Australia exported 375,480 tonnes of canola in August, according to the Australian Bureau of Statistics, as reported by Grain Central. This figure shows a slight decline from the 386,034 tonnes shipped in July but remains above the 358,677 tonnes exported in August last year. The data highlights Australia’s strong performance in canola exports, which concluded a record-setting year on September 30, 2023, with a total shipment of 6 million tonnes.

Japan emerged as the top destination for Australian canola in August 2024, importing 120,129 tonnes. The United Arab Emirates (UAE) followed with 90,732 tonnes, while Pakistan imported 65,038 tonnes, making these three countries the largest markets for Australia’s canola exports during the month.

A key development impacting Australian canola exports is the recent announcement of a Comprehensive Economic Partnership Agreement (CEPA) between Australia and the UAE. This agreement, highlighted in Lachstock Consulting’s October 4 Roundup Ready Canola Technologies report, will eliminate the 5-percent tariff on Australian canola exports to the UAE. The removal of this tariff is expected to enhance Australia's competitive position in the UAE market, which has long been a significant importer of Australian canola.

Lachstock’s report emphasized that the UAE is a key player in the global canola market due to its price sensitivity. The country typically imports around 800,000 tonnes of canola annually, and this figure could rise if China implements a ban on Canadian canola imports, potentially increasing demand for Australian canola. The UAE’s role extends beyond importing, as the country is expected to crush the canola for oil and meal, which it will then re-export to China, a key buyer in the region.

In parallel with these export developments, Australia’s new canola harvest has already begun in Western Australia. The region is projected to produce 2.2 million tonnes of canola this season, a decrease of 300,000 tonnes compared to the 2023-24 production levels. This estimate was provided by the Grain Industry Association of Western Australia (GIWA) in their September forecast. Despite this reduction, Western Australia remains a major contributor to the country’s overall canola production, underlining its importance to the national export market.

With strong demand from international markets, particularly Japan, the UAE, and Pakistan, and the added benefit of tariff removal through the CEPA, Australia’s canola industry continues to thrive. Though the 2024 harvest is expected to be slightly lower, the nation’s canola sector is poised to remain a key driver of agricultural exports, contributing significantly to Australia’s economy.