Tag Archives: Canadian grain growers

Canadian Grain Exports

Canadian Grain Exports

Grain Trends North America – 2016

Canadian grain exports of wheat, excluding durum, have reached nearly 10 million tons between August 2015 and January 2016. This is up from the same 2014 to 2015 period by almost 19% (8.1 million tons). March 2016 prices are averaging approximately $4.40 per bushel. Durum wheat is projecting a slight acreage increase due to the better prices in 2015.

With Canadian grain exports of 24.1 million tons this past year, Canada overtook the United States in wheat exports for the first time. This looks to be an ongoing trend with slight fluctuations over the next several years.

Globally, wheat production is trending lower for 2016. The U.S. projects the lowest exports since 1971 due to competition from other countries, including Canada. In addition, the higher prices and demand for pulses, or legume seeds, indicates a decrease in acreage for wheat and an increase for the pulses.

Canola is currently up from 4.1 million tons to 4.8 million tons for the crop year. This is a significant increase from the five-year average. Canola prices average $10.00 per bushel according to the latest prices and it doesn’t appear there will be much change in acreage.

There is a growing trend towards the production of pulses due to their high protein Dried Red Lentils - Pulse Cropscontent and increasing demand by consumers and restaurants. As the demand for this popular seed increases, it’s likely cereal grains will lose some acreage to pulse production. Prices are strong for lentils and peas at .25 to .40 per pound for lentils and $8.00 to $9.00 per bushel for yellow peas.

Overall, 2016 looks to be a mixed year for Canadian grain exports with wheat prices remaining stable and canola showing an increase. Pulses are likely to continue their current trend with a significant increase due to their growing popularity.

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Contact Barr Ag to get more information on any or our crops including Alfalfa, Timothy, Mixed Hay, Canadian Grains and Pulse crops.

Canadian Grain Exports

Canadian Grain Exports

Canada as a top producer of wheat in the world, typically places seventh among major wheat producing countries in yearly comparisons.Across Canada, nearly 52,000 farmers grow wheat on over 22.8 million acres of Canadian land. Although wheat is grown across the country, the majority of the production of Canadian wheat exports takes place in Western Canada.

Canada is also the second largest exporter of wheat in international trade, averaging overCanadian Grain Exporters 20 million tonnes exported annually. In 2012, this number surpassed 27 million tonnes.Canadian grain exports account for approximately 21% of all wheat exports in the world market. Wheat export revenues in Canada total almost $5.4 billion each year. Some of the major importers of Canadian grain exports are China, Mexico, Japan, Colombia, Iraq, and the United States.

In addition to producing a large quantity of wheat, Canada is also renowned for the quality of its wheat. The Canadian Grain Commission (CGC) established quality standards in the Canada Grain Regulations Section 5. In addition to maintaining quality standards, the CGC records annual crop year data for wheat.

The CGC divided wheat into several unique classes, based on the grains functional characteristics. Growing regions in Canada, Western and Eastern, determine the categorization placed on the classes. Each class possesses a certain set of characteristics and is best suited for specific end uses.

Because of the superior quality of Canadian hard wheat, it is primarily used in the making of pastas and semolina. This hard wheat, also called durum, accounts for nearly half the total of world exports with Algeria and Italy the two largest customers.

Not only is Canada a leader in wheat exports it is now the second largest exporter of barley in the world with an average of 3.8 million tonnes per year capturing 22% of the world’s trade in brewing and feed barley.

Canadian grain exports dominate the market with nearly four million tonnes exported annually, it accounts for 80% of the total exports of canola, and 10% of the total oil seeds exports on the world market. To put these figures in perspective, the second highest exporter of canola, the European Union, only exports just over 300,000 tonnes each year. As demand for canola continue to grow, Canada’s canola industry is soon expected to exceed 12,000 tonnes per day.

Contact Barr Ag to get more information on any or our crops including Alfalfa and Timothy Hays, Mixed Hay, Canadian Grains and Pulse corps.

CETA Benefits Canadian Grain Producers

Last month the Government of Canada announced the recently negotiated free trade deal between Canada and the European Union.  The Canadian-European Union Comprehensive Economic and Trade Agreement (CETA) promises benefits to every region in Canada.  The European Union is one of the most lucrative markets in the world, and in Alberta it is already the fourth largest export destination after the United States, China and Japan.

This opens up a major market opportunity for agriculture food producers in Western Canada.  Canadian grain growers will be able to export products to a new market.  On the downside, the Canadian Dairy producers oppose the free-trade agreement.  They do not welcome the competition from the large European cheese market that will now be able to easily access Canadian consumers.

However, beef producers along with Canadian wheat, barley and oilseed producers have shown enthusiasm for the new deal.  Gaining access to this large and lucrative market forecasts an incredible revenue growth for Canadian grain growers.

In regards to CETA, Matt Sawyer, chair of the Alberta Barley Commission, told the Globe and Mail that “It’s good for Alberta, it’s good for Canada.  To have this opportunity for producers in Alberta and Canada to have access to basically 500 million more people is absolutely fantastic.”

CanolaCETA will also benefit Canadian canola growers.  The Canadian Canola Growers Association, which represents more than 43,000 canola farmers on national and international issues, is anxiously waiting a successful conclusion to the deal.  CETA will expand European market opportunities for Canadian canola products including canola oil for biofuels and canola meal for livestock feeds.

“By lowering oil tariffs, the exports of Canadian canola oil to Europe will increase in value by approximately $90 million, creating new demand for canola seed to feed our expanding oilseed crushing capacity,” said Rick White, General Manager of the Canadian Canola Growers Association.

“Our farms depend on trade, and the CETA is an excellent example of how the Government of Canada is helping Canadian farmers achieve export success,” said White.

Presently, Canadian agriculture exports to the EU face high tariff rates, with the average tariff rates of 13.9 percent.  The removal of the current tariff on ‘common wheat’ or lower protein wheat varieties will benefit Canadian wheat.  Canada is known most for its high quality wheat but if tariffs are removed from other wheat varieties, Canadian wheat growers can more easily diversify their crops and focus on marketing several different varieties of wheat around the world.

In addition, almost 94% of EU agriculture tariff lines will be duty free.  This will give Canadian agricultural goods access to the EU market and a competitive advantage over producers from other countries that do not have a free trade agreement with the EU.  According to the Canada-European Union Comprehensive Economic and Trade Agreement website, EU tariffs will be eliminated on:

  • grains, including oats (EU tariffs of $114/tonne), low- to medium-quality common wheat (EU tariffs of up to $122/tonne), and barley and rye (EU tariffs of up to $120/tonne);
  • durum and high-quality common wheat (maximum tariffs up to $190/tonne and $122/tonne respectively), for which CETA will lock in permanent duty-free access; and
  • oils, including canola oil (EU tariffs of up to 9.6 percent).

Having access to this market is a positive thing for Canadian grain growers and exporters like Bar-Agg Hay and Grain Exporters.  Barr-Ag is already an exporter of Canadian grains to countries around the globe and anticipates the expanded opportunities to market to the European Union.

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Sources:

http://www.ccga.ca/News/Pages/Canada%E2%80%99s-Canola-Farmers-Support-Conclusion-to-CETA.aspx

http://www.actionplan.gc.ca/en/page/ceta-aecg/benefits-alberta

http://www.calgaryherald.com/business/Canada+trade+deal+just+about+beef+will+help+grain+oilseed+farmers/9068657/story.html