Australian Oilseeds Sees Surging Demand for its Canola Oil from China
Rhea-AI Summary
Australian Oilseeds Holdings (NASDAQ: COOT) reports increasing demand for its canola oil products from China amid the ongoing China-Canada trade war. The company's partnership with Shanghai Maiwei Trading Co., established in January 2025, positions them to capitalize on this market opportunity.
The company has received multiple inquiries from Chinese private and state-owned enterprises and expects to secure several long-term supply agreements with Chinese companies in the next 12 months. Currently, the majority of sales come from the domestic Australian market through major supermarkets and retailers, making the business relatively insulated from potential US trade tariffs.
Positive
- Growing demand from Chinese market for canola oil products
- Strategic partnership with Shanghai Maiwei Trading Co. established
- Multiple potential long-term supply agreements with Chinese companies expected
- exposure to US trade tariffs due to primarily domestic sales focus
Negative
- Heavy dependence on domestic market could limit international growth potential
News Market Reaction – COOT
On the day this news was published, COOT declined 1.47%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
COOTAMUNDRA, Australia, March 19, 2025 (GLOBE NEWSWIRE) -- Australian Oilseeds Holdings Limited, a Cayman Islands exempted company (the “Company”) (NASDAQ: COOT) today announced that it is seeing surging demand for its canola oil products from China in response to the ongoing trade war between China and Canada.
“Our high-quality oils are well positioned for growth in China and the partnership with Shanghai Maiwei Trading Co., which we announced in January 2025, provides a strong foundation to capitalize on the recent surge in demand for our canola oil,” said Gary Seaton, Chief Executive Officer. “We have received numerous inquiries from both private and state-owned enterprises and anticipate entering into several long-term supply agreements with Chinese companies over the next 12 months.”
According to the United States Trade Representative (USTR), in 2024, the United States (US) goods trade with Australia totaled an estimated
About Australian Oilseeds Investments Pty Ltd. Australian Oilseeds Investments Pty Ltd. is an Australian proprietary company that, directly and indirectly through its subsidiaries, is focused on the manufacture and sale of sustainable oilseeds (e.g., seeds grown primarily for the production of edible oils) and is committed to working with all suppliers in the food supply chain to eliminate chemicals from the production and manufacturing systems to supply quality products to customers globally. The Company engages in the business of processing, manufacture and sale of non-GMO oilseeds and organic and non-organic food-grade oils, for the rapidly growing oilseeds market, through sourcing materials from suppliers focused on reducing the use of chemicals in consumables in order to supply healthier food ingredients, vegetable oils, proteins and other products to customers globally. Over the past 20 years, the Company’s cold pressing oil plant has grown to become the largest in Australia, pressing strictly GMO-free conventional and organic oilseeds.
Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, business strategy and plans, market trends and market size, opportunities and positioning. These forward-looking statements are based on current expectations, estimates, forecasts and projections. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. For example, global economic conditions could in the future reduce demand for our products; we could in the future experience cybersecurity incidents; we may be unable to manage or sustain the level of growth that our business has experienced in prior periods; our financial resources may not be sufficient to maintain or improve our competitive position; we may be unable to attract new customers, or retain or sell additional products to existing customers; we may experience challenges successfully expanding our marketing and sales capabilities, including further specializing our sales force; customer growth could decelerate in the future; we may not achieve expected synergies and efficiencies of operations from recent acquisitions or business combinations, and we may not be able to pay off our convertible notes when due. Further information on potential factors that could affect our financial results is included in our most recent Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. The forward-looking statements included in this press release represent our views only as of the date of this press release and we assume no obligation and do not intend to update these forward-looking statements.
Contact
Australian Oilseeds Holdings Limited
126-142 Cowcumbla Street
Cootamundra New South Wales 2590
Attn: Bob Wu, CFO
Email: bob@energreennutrition.com.au
Investor Relations Contact
Reed Anderson
(646) 277-1260
reed.anderson@icrinc.com
FAQ
How is the China-Canada trade war affecting Australian Oilseeds (COOT) canola oil demand?
What is Australian Oilseeds' (COOT) partnership with Shanghai Maiwei Trading Co.?
When does COOT expect to secure long-term supply agreements with Chinese companies?
Will US trade tariffs affect Australian Oilseeds' (COOT) business?
