Government

of Japan started a program to divert farmers away from rice production into soybean, wheat and feed crops.

This bodes well for Canada’s seed prospects in this market. Through financial incentives to farmers, the

program reached its intended goal in 2015/16 and 2016/17 of 150,000 ha in total planted. However,

insufficient soybean yields kept Japan from reaching its production target. Japanese growers are typically

looking for soy varieties that are resistant to wind and rain which has the side effect of being lower yielding.

(source: USDA Gain Report: Japan Oilseed Annual 2018).

Pulses

Canada’s remaining seed exports into Japan are relatively very small by comparison to soybean exports.

Under the pulse category, adzuki bean seed shipped from Canada to Japan for the first time in 2016/17

earning just over $500 thousand in sales. There have also been small sales of bean seed (not elsewhere

specified) over the course of the five-year period. With the advent of adzuki seed sales to Japan, there may

be potential for other traditional bean crop seed sales.


$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2012/13 2013/14 2014/15 2015/16 2016/17

Soybean Pulses Buckwheat Grass/turf Hemp

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Oilseeds%20and%20Products%20Annual_Tokyo_Japan_4-2-2018.pdf

28

Wheat

Japan is one of the few markets, other than the US, where Canada has done any buckwheat sales. Buckwheat

sales to Japan have been on a relatively steady trend up, reaching close to $700,000 in 2016/17 putting it in

the number two spot for overall Canadian seed sales to Japan. Wheat is Japan’s second largest crop in terms

of seeded acres to which Canada has contributed no seed over the last five years.


Forage and turf seed make up the remainder of Canada’s overall sales to Japan totalling $639,556 in 2016/17

yet sales have been close to the $1 Million mark in previous years. Non-certified creeping red fescue seed has

had the largest sales in this crop category, reaching a high of $512,191 in 2015/16.

Table 14. provides a more granular breakdown of Canada’s sales to Japan, organized by specific HS code.

Table 14. Canada Seed exports to Japan

(Values in $CAD)

HS Code

Description 2012/13 2013/14 2014/15 2015/16 2016/17


6,163,553 5,871,425 1,000,025 624,508 12,017,906

10081000 Buckwheat seed 165,854 12,298 95,051 671,931 684,437

7133210

Small red (Adzuki) bean seeds, of a kind used for sowing, dried, shelled

0 0 0 0 506,489


0 155,407 0 146,795 263,353

12092319 Creeping red fescue seeds, for sowing, o/t certified

142,176 96,594 306,413 512,191 248,843


102,732 159,889 521,660 1,454,466 163,837


83,854 119,608 143,751 163,976 134,230


27,969 0 0 0 117,260

12092510 Rye grass seeds, annual, for sowing

0 24,822 0 0 97,249


29

Seed Production in Japan

Close to 1.5 million ha of Japanese land is dedicated

to rice paddy production. Japan also produces a

small green maize crop of 23510 ha. The balance of

Japan’s arable land is dedicated to a diverse cross

section of fruit and vegetable seed. This is again an

area where Canada has not been active in terms of

seed sales.

Table 15. gives a snapshot of Japan’s top crops in

terms of area harvested.

Custom Tariffs

Assuming ratification of the Comprehensive and

Progressive Trans Pacific Partnership (CPTPP),

Canada as a CPTPP partner will be given duty free

access into Japan on both durum wheat seed and

non-durum wheat and meslin, as compared to non-

CPTPP members who will face 65 yen/kg duty on

these products. All other seed products are already

duty free into Japan. Canada and 10 other pacific

rim countries signed on to the CPTPP on March 8,

2018. At the time of writing, the deal is not yet in

force which requires ratifying legislation of at least

six countries.


With respect to non-tariff trade barriers, Japan does

not issue import permits and has no commodity-

specific import requirements other than freedom from soil, ergot and sclerotia in all imports for which the

Japanese government establishes tolerance levels. This means the CFIA can certify seeds of any crop kind

provided it meets Japan’s import tolerances for soil, ergot and sclerotia. Over the past three years, CFIA has

issued phytosanitary certificates to Japan for corn, rye, wheat, chickpeas, barley, buckwheat, soybeans,

lentils, sorghum, and forage seeds (fescues, ryegrass and timothy). As such, general market access can be

assumed on all these crops.

A positive result stemming from the signing of CPTPP for Canadian and other CPTPP partners looking to tap

into the Japanese market was the abolishment of the Japanese 1952 Seed Law which the Japanese

government scrapped in advance of TPP negotiations in 2017. This law gave the legislative backing for seed

experiment stations which annually recommended seeds to Japanese farmers and set the budget to help

subsidize domestically grown seed to farmers. With these stations gone, the door is opened to more seed

imports from other countries. 27

27 The Japan Times “TPP sows fear in Japan’s agriculture industry” Nicole Freiner. January 8, 2018

Table 15. Japan area harvested by crop

kind, 2016

Crop Kind Area Harvested / ha

Rice, paddy 1479000

Wheat 214400

Soya beans 150000


117216

Potatoes 69178

Barley 61390

Buckwheat 60600

Sugar beet 59700

Tea 44078

Tangerines, mandarins, clementines, satsumas

41500

Apples 36800

Sweet potatoes

36000

Cabbages and other brassicas

33657

Beans, dry 29800

FAO Stats

https://www.japantimes.co.jp/opinion/2018/01/08/commentary/japan-commentary/tpp-sows-fear-japans-agriculture-industry/#.Wt5oyojwY2w

30

Turkey

Turkey is emerging as a market of broad interest to Canadian industries. It is also on Canada’s top 10 list of

seed exports in 2016/17 coming in at number nine.

Canada’s bilateral merchandise trade hit close to $2.5 billion in 2016, making Turkey Canada’s 24th largest

trading partner according to Global Affairs Canada.28 The Government of Canada has in general expressed

interest in encouraging and facilitating further trade with Turkey, a signal that Canadian sectors should look

for further opportunities in this emerging market.

Turkey implemented a new subsidy program for agricultural products in 2017, called the National Agriculture

Project. The project is intended to diversify Turkey’s agricultural production, increase productivity and reduce

the planted area of water-intensive crops such as rice and corn in drought-prone areas.29 This should have

the effect of sending producers in search of better more drought resistant varieties of seed.

