Trade Specs - Phase One and Timothy

Happy Day?

April 15 isn't just tax day this year. April 15 marks the deadline for the US and China to finalize export protocols for forage projects including:

  • Almond Meal Pellets and Cubes
  • Alfalfa Hay and Pellets
  • Timothy

"Within one month of the date of entry into force of this Agreement, the GACC shall meet with USDA/APHIS and conduct an on-site visit of U.S. production of U.S. alfalfa hay pellets and cubes, U.S. almond meal pellets and cubes, and U.S. timothy hay. Within three months of the date of entry into force of this Agreement, USDA/APHIS and the GACC shall sign and implement a phytosanitary protocol to allow importation into China of these products."

Canadian Exports

Total Canadian timothy exports rallied 20% year over year. The additional 41,000 tons is driven by gains in all major trading partners. Japan led the increase with an additional 22,000 tons. 

A 245% increase in timothy exports to China seems optimistic but only represents an additional 6,000 tons. As US timothy growers turn their attention to China, their hopes are muted by modest existing timothy exports from Canada. Is there the demand in China for US timothy?

Source: Stats Canada - Hay Kings

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