Winnipeg, Manitoba, Canada
July 30, 2009
The crop year will end tomorrow
showing the largest Canadian wheat exports in nine years and the
second-highest grain revenues in history for western Canadian
farmers.
CWB president and CEO Ian White
said the 2008-09 crop year was marked by strong sales to
important new wheat markets in Iran and Saudi Arabia and record
bulk exports of Prairie malting barley at record prices for
producers.
"The strength and stability of the Canadian grain industry has
been a bright spot in the gloomy economic environment over the
past year," White said at the CWB's annual crop year-end news
conference. The CWB exported about 18.5 million tonnes (MT) of
wheat, durum and barley during the crop year, the highest volume
since 1999-2000 and up over a million tonnes from last year. CWB
net revenue, returned directly to farmers, is estimated at more
than $6 billion – second only to last year's $7.2 billion.
However, CWB board chair Larry Hill cautioned that poor weather
across the Prairies continues to create concern for the 2009
crop. "Looking ahead, it is now quite certain that drought and
cold weather will take a toll," said Hill, who farms near Swift
Current, SK. "We will need near-perfect weather for the rest of
the growing season and into the fall to preserve the quality of
this year's crop."
The CWB today released its second official Prairie-wide crop
production estimates for 2009, lowering its all-wheat
projections by 600 000 tonnes to 20.2 MT from the last official
estimates released in June. The new production estimates are
about 20 per cent lower than this year's production, estimated
at 25.5 MT. The new estimates include durum production of 4.2
MT, down 200 000 tonnes from the June estimates, while barley is
down 300 000 tonnes to 8.6 MT.
Market volatility and fluctuating currency values continued to
pose challenges during 2008-09, but White said the CWB's
disciplined year-long marketing approach and sound risk
management practices helped inject stability to farmer returns.
"The effects of the global financial crisis began to
increasingly influence agricultural commodities as the crop year
progressed," White said. "In such uncertain times, the CWB's
focus on orderly marketing and careful risk management is
particularly valuable."
Producers' pooled earnings for malting barley are the highest
ever: $5.37 per bushel in Saskatchewan, $5.54 in Manitoba and
$5.57 in Alberta (after freight and handling deductions) – up
about four per cent from the previous year. Returns for
high-quality spring wheat are expected to be $6.61 per bushel in
Saskatchewan, $6.76 in Manitoba and $6.82 in Alberta – down
about 20 per cent from last year's record-high returns, but
still the second highest on record. For high-quality durum,
projected returns are $8.47 in Saskatchewan and $8.56 in
Alberta, a 30-per-cent drop from last year's price peak.
Controlled by western Canadian farmers, the CWB is the
largest wheat and barley marketer in the world. One of Canada's
biggest exporters, the Winnipeg-based organization sells grain
to more than 70 countries and returns all revenue, less
marketing costs, to farmers. |
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