Turkey is one of the few countries considered self-sufficient in terms of food production and grows a broad

range of crops due to its variety of climates. This should translate into continued opportunity for a broad

variety of Canadian seed going forward. Table 16. provides a snapshot of Turkey’s top 15 crops by area

harvested in 2016.

Cereals

Turkey’s wheat market holds high potential in

that the country is both a top 10 producer and a

top 10 consumer of wheat in the world. Turkey is

also ranked as the top flour exporter in the world

according to the 2017 USDA GAIN report on Food

and Seed. Canada sent 2.5 million tonnes of

wheat seed to Turkey for the first time in

2016/17 but has otherwise not experimented in

the Turkey wheat market. Barley is likewise a

growing crop in Turkey with 2.7 million ha

harvested in 2016.30 Canada however has made

no barley seed sales to Turkey in the last five

years.

Pulse

Turkey is the main pulse producer in the Middle

East and one of the leading producers in the

world and while pulse production has been

declining some in recent years, Turkey’s pulse

market holds promise. Canada shipped nearly

28 canadianinternational.gc.ca “Canada Turkey Relations”.2018 29 USDA GAIN Report: Turkey Grain and Feed Annual Report 2017 30 FAO Stat

Table 16. Turkey area harvested by crop kind,

2016

Seed Crop Area Harvested / ha

Wheat 7,609,868

Barley 2,700,023

Olives 845,542

Sunflower seed 718,317

Maize 679,537

Hazelnuts, with shell

436,869

Grapes 435,227

Seed cotton 416,002

Chick peas 351,687

Sugar beet 321,953

Lentils 246,322

Tomatoes 188,270

Apples 173,394

Potatoes 144,706

FAO Stats

31

$4.8 million worth of bean seed (not elsewhere specified), $1.42 million worth of lentils and nearly $400

thousand worth of chickpea seed to Turkey in 2016/17.

Oilseeds

Turkey’s top oilseed crops in terms of area harvested are olive, sunflower and cotton. The Government of

Turkey has tried to incentivize oilseed production through subsidization including soybean with limited

success. According to a 2017 USDA GAIN report, industry observers note that Turkey’s feed sector is growing

at “a remarkable rate” putting oilseed meal in high demand. Soybean production is expected to be 22,000

hectares and 85,000 MT in 2018/19.31 Canada has had no soybean seed sales to Turkey in the last five years.

Canada made small $200 and $300 thousand shipments of hempseed to Turkey in 2015/16 and 2016/17

respectively. Turkey has grown hempseed for thousands of years, it is a staple used for rope, caulking,

birdseed, paper and fuel.

A small 1,995 kg of Canadian canola seed went to turkey in 2017, likely for research purposes.

Table 17. below summarizes Canada’s seed exports to Turkey by HS code over the five-year period

represented in Canadian dollar.

31 USDA Gain report; Turkey Grain Feed Annual 2018

Table 17. Canada Seed exports to Turkey

(Values in $CAD)



0 1,752,178 1,109,527 1,398,411 4,990,708


195,814 104,103 3,030,011 2,663,023 986,595


94,646 594,195 360,933 1,276,288 767,360

10011100 Durum wheat, seed for sowing

0 0 0 0 548,743

7132010 Chickpea seeds, of a kind used for sowing, dried, shelled

0 0 0 185,571 343,050


0 0 0 173,248 302,234


329,391 61,822 60,945 0 171,458

12092311 Creeping red fescue seeds, for sowing, certified

82,700 180,834 192,688 112,014 49,089

10082100 Millet, seed for sowing 0 7,138 0 0 15,689

12051010 Low erucic acid rape or colza seeds, w/n broken, for sowing

0 0 0 0 2,605


32

Custom Tariffs

Canada is at a tariff disadvantage to European Union countries who enjoy a free trade agreement with

Turkey. The Ankara Agreement, which was signed in 1995, establishes a custom union between Turkey and

the European Union which means all goods may travel between the two entities without any customs

restrictions.32


Likely the most serious of non-tariff trade barriers that Turkey presents for Canadian seed shippers is its zero

tolerance on GE traits. According to a 2018 GAIN Report, even low-level traces of GE events are punishable

by severe prison terms and fines. For example, a 2015 low level presence incident in a pulse shipment to

turkey caused an exporter significant financial loses.

According to the Canadian Food Inspection Agency records, Turkey's National Plant Protection Organization

(NPPO) does not issue import permits, although the CFIA has record of a few phytos issued specifically for

seed. Turkey also maintains annexes to their plant protection regulations including a quarantine pest list and

a list of special import requirements for a number of plant species. In the event that the CFIA receives a

request for import requirements from an interested seed exporter for a given commodity not previously

exported, the CFIA would review Turkey's available legislation, ask the exporter to work with the importer to

confirm import requirements with Turkish plant health authorities, and potentially work through the Trade

Commissioner in Turkey to ask for clarification of Turkey's import requirements.

For a comprehensive resource on Turkish requirements for food and agricultural products imports, visit the

USDA Food and Agricultural Import Regulations and Standards – Narrative 2017 for Turkey.

32 Decision No 1/95 of the EC-TURKEY Association Council

https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Food%20and%20Agricultural%20Import%20Regulations%20and%20Standards%20-%20Narrative_Ankara_Turkey_12-28-2017.pdf

http://trade.ec.europa.eu/doclib/docs/2003/december/tradoc_115267.pdf

33

United Kingdom

As of June 2016, 71% (17.4 million hectares) of the

United Kingdom land was dedicated to agricultural

holdings. This area is made up of arable and

horticultural crops, uncropped arable land, common

rough grazing and temporary and permanent

grassland. Fifty-two percent of croppable area was

planted as cereal crops. Wheat and barley were the

predominant cereal crops at 1.8 and 1.1 million

hectares respectively.33 Table 18. is a snapshot of

the United Kingdom’s top 15 crops harvested by

hectare in 2016 according to FAO Stats.

For Canadian seed exporters, the UK is a well-

developed market with exports to almost all of the

crop kind categories.

