AsianFin -- Importers in China are grappling with unsold shipments of Canadian canola meal after Beijing slapped steep import tariffs on the animal feed ingredient, according to three trade sources.
Around 400,000 metric tons of the protein-rich product are now stored in secured warehouses near Chinese ports. Importers face a 100% duty if they release the cargoes into the domestic market.
“It’s not feasible to pay the duty, so we’re exploring resale to other markets, perhaps feed-makers in Southeast Asia or South Korea,” said an executive at one importing firm, speaking on condition of anonymity.
Traders said the cargoes are being offered at roughly a 30% discount to attract overseas buyers.