EU certification gives you access to a new market

As Alexander Graham Bell once famously said, “When one door closes, another opens.”

Doors have been closing in the China market this past year, and the Canadian canola industry has been working hard to open new ones in other promising markets. One of these opportunities is the European Union’s biofuel sector.

While the EU imports less canola than China, it’s an important part of the puzzle as the industry finds ways to diversify markets. Right now, sales potential in the EU is surging, driven by the lowest domestic rapeseed production in more than a decade. In fact, Canadian grain companies predict a three-fold increase in canola exports to the EU in the coming year alone.

Canadian canola is already a qualified feedstock for use in EU biofuels thanks to the Canola Council of Canada’s past efforts, but exporters and growers need to be certified if they choose to take advantage of this significant opportunity. This certification is necessary to meet the EU’s biofuel requirements, which are outlined in the Renewable Energy Directive (RED).

Most farms in Western Canada already meet the requirements for EU-certification, but not all have gone through the certification process. In fact, the number of farms certified for the market might be the biggest limitation on how much canola will be exported to the EU this year.

“We really need the growers to become certified,” says Chad Molesky, Merchandising Manager for Viterra, one of the export companies registering growers. “If they don’t, we won’t have the volumes for export to this market.”

Fortunately, the certification process at the farm level is quick and easy, thanks to past groundwork by the Canola Council. Grain handlers provide growers with a short questionnaire (paper or online) that takes just a few minutes to complete. Once certified, a farm’s canola is eligible for a market that is expected to import substantially more seed from Canada this year. And there is no cost to the farmer for certification.

To help growers decide whether this program is right for their farms, the Canola Council has prepared new information materials, including a webinar recorded in August. See below for more on questions asked and answered during the webinar, and links for more information.

Here’s an overview of what was asked and answered during the 45-minute session.

The complete webinar is available for playback on the Canola Council website.

“As a student of the marketplace, I’ve always wanted to open all the doors that are possible.”

—Doyle Wiebe, whose farm has been EU certified since 2017. Wiebe sees advantages for certification beyond the EU market, as other big food industry players like General Mills, Unilever and Walmart move to various kinds of assurance programs.

Why would a grower want to do this?

Certification makes a grower’s canola eligible for a significant market that provides diversification options to growers and exporters. Keeping canola flowing to export markets helps keep demand strong, which in turn encourages good prices at the farm gate.

Growers like Wiebe also see advantages for certification beyond the EU market, as other big food industry players like General Mills, Unilever and Walmart move to various kinds of assurance programs. “As a student of the marketplace, I’ve always wanted to open all the doors that are possible,” he says.

In addition, certification is a way of getting credit for good practices already in place. Certification tells consumers that Canadian farmers have one of the most sustainable production systems in the world.

How do I sign up?

All it takes is a quick visit to a participating elevator. You complete a short questionnaire to verify that your farm complies with the requirements, and then you’re instantly certified. Once certified, you renew the application each year.

Is there a cost to be certified?

None whatsoever.

What are my responsibilities?

By signing up for certification, you agree to keep good records showing that your practices meet the requirements. You also agree to participate in an on-farm assessment, should your farm be one of the operations selected at random.

What happens if I’m chosen for an assessment?

Not every grower is assessed; a small number of farms are chosen at random each year. But if you are certified, you must be ready for an assessment. That means having important documents organized and readily available. An Assessment-Ready Checklist is posted on canolacouncil.org/EUcertified to provide high-level information to growers about the requirements. For questions or additional information, participating grain handlers remain your best source of information.

An assessor will visit your farm to assess your internal documents and inspect your operations, including growing areas and storage facilities. The assessor may also interview people associated with your farm, like employees and stakeholders.

“Most of our farmers who have been through an on-farm assessment have said, ‘Gee, that was certainly easier than I thought it would be,” says Molesky.

What happens if there is an issue with the assessment?

If the assessor finds some kind of deficiency, the grower is given an opportunity to correct it. If the deficiency isn’t addressed within a specified time, the farm gives up the right to participate in this export opportunity.

Is there any reason I might not be eligible?

Most Western Canadian farms will meet the certification requirements without any change to their practices.

One reason a farm might not comply is recent land conversion. Canola sold into the EU must be grown on land that has been in cultivation since at least January 2008. If cropland has been converted from forest, wetlands, peat lands or some sort of protected area after that date, it may not meet EU standards for sustainability. Any questions on meeting this requirement should be discussed with your local grain handler.

Which exporters are participating?

The first three companies registering growers for EU-certification are Viterra, G3 and Cargill. By the time this article is published, other grain handlers may also have programs. Check the Canola Council website at canolacouncil.org/EUcertified for a list of all participating companies.

How can I learn more?

Each company has its own distinct program, so it’s best to contact a participating grain elevator in your area for details.

On the Canola Council website, you’ll find links to grain handler contacts as well as more information about the EU’s Renewable Energy Directive (RED), an Assessment-Ready Checklist and a recording of the August webinar. Just go to canolacouncil.org/EUcertified.