Corn:

The United Kingdom made it onto Canada’s top list

of top 10 country seed destinations due in large

part to maize seed sales combined with a small

$21,127 of yellow dent corn. Having never made

sales to the U.K before, Canada shipped 20.5 million kilograms ($4.32Million worth) of maize seed to the U.K

in 2016/17.

Cereals

Given wheat is the UK’s number one crop, this may be an area of interest for Canadian wheat seed exporters.

UK millers supply more than 80% of their wheat from domestic UK farmers amounting to 5 million of the 14-

15 million kilograms of wheat grown in the UK annually. Most of the wheat grown in the UK is winter

wheat.34

Also at the top of the list in terms of UK seeded acres according to FAO stats is barley but again, no Canadian

barley seed was shipped from Canada over the past five-year period. Canada’s grain sector is currently

working through options to modernizing its approach to malt barley seed variety commercialization and

acceptance which, if accepted, should result in quicker adoption of new varieties. This should have the

benefit of giving Canadian seed exporters quicker access to new malt barley varieties to offer the UK’s large

malt barley market.

33 Agriculture in the United Kingdom. 2016. Department of Agriculture, Environment and Rural Affairs. 34 www.grainchian.com a partnership of the UK Agriculture and Horticulture Development Board, flabflour and the Federation of Bakers.

Table 18. UK area harvested by crop kind,

2016


Wheat 1,823,000

Barley 1,122,000

Rapeseed 579,000

Oats 141,000

Potatoes 139,000

Sugar beet 86,000

Broad beans, horse beans, dry

75,351

Pulses, nes 67,674

Peas, dry 51,600

Peas, green 35,544

Linseed 27,000

Rye 25,913

Apples 16,512

FAO Stats

http://www.grainchian.com/

34

Oilseed

Canada’s sales of hemp seed to the UK have been steadily climbing over the five-year period, starting with a

small 19,867 kilograms of seed shipment in 2012/13, sales have grown to 760,214 kilograms in 2016/17 at

$1.8 million dollars.

Beyond hemp, Canada has made no real inroads into the UK oilseed market. Non-GM rapeseed is gaining

popularity in the UK as a cooking oil and livestock farmers have been looking more to rapeseed meal as an

alternative to their traditional choice of wheat. However, yields and seeded acres have been declining slightly

in the last few years after reaching a record high in 2012 of 756 thousand hectares according to the UK

Department of Agriculture, Environment and Rural Affairs.

The UK, for the most part is not growing soybean domestically and has imported limited amounts. The UK

Food Standard Agency Website notes that approximately 20% of the feed materials used in the UK are

imported from outside the EU, as the quantity of home produced feed is insufficient to meet demand.

Soybeans and soybean meal from North and South America, and maize gluten feed from the USA, are the

principal imported feed materials.35

Canada has had steady and growing success with flax seed in to the UK, making $768,860 worth of sales in

2016/17, its best year to date.


The UK has been a relatively reliable market for timothy seed while sales have been down slightly to

$345,370 in 2016/17 from $725,051 in 2014/15. Canada made very small sales of rye seed and kentucky seed

in 2016/17 but otherwise has not done any business in the British forage and turf market over the course of

the five-year period.

Vegetable seed

The UK is one of the few markets, outside the US, where Canada has done any business in vegetable seed.

Canada made $233,957 worth of vegetable seed (not elsewhere specified) sales in 2016/17. The Netherlands

is the only other market destination where Canada has made any significant vegetable seed sales.

Pulse

Canada has made very little sales of pulses to the UK market, not surprisingly, as they are not widely grown

domestically. Nevertheless, Canada did make a relatively large 240,884 kg shipment of lentil seed in 2014/15

worth $170,160 a and 62,100 kilograms of lentil seed in 2016/17 which fetched a total of $186,944.

Table 19. provides a detailed look at Canada’s seed sales to the UK broken out by HS code over the five-year

period.

35 https://www.food.gov.uk/business-industry/farmingfood/animalfeed/what-farm-animals-eat

https://www.food.gov.uk/business-industry/farmingfood/animalfeed/what-farm-animals-eat

35

Tariffs and non-tariff trade barriers

On 23rd of June 2016, the UK voted in a referendum to leave the European Union (EU). This has implications

for Canada-UK relations given the Canada EU Free Trade Agreement recently entered into force. The

Canadian and British government’s have indicated that CETA will form the basis of the bilateral trading

relationship after the UK leaves the EU. At the time of writing, specific details are being worked out. For the

purpose of this report, assuming the UK follows the CETA tariff schedule, Canadian seed exporters can hope

to continue to enjoy preferential access in to the UK on a variety of products. **See the Netherlands section

for a full list of tariff lines for which Canada will have preferential access.

Likewise, assuming similar treatment post Brexit, exporters can continue to expect resistance to GE crops in

the UK. The UK in particular was one of the countries that ‘opted out' on regional bases, specifically to give

autonomy to Scotland, Wales and Northern Ireland on GE variety registration decisions.

Table 19. Canada Seed exports to the United Kingdom

(Values in $CAD)


10051090 Maize (corn) seed, o/t yellow dent, nes

0 0 0 0 4,321,250


232,846 590,446 732,095 802,368 1,844,665


0 400,103 250,654 476,970 768,860


542,156 607,109 725,051 315,761 345,370

12099100 Seeds, vegetable, nes for sowing

160,000 51,971 168,008 89,287 233,957


0 125,550 170,160 0 186,944

10021000 Rye, seed for sowing 0 0 0 0 55,359

10051010 Yellow dent corn seed 0 0 0 0 21,127

10082100 Millet, seed for sowing 11,438 14,222 0 6,497 11,550

12092400 Kentucky blue grass seeds, for sowing

0 0 0 0 3,080


36

Emerging Markets

As previously noted, the authors have identified and profiled China, Iran and Turkey as not only top 10

destination markets for Canadian seed exports but also as “emerging” markets which are showing signs of

potential growth for the seed sector. A high-level analysis of past sales has also revealed the following

countries for potential further development.

