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China's Private Crushers Buy Australian Canola in First Deals Since 2020 - National, ACT
Smart summary
A Chinese private processor has purchased 68,000 tonnes of new-season Australian canola for shipment in March, marking the first known private-sector purchases since trade was disrupted in 2020.
Chinese private canola processors have returned to the Australian market with new purchases, marking an important development for Australia's agricultural export sector. A private Chinese crusher has purchased 68,000 metric tonnes of new-season Australian canola for shipment in March, according to trade sources reported on 23 September 2026.
The transaction is significant because it is the first known purchase by a private Chinese processor since Australian canola trade with China was disrupted in 2020. A second private processor also purchased Australian canola, with that earlier shipment arriving in China during September.
The latest purchase was reportedly agreed at about US$730 per tonne including cost and freight. The transaction involves new-season Australian canola, with Australia's next canola harvest expected to begin in October and continue through December.
Canola is an important agricultural commodity for Australia. The crop is processed into canola oil, which is widely used for cooking, while the remaining meal is commonly used as an ingredient in animal feed. Australia is the world's second-largest exporter of canola, behind Canada, while China is the world's largest importer of the crop.
Trade between Australia and China was heavily disrupted from 2020, when Australian canola was effectively excluded from the Chinese market. Phytosanitary restrictions, including concerns relating to fungal plant disease, were among the factors affecting the trade.
China subsequently began reopening its canola market to Australian exporters. Around the middle of 2025, state-owned Chinese trader COFCO began making trial purchases of Australian canola. Private processors, however, remained outside the market until Beijing expanded access in July 2026.
The new private-sector purchases therefore represent another step in the reopening of the Australian-Chinese canola trade. The return of private buyers could provide Australian growers and exporters with an additional source of demand for future crops.
The timing is also important for Australian farmers because the country's new canola harvest is approaching. Growers are preparing for harvesting activity that will take place from October through December, meaning international purchasing decisions made during this period can influence expectations for the new crop.
Australia's agricultural exporters have a significant presence in international oilseed markets. Canola is grown across several Australian farming regions, particularly in New South Wales, Victoria, South Australia and Western Australia.
For Chinese processors, Australian canola provides an alternative supply source for producing vegetable oil and protein-rich animal feed ingredients. For Australian producers, renewed access to Chinese private buyers expands the potential customer base following several years of restricted trade.
The latest transactions do not mean that all previous trade barriers have disappeared, and future purchases will depend on market conditions, regulations and individual commercial decisions. However, the deals indicate that private Chinese processors are once again participating in purchases of Australian canola.
The development comes as Australia prepares for its 2026 canola harvest and as international demand for oilseeds remains an important factor for Australian agricultural exporters.
CanolaPrivateChineseTradeChina
Chinese private canola processors have returned to the Australian market with new purchases, marking an important development for Australia's agricultural export sector. A private Chinese crusher has purchased 68,000 metric tonnes of new-season Australian canola for shipment in March, according to trade sources reported on 23 September 2026.
The transaction is significant because it is the first known purchase by a private Chinese processor since Australian canola trade with China was disrupted in 2020. A second private processor also purchased Australian canola, with that earlier shipment arriving in China during September.
The latest purchase was reportedly agreed at about US$730 per tonne including cost and freight. The transaction involves new-season Australian canola, with Australia's next canola harvest expected to begin in October and continue through December.
Canola is an important agricultural commodity for Australia. The crop is processed into canola oil, which is widely used for cooking, while the remaining meal is commonly used as an ingredient in animal feed. Australia is the world's second-largest exporter of canola, behind Canada, while China is the world's largest importer of the crop.
Trade between Australia and China was heavily disrupted from 2020, when Australian canola was effectively excluded from the Chinese market. Phytosanitary restrictions, including concerns relating to fungal plant disease, were among the factors affecting the trade.
China subsequently began reopening its canola market to Australian exporters. Around the middle of 2025, state-owned Chinese trader COFCO began making trial purchases of Australian canola. Private processors, however, remained outside the market until Beijing expanded access in July 2026.
The new private-sector purchases therefore represent another step in the reopening of the Australian-Chinese canola trade. The return of private buyers could provide Australian growers and exporters with an additional source of demand for future crops.
The timing is also important for Australian farmers because the country's new canola harvest is approaching. Growers are preparing for harvesting activity that will take place from October through December, meaning international purchasing decisions made during this period can influence expectations for the new crop.
Australia's agricultural exporters have a significant presence in international oilseed markets. Canola is grown across several Australian farming regions, particularly in New South Wales, Victoria, South Australia and Western Australia.
For Chinese processors, Australian canola provides an alternative supply source for producing vegetable oil and protein-rich animal feed ingredients. For Australian producers, renewed access to Chinese private buyers expands the potential customer base following several years of restricted trade.
The latest transactions do not mean that all previous trade barriers have disappeared, and future purchases will depend on market conditions, regulations and individual commercial decisions. However, the deals indicate that private Chinese processors are once again participating in purchases of Australian canola.
The development comes as Australia prepares for its 2026 canola harvest and as international demand for oilseeds remains an important factor for Australian agricultural exporters.
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