Business as usual in Canada
GREGOR HEARD
20 Aug, 2012 03:30 AM
CANADIAN growers, used to dealing on the
open market with their oilseed and pulse
crops, will have little trouble adapting
to deregulation in their wheat industry
according to a Canadian-based grain
marketing consultant.
Greg Kostal, who is based in Winnipeg,
predicts the open Canadian wheat market
will see more grain exported out of the
west coast, and head to Asia, than under
the former Canadian Wheat Board (CWB).
He also flagged an increase in wheat
acres.
“The pool diluted people’s tendencies to
plant wheat.
“It’s a necessary part of the rotation
in the northern prairies, but overall
wheat and barley acreages have been
falling, as growers favour canola in
particular, but also pulses, where there
have been superior genetic gains in
terms of yield.”
In terms of exporting, he said more
grain would head to Asia via the west
coast.
“I think exporters will try and maximise
use of ports at Vancouver and Prince
Rupert on the west coast.”
Mr Kostal said the amount of grain
exported out of Canada could increase.
“At present, about 30 million tonnes of
grain out of around 50-60 million tonnes
produced are exported.
“In wheat that is 19 million tonnes of
27 million tonnes produced that is
exported, I think these figures will
increase under deregulation.”
He said he thought there would be a
trend towards buyers looking towards
definite milling traits, rather than the
focus on the quality wheats that CWB
had.
“Canadian Western Red Spring (CWRS)
wheat is nice to have, but the world
doesn’t need it all at a premium to
everything else, so there will be more
mid-quality wheat.”
He said there may be some wheat planted
at the expense of malt barley, which he
said in Canada was becoming almost a
niche crop, displaced by high yielding
feed varieties and mid quality wheat.
“There will probably be less of a spread
for protein, in line with world demand,
rather than the heavy focus on high
protein wheat CWB had.”
In terms of wheat marketing on the
global scale he did not foresee the open
market would change much in terms of the
way the global wheat trade operated.
“The open market doesn’t really skew
either our production potential, or how
the world trade will operate, as we were
seldom leaders on the world market
anyway.”
GREGOR HEARD
20 Aug, 2012 03:30 AM
CANADIAN growers, used to dealing on the
open market with their oilseed and pulse
crops, will have little trouble adapting
to deregulation in their wheat industry
according to a Canadian-based grain
marketing consultant.
Greg Kostal, who is based in Winnipeg,
predicts the open Canadian wheat market
will see more grain exported out of the
west coast, and head to Asia, than under
the former Canadian Wheat Board (CWB).
He also flagged an increase in wheat
acres.
“The pool diluted people’s tendencies to
plant wheat.
“It’s a necessary part of the rotation
in the northern prairies, but overall
wheat and barley acreages have been
falling, as growers favour canola in
particular, but also pulses, where there
have been superior genetic gains in
terms of yield.”
In terms of exporting, he said more
grain would head to Asia via the west
coast.
“I think exporters will try and maximise
use of ports at Vancouver and Prince
Rupert on the west coast.”
Mr Kostal said the amount of grain
exported out of Canada could increase.
“At present, about 30 million tonnes of
grain out of around 50-60 million tonnes
produced are exported.
“In wheat that is 19 million tonnes of
27 million tonnes produced that is
exported, I think these figures will
increase under deregulation.”
He said he thought there would be a
trend towards buyers looking towards
definite milling traits, rather than the
focus on the quality wheats that CWB
had.
“Canadian Western Red Spring (CWRS)
wheat is nice to have, but the world
doesn’t need it all at a premium to
everything else, so there will be more
mid-quality wheat.”
He said there may be some wheat planted
at the expense of malt barley, which he
said in Canada was becoming almost a
niche crop, displaced by high yielding
feed varieties and mid quality wheat.
“There will probably be less of a spread
for protein, in line with world demand,
rather than the heavy focus on high
protein wheat CWB had.”
In terms of wheat marketing on the
global scale he did not foresee the open
market would change much in terms of the
way the global wheat trade operated.
“The open market doesn’t really skew
either our production potential, or how
the world trade will operate, as we were
seldom leaders on the world market
anyway.”
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