India

India is being heralded as the next frontier for

economic growth but the agriculture sector in

India is not without its challenges. Climatic

factors, most notably unreliable monsoons that

don’t provide the rain that arable land depends

on combined with insufficient upfront capital

resulting in slow adoption to farming innovations,

all present Indian farmers with major hurdles.

Moreover, the current minority Government now

entering an election cycle at the time of writing,

has meant slow and disjointed regulatory

approvals for lack of parliamentary consensus on

important bills.36 Nevertheless, India cannot be

discounted as a growing powerhouse if, for no

other reason, then the sheer size of the

population in demand of food. Canadian seed

exporters have already started to tap this market

particularly in pulses. Canada did $2.8 million

worth of lentil seed sales in 2017, a steady climb

from $634 thousand in 2013/14 which was the

first year for Canadian lentil sales. Likewise, pea

seed shipments to India reached over $2.6

million in 2017 and a small portion of Canadian

chickpea seed hit the Indian market in 2015/16 at

$148 thousand worth and close to half a million

in 2016/17. Pulse seed is an obvious choice for

exporters and will continue to be a safe bet going

forward as industry observers report changing dietary patterns in India where rice and wheat were

historically the main calorie source, Indians are now looking to lentils and peas as cheaper protein

alternatives to meat. 37 That said, an examination of India’s top crops harvested (see Table 20) reveals

opportunities in other crops and wheat, soybean, maize and rapeseed for example should not be discounted.

36 Reporting Magazine “Remerging India” Ernst& Young.2016 37 Pulses for nutrition in India: Changing patterns from farm to fork. Devesh Roy, Ed., Pramod Kumar Joshi, Ed., Raj Chandra, ED. 2017. Pg 284.

Table 20. India area harvested by crop kind,

2016


Rice, paddy 42,964,980

Wheat 30,230,000

Soybeans 11,500,000

Seed cotton 10,500,000

Maize 10,200,000

Beans, dry 9,466,833

Millet 8,840,000

Chick peas 8,392,652

Rapeseed 5,762,000

Sorghum 5,650,000

Sugar cane 4,950,000

Pigeon peas 3,884,886


2,512,285

Potatoes 2,130,000

Pulses, nes 2,039,323

Sesame seed 1,900,000

Fruit, fresh nes 1,605,299

Lentils 1,548,106

Onions, dry 1,199,850

Peas, dry 1,100,452

FAO Stats

http://www.ey.com/Publication/vwLUAssets/EY-emerging-markets-reimagining-india/%24FILE/EY-emerging-markets-reimagining-india.pdf

37

Soybean has been grown in India for centuries but has been gaining in importance in recent decades. Given

many Indians follow a vegetarian diet, soy has taken on an important profile for those seeking meat and dairy

alternatives. 38 Just over 30 million hectares of soy were harvested last year.

As the number two crop in terms of acres harvested in India, wheat will remain an important dietary staple

for Indians going forward. Canada did not ship any wheat seed over in the last five years to India. The

German based flour company, Muehlenchemie has compiled a list of wheat seed characteristics in demand in

India which can be found here.39

There is also significant opportunity in India’s oilseed market where oil is a very important staple. Indian

rapeseed-mustard is the single largest source of domestically produced edible oil and while genetically similar

to canola, the fact that its not “double zero” (it contains both glucosinolates and erucic acid) it has a more

pungent taste which Indian’s expect and historically prefer.40 Nevertheless, superior genetic properties of

38 Soy Info Centre 2018 39 "Future of Flour" The comprehensive manual of practical information on cereals, flour and flour improvement. Mühlenchemie Flour. 2018 40 Agriculture and Horticulture Development Board (AHDB) United Kingdom. Cereals and Oilseeds. India’s evolving

vegetable oil and oil meal trade balance, February 9, 2016

Table 21. Canada Seed exports to India

(Values in $CAD)


7134010

Lentil seeds, of a kind used for sowing, dried, shelled

0 633,884 674,333 2,052,849 2,842,008

7131010 Pea seeds, of a kind used for sowing, dried, shelled

0 208,256 128,682 89,263 2,597,869

7132010

Chickpea seeds, of a kind used for sowing, dried, shelled

0 0 0 148,177 501,803

12051010 Low erucic acid rape or colza seeds, w/n broken, for sowing

0 33,265 0 0 318,993

7135010

Broad bean and horse bean seeds, of a kind used for sowing, dried

0 0 0 56,851 132,289

10031000 Barley seed 0 0 0 0 21,154

12091000 Sugar beet seeds, for sowing

0 0 0 14,000 10,000


http://muehlenchemie.de/downloads-future-of-flour/FoF_Kap_09.pdf

http://www.soyinfocenter.com/HSS/indian_subcon1.php

http://muehlenchemie.de/english/know-how/future-of-flour.html

http://muehlenchemie.de/english/know-how/future-of-flour.html

38

Canadian canola seed may be reason enough to convince some farmers to switch. Indeed, Canada has

already experimented with $318,993 worth of sales in 2016/17.

As Table 21 above shows, the majority of Canada’s seed to India to date has been in the pulses – lentils, pea

seed, chickpeas and broad beans but there may be some further opportunity for canola. Interestingly, India

took $21,000 worth of barley seed last year, albeit a small amount, it is noteworthy given Canada doesn’t

typically sell any barley seed outside of North America.

Spain Spain is Western Europe’s leading producer of olive

oil and has the largest area of land dedicated to

vineyards. Spain is also associated with citrus fruit

and orchard crops. It may be surprising therefore to

find that cereals crops such as barley and wheat are

also sitting at the top of the list in terms of total acres

harvested according to FAO stat numbers (see table

22). Seed exporters may also find opportunity in oats,

maize, rye and potentially canola.

The authors have identified Spain as an emerging

market in particular due to Canada’s sales in pulse

seed to this country. Seen as an affordable protein

staple, lentils, beans and peas make up an important

part of Spanish traditional dishes. Canada has started

to tap this market as Table 23 will show. Lentil seed in

particular has seen steady growth, reaching $4.7

million worth (4,095,151 kg) in 2016/17. While not on

FAO’s list of top crops by area harvested, Spain

produced 29.3 million tons of lentils in 2016 and 18.3

million in 2017.41

Likewise, bean sales last year came in just under $1

million. Canada is Spain’s second-largest supplier of

pulses in the world worth US$43.8 million in 201642.

A growing interest in Canadian pulse varieties might

suggest opportunity for increased interest by Spanish

41 Statistica Stats Portal. Annual Volume of lentils produced in Spain 2014-2017 42 Agriculture and Agri-Food Canada. Snapshot of Opportunities in Spain’s Pulse Sector.

Table 22. Spain area harvested by crop

kind, 2016

Seed Crop Unit Area Harvested / ha

Barley 2,800,628

Olives 2,573,473

Wheat 2,078,115

Grapes 920,108

Sunflower seed

689,789

Almonds, with shell

544,518

Oats 468,285

Maize 384,608

Triticale 203,101

Peas, dry 174,034

Tangerines, mandarins, clementines, satsumas

164,040

Rye 157,230

Oranges 151,487

Rice, paddy 110,609

Peaches and nectarines

86,896

Rapeseed 75,510

FAO Stats

https://www.statista.com/statistics/461325/lentils-production-volume-spain/

http://www.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/pulse_opportunities_spain_possibilites_dans_secteur_legumineuses_lespagne_aug_aout_2017-eng.pdf

39

farmers to grow Canadian pulse seed domestically. Table 22. provides an overview of Spain’s top crops in

terms of area harvested.

Custom Tariffs

As Spain is a member of the European Union, Canadian exporters would enjoy preferential access into the

Spanish market under the Canada-EU Trade Agreement (See section on the Netherlands for more detail).

Table 23. Canada Seed exports to Spain

(Values in $CAD)


7134010

Lentil seeds, of a kind used for sowing, dried,

shelled

0 2211719 609929 3164386 4672507

7133910

Kidney bean seeds, of a kind for

sowing, dried, shelled, nes

0 1671117 961118 388141 937517

12092520 Rye grass seeds,

perennial, for sowing

80238 38793 137941 147216 395662

12092510 Rye grass seeds,

annual, for sowing 30319 0 0 0 133224

12079910 Hemp seeds,

whether or not broken (Kilogram)

0 0 0 205661 114945

7132010

Chickpea seeds, of a kind used for sowing, dried,

shelled

0 0 44851 147630 57445

12051010

Low erucic acid rape or colza seeds,

w/n broken, for sowing

0 0 0 0 33778


40

Colombia

Canada has begun with relatively smaller amounts

of seed sales to Colombia, but the diversity in seed

crops that Canada has been shipping to Colombia is

a promising sign for future activity.

An unusually large amount of wheat (other than

durum) seed went to Colombia in 2015/16 earning

over $11 million for Canadian seed exporters. That

is particularly noteworthy given there were no

Canadian wheat sales the years previous or the year

following. Colombian wheat production, at just 1685

acres harvested in 2016, is a relatively small crop for

Colombia compared to its staple crops -- coffee and

rice which, for comparison saw 865,889 ha and

520,779 ha respectively harvested in the same year.

Table 24 shown here contains a table break for ease

of use. Wheat is in fact number 51 in terms of

overall area harvested in Colombia. Nevertheless,

these high wheat sale numbers in 2015/16 suggests

there may be further opportunity in wheat seed to

be explored.

Pulse crops such as lentils have returned as high as

over half a million in total sales in some years over

the five-year period and nearly a million dollars

worth of Canadian bean seed was shipped in 2014/15 and 2015/16. A relatively small amount of chickpeas

went to Colombia in 2016/17, coming in at just over $180 thousand worth.

Rye grass seed is the only forage and grass crop Canada has shipped to Colombia, consistently holding at

between $200 and $500 thousand worth of sales over the five-year period.

In the oilseed category, Canadian seed shippers have sent only very small portions of non low-erucic rape

seed over the five year period and flax seed sales have been on a relative trend upwards with a high in

2015/16 of $269 thousand worth of sales.

Table 25 gives a detailed breakdown of Canada’s exports to Colombia over the five-year period broken out by

HS code.

Table 24. Colombia area harvested by crop

kind, 2016


1 Coffee, green 865,889 2

Rice, paddy 520,779

3 Sugar cane 416626 4 Plantains and

others 404550

5 Maize 375742 6

Oil palm fruit 331506

7 Cassava 210250 8

Cocoa, beans 165844

9 Potatoes 121920 10 Beans, dry 120990 -- ---------------- 51 Wheat 1685

FAO Stat

41

Tariff and non-tariff trade barriers

Canada has signed a free trade deal with Colombia, which came into force in August 2011.This puts Canada at

tariff advantage over other trading partners wishing to ship seed to Colombia in the following areas:

Table 25. Canada Seed exports to Colombia

(Values in $CAD)

HS code Description (abbreviated) 2012/13 2013/14 2014/15 2015/16 2016/17

7134010 Lentil seeds, of a kind

used for sowing, dried, shelled

0 550,062 554,009 217,045 311,824

12092510 Rye grass seeds, annual,

for sowing 332,412 212,158 298,653 411,905 196,800

7132010 Chickpea seeds, of a kind used for sowing, dried,

shelled 0 0 0 0 181,219

12040010 Linseed, w/n broken, for

sowing (Kilogram) 0 20,701 138,321 269,084 108,679

10082100 Millet seed for sowing 0 0 130,096 123,600 70,122

12051010 Low erucic acid rape or

colza seeds, w/n broken, for sowing

0 0 0 0 38,453

12059010 Rape or colza seeds, o/t

low erucic acid, w/n broken, for sowing

0 0 0 0 6,371

7133910 Bean seeds, nes, of a kind

used for sowing, dried, shelled

0 0 924,324 968,827 0

7139010

Leguminous vegetable seeds,of kind f

sowing,dried,shelled,w/n skinned/split,nes

0 0 21,437 0 0

10019100 Wheat and meslin, other

than durum, seed for sowing

0 0 0 11,311,464 0


42

• A 5% advantage over Most Favoured Nations (MFNs) on lentil seed, dried shelled, whether or not

skinned (HS 071340100), chickpeas (HS 0713.20.10) and bean seed (other) (HS 0713311). Under the

Canada-Colombia FTA, tariffs on these products went to zero for Canada 2017

• A 5% advantage over MFNs on oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit;

industrial or medicinal plants; straw and fodder seeds, fruit and spores, for sowing (HS

1209.25.00.00) as well as a 5% on linseed (HS 1204.00) and a 10% advantage of MFNs on canola seed

for sowing). Under the Canada-Columbia FTA, tariffs on these products went to zero for Canada 2017

• A 5% advantage over MFNs on wheat seed – durum (HS 1001110000) and non-durum (HS100191)

seed and meslin. Under the Canada-Columbia FTA, tariffs on these products went to zero for Canada

2017

The agreement also includes a commitment to “ensure that the (two countries’) sanitary and phytosanitary

measures do not create unjustified barriers to trade”. This has already proven critical for grain, seed, straw,

hay, chaff and/or screenings of wheat, barley, rye, oats and triticale bound for Colombia. The Colombia

government previously held restrictions on Canada to control for the spread of dwarf bunt, known to infest

crops in British Columbia’s Central Kootenay and North Okanagan regional districts and part of the Columbia

Shuswap district, and has been seen in wheat crops in Ontario counties bordering Georgian Bay and Lake

Huron. Colombia eased phytosanitary import rules for these Canadian products in 2015.

Canadian Seed Imports

Canada imported $637.2 million worth of seed in 2016/17. Import sales have grown modestly over the five-

year period, starting at $425.1 million in 2012/13. The United States was responsible for close to 75% of

those sales, shipping $465.5 million worth of seed to Canada in 2016/17, followed by Chile ($38.4 million),

the Netherlands ($32.5 million), China ($18.7 million) and France ($14.7) in 2016/17. Canada’s number one

seed import is corn. The forage and turf seed crops combined to make up the second largest crop kind import

followed by low erucic rape (canola), vegetable seed, pulse, soybean and flax seed.

Canada was at a $63 million positive trade balance position globally on seed in 2016/17.

43

Corn

Corn seed is Canada largest seed import. Of the over $212 million worth of foreign corn sales into Canada last

year, 94% came from the U.S. The U.S. typically ships between 30 to 60 thousand tonnes of corn maize seed

to Canada annually. The following table provides a snap shot of Canada’s other source markets.

Oilseed

The following table summarizes overall oilseed for sowing over the five-year period by crop kind and country.

As a single HS line, canola seed for sowing is the second largest seed import for Canada. The US remains the

predominant source for Canadian growers, while Chile has had steady growth in sales of low erucic rapeseed

to Canada’s market over the five-year period. With respect to soybean seed and flax, Canadian importers still

look predominantly to the US, but India, Argentina and Kazakhstan have been solid performers in Canada’s

flax seed market. The below table summarizes Canada’s oilseed imports by country and crop kind over the

five-year period.

Table 26. Corn seed imports to Canada by country of origin (top 10)

(Values in $CAD)

Country 2012/13 2013/14 2014/15 2015/16 2016/17

United States

$147,935,704 $204,411,282 $186,937,170 $160,439,306 $198,964,033

Chile $16,017,335 $18,593,186 $7,289,921 $8,584,798 $11,424,025

Canada*1 $8,131,571 $15,579,049 $375,339 $627,482 $1,475,418

Austria $350,054 $27,983 $20,817 $23,396 $216,781

Germany $17,549 $48,596 $11,417 $29,613 $46,607

Mexico $37,715 $44,909 $45,093 $33,528 $38,996

France $887,354 $450,960 $425,660 $347,945 $10,861

China $2,474 $7,355 $0 $0 $3,535

New Zealand

$50,765 $23,806 $10,043 $3,012 $258

Argentina $2,108,939 $263,879 $30,561 $422,843 $72


44

Pulses

Canadian pulse seed imports have been on a steady increase over the five-year period, totalling just under

$39 million in 2016/17. Bean seed was the largest single pulse import at close to $13 million, pea seed at $8

million and lentils at $3 million were also at the top of imported pulse seed.

The below table gives a detail breakdown of the various pulse seed imports received by Canada over the five-

year period.

Table 27. Oilseed imports to Canadas by country of origin

(Values in $CAD)

Seed Crop

Country 2012/13 2013/14 2014/15 2015/16 2016/17

Canola United States

$12,599,198 $12,356,039 $43,312,722 $54,169,205 $45,611,320

Chile $18,222,661 $11,996,436 $7,064,108 $17,654,254 $12,086,090

Soya bean

United States

$12,149,684 $10,325,280 $17,937,457 $8,171,976 $29,378,643

Chile $513,318 $531,997 $1,360,287 $684,694 $654,218

India $0 $29,162 $0 $69,155 $130,260

Argentina $5,857 $124,429 $278,566 $214,272 $79,743

China $34,037 $52,244 $31,408 $41,759 $68,253

Flax United States

$6,828,447 $6,742,249 $7,235,364 $6,703,487 $9,829,724

India $18,009 $237,124 $1,043,075 $2,882,385 $1,403,437

Argentina $148,264 $907,907 $1,918,613 $1,073,638 $1,055,154

Kazakhstan $530,543 $443,641 $208,190 $567,195 $924,168

Canada $211,257 $127,638 $702,751 $733,994 $805,375

China $11,836 $4,190 $76,770 $39,155 $115,363

Hemp Seed

United States

$3,681,579 $2,510,009 $1,986,590 $1,681,825 $1,419,478


45

Table 28. Pulse seed imports to Canada by country of origin

(Values in $CAD)

Pea crop Country 2012/13 2013/14 2014/15 2015/16 2016/17

Pea seed United States

$6,695,832 $7,406,099 $7,350,587 $8,010,464 $8,138,114

Hungary $0 $0 $7,523 $7 $69,912

Germany $114 $2,497 $865 $499 $29,496

Japan $0 $0 $0 $0 $24,242

Belgium $115,362 $475,709 $373,254 $192,924 $13,655

Morocco $0 $0 $0 $0 $6,285

Italy $1,307 $28,321 $3,503 $2,074 $2,132

Netherlands $129 $923 $8,083 $657 $2,073

United Kingdom

$0 $40,864 $2,286 $26,701 $656

Canada $346 $0 $20 $863 $76

France $2,602 $387 $14,535 $50,418 $49

Spain $0 $0 $0 $0 $15

Chickpea United States

$67,041 $154,841 $41,787 $171,186 $255,161

India $2,820 $4,811 $7,488 $3,051 $1,512

Israel $0 $0 $0 $0 $13

Bean seed United States

$6,912,589 $9,762,808 $9,854,719 $11,450,553 $11,933,061

France $114,402 $110,797 $96,211 $94,427 $545,333

Chile $74,102 $127,071 $26,962 $134,804 $169,220

Peru $0 $0 $0 $42 $62,293

Netherlands $746 $37,449 $2 $0 $34,097

China $15,679 $56,812 $42,621 $69,546 $19,560

Australia $10 $0 $0 $0 $12,568

United Republic of Tanzania

$0 $8,868 $2,351 $3,290 $7,887

Italy $3,996 $12 $6,031 $2,138 $2,866

Mexico $0 $0 $0 $180 $2,104

Switzerland $0 $0 $0 $2,121 $1,180

Turkey $1,190 $794 $0 $2,309 $505

Navy & white bean

United States

$2,062,422 $3,451,020 $4,481,419 $2,325,319 $3,370,397

China $1,332 $0 $0 $8,511 $24,170

France $358 $355 $0 $1,103 $621

Cameroon $0 $0 $0 $0 $471

46

Country 2012/13 2013/14 2014/15 2015/16 2016/17

Kidney bean seed

United States

$5,013,645 $7,083,973 $9,287,279 $10,583,107 $2,945,366

Nicaragua $0 $0 $30,771 $56,843 $53,391

China $8,964 $3,801 $6,881 $18,425 $26,275

Netherlands $40,582 $97 $1,489 $914 $8,785

United Republic of Tanzania

$14 $987 $1,421 $474 $4,461

Spain $101 $0 $0 $0 $995

Mexico $0 $234 $25 $0 $515

Dominican Republic

$0 $0 $1,130 $1,610 $193

France $236,635 $3,323 $7,359 $596,534 $175

Democratic Republic of the Congo

$0 $76 $0 $0 $113

Chile $241 $37 $14,192 $1,244 $47

Lentils United States

$2,295,093 $2,026,500 $2,168,584 $4,874,261 $3,630,491

United Arab Emirates

$0 $0 $0 $0 $6,120

Turkey $483 $5,295 $836 $6,036 $1,408

Spain $0 $0 $0 $0 $32

New Zealand

$0 $0 $0 $0 $20

Italy $705 $186 $2 $3,071 $6

Broad Bean/ Peru $41,830 $0 $37,903 $157,239 $124,546

Horse Bean Spain $0 $0 $0 $0 $62,322

Bolivia $0 $0 $0 $52,425 $43,203

Belgium $0 $0 $0 $0 $19,479

United States

$15,355 $48,131 $14,326 $101,669 $9,721

Taiwan $4,534 $0 $1,686 $0 $6,401

China $7,435 $6,437 $29,865 $1,239 $5,996

Greece $0 $0 $3,404 $1,733 $4,448

Nigeria $0 $1,253 $0 $1,050 $3,093

Egypt $0 $0 $15,097 $9,597 $2,112

Lebanon $212 $100 $0 $128 $161


47

Table Continued….

Country 2012/13 2013/14 2014/15 2015/16 2016/17

Pulse (nes) India $570,048 $349,581 $577,113 $2,490,747 $3,470,765

Myanmar $1,286,610 $2,039,418 $1,292,528 $3,233,429 $2,746,481

United Arab Emirates

$437,548 $499,919 $1,049,429 $658,235 $696,572

Singapore $392,569 $0 $0 $0 $185,257

United States

$58,792 $57,603 $85,049 $10,773 $73,617

China $37,569 $139,129 $50,767 $75,625 $23,718

Netherlands $1 $0 $13,858 $1,531 $5,028

France $231 $2,112 $16 $0 $2,313

Mexico $1,766 $0 $0 $0 $1,106

Egypt $1,412 $0 $0 $7 $1,084

Chile $0 $0 $62 $7 $643

Algeria $0 $0 $0 $0 $548

Uganda $0 $0 $0 $0 $401

Taiwan $0 $2,031 $3,766 $5,965 $243

Italy $1,159 $8,585 $0 $3,073 $170


Canada imported forage and turf seed from over 25 countries in 2016/17 totalling more than $93 million

dollars in sales. The United States made up for the vast majority of those sales, 25 times more than Germany

which was the closest leading exporter of forage and turf seed to Canada. These sales comprised of an

extensive list of forage and turf seed varieties, 27 from the U.S. alone. Forage seed (not elsewhere specified),

rye grass seed, alfalfa and clover seed were at the top of the list of forage and turf seed imports.

The following is a look at the top 10 countries from which Canada imported forage and grass seed over the

five-year period.

48

Cereals

Relative to corn maize and forage and turf crops, seed imports of cereal crops are small. Wheat seed has

been the largest cereal import over the five-year period, holding steady between $2 and $3 million worth of

seed imported annually. Foreign sales of barley, oat and rye seed to Canada last year ranged from $140 to

$150 thousand each. For all cereal crop categories, the majority of seed came from the U.S. with the

exception of rye seed, where Germany made the biggest sales to Canada in 2016/17.

Table 29. Canada forage and turf seed imports by country of origin (Top 10)

Country 2012/13 2013/14 2014/15 2015/16 2016/17

United States

$57,489,262 $64,244,459 $72,714,998 $87,149,850 $82,029,768

Germany $368,622 $664,157 $1,003,484 $2,077,649 $3,265,643

Denmark $639,735 $2,308,202 $2,425,381 $1,803,355 $1,954,082

Canada*1 $1,423,029 $739,245 $642,971 $1,296,234 $1,525,632

New Zealand

$1,183,315 $1,431,654 $949,671 $1,184,017 $951,863

Uruguay $0 $0 $0 $49,184 $695,470

Italy $1,085,279 $77,015 $208,256 $451,798 $346,921

Egypt $0 $341 $3,481 $119,922 $294,000

Russian Federation

$0 $0 $93,040 $0 $272,556

Argentina $422,957 $225,901 $280,957 $967,437 $265,557


49

The following table summarizes Canada’s cereal seed imports over the five-year period by crop kind and

country.

Table 30. Canada Cereal seed imports by County Origin

(Values in $CAD)

Seed Crop

Country 2012/13 2013/14 2014/15 2015/16 2016/17

Wheat United States $2,084,064 $1,863,608 $3,704,001 $2,943,601 $3,018,810

France $16,223 $75 $32,279 $11,909 $27,009

Chile $20,853 $46,922 $51,863 $10,344 $10,802

New Zealand $18,100 $73,576 $9,263 $8,442 $8,408

Germany $11,491 $725 $104 $118 $2,517

Rye Germany $639 $358 $650 $563 $146,852

United States $54,861 $7,387 $14,394 $58,158 $7,960

Barley United States $172,321 $43,449 $102,175 $88,827 $152,514

Oats United States $1,314,952 $759,263 $277,798 $79,030 $140,515

China $0 $0 $0 $0 $1,583

New Zealand $427 $738 $1,545 $1,044 $512

Chile $13,528 $92 $658 $371 $290


50

Conclusion

Canadian seed exporters are already doing a formidable job of fostering existing relationships in well

established world markets while continuing to mine for opportunity in lesser known emerging markets where

trading relationships have been relatively untested. Canada’s remarkable soybean seed exports to Iran are

one such example. Canadian seed exporters have also shown willingness to take a risk on lesser known

options, hemp seed of course being the noteworthy example which ended 2016/17 as Canada’s single largest

seed export.

Going forward, the data suggests that Canada still has much opportunity to explore in south east Asia, India,

Turkey and Iran not just in soybean but also in pulse, flax and canola seed.

Pulse seeds have also shown a lot of potential in South American countries, recording reasonably good sales

in Ecuador, Brazil, Chile and Peru. Middle Eastern and North African countries are also proving to be

important destinations for pulse seed with Canada doing $3 million worth of sales to Pakistan last year and

close to $1 million in Morocco and Egypt respectively.

Canadian forage and turf exporters have found a stable and reliable market in both the United States and

European countries. The data also suggests there may be further opportunity for Canada to explore in Russia

where forage and turf seed varieties have shown some good promise. To a lesser degree, South American

countries namely Chile, Peru and Cuba may also prove worthwhile exploration for forage and turf seed.

For corn seed exports, the U.S. will always be king in terms of export destinations. However, the data

suggests that Europe, particularly Ireland and the UK, are showing reasonably good potential for Canada and

Portugal, Mexico and Cuba may all also present some opportunity for corn going forward.

There has been little experimentation in cereal crops outside of North American borders as compared with

other crop kinds, however seed exporters have found some success in Italy on durum wheat. Canadian seed

exporters might also keep an eye on Colombia, given Canada has made some sizable wheat seed sales here.

Canadian seed exporters have shipped relatively little vegetable seed outside of Canada and the US., United

Kingdom, the Dominican Republic and the Netherlands. As a market destination, Canada imported over $150

million worth of vegetable seed in 2016/17, mostly from the United States, Netherlands and China but small

amounts of vegetable seed have come in from over 80 countries over the course of the five-year period

observed. As such, Canada’s seed trade might consider looking domestically for potential market

opportunity.

Canadian seed exporters will not be without challenges as the trade looks to tap new and emerging markets,

many of which come fraught with non-tariff trade barriers, most notably zero-tolerance policies on biotech

traits in several key markets. Nevertheless, the trade has proven ready and willing to explore new

opportunities that have led to increased demand for Canada’s seed products.

51

Appendix: Canadian Trade Commissioner Services

China Peter Yanping Chen The Embassy of Canada to China 19 Dong Zhi Men Wai Street Chaoyang District Beijing 100600, China Tel: 86-10-5139-4000 Fax: 86-10-5139-4450 [email protected] [email protected] Iran ***Consular General of Dubai responsibilities for Iran Alex Chan 19th Floor, Emirates Towers Sheik Zayed Road Dubai, United Arab Emirates Tel: (011-971)4 404-8444 (011-971)4 404-8556 [email protected] Ireland Gerry Mongey The Embassy of Canada to Ireland 7/8 Wilton Terrace, Dublin 2 Ireland Tel: (011-353-1)234 4000 Fax: (011-353-1)234 4001 [email protected]

Italy Jennifer Fellows The Embassy of Canada to Italy Villa Grazioli Via Salaria 243 Rome, 00199 Italy Tel: (011-39) 06-85.444.1 Fax: (011-39) 06-85.444.3915 [email protected] [email protected] Japan Nathan Funk The Embassy of Canada to Japan 7-3-38 Akasaka Minato-ku Tokyo 107-8503, Japan Tel: (011-81-3) 5412-6200 Fax: (011-81-3) 5412-6254 [email protected] [email protected] Netherlands Diederik Beutener The Embassy of Canada to the Netherlands Sophialaan 7 The Hague 2514 JP, Netherlands Tel: (011-31-70) 311-1600 Fax: (011-31-70) 311-1620 [email protected]









Republic of Korea Tommy Couture The Embassy of Canada to the Republic of Korea 21, Jeongdong-gil (Jeong-dong) Jung-gu. Seoul 100-120, Republic of Korea Tel:82-2 3783-6077 Fax: 82-2 3783-6147 [email protected] Turkey Baris Satar The Consulate General of Canada Tekfen Tower Floor 16 Buyukdere Cad. 209 Levent 4 4 Levent, Besiktas Istanbul, 34394 Turkey

United Kingdom Emma Finn Canada House, Trafalgar Square London, SW1Y 5BJ United Kingdom Tel: (011-44-20) 7004-6000 Fax: (011-44-20) 7004-6001 [email protected] [email protected] United States of America Michael Hawkins Canadian Embassy 501 Pennsylvania Avenue, NW Washington, DC 20001 Tel: 202-682-7787 [email protected]





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