France worries about increase in Saskatchewan mustard prices
by Mark Cardwell
A potential tripling in the price of mustard seed over the coming year – largely the result of weather-related drops in production in recent years in Saskatchewan, which accounts for 95 per cent of Canada’s total production and half the world’s supply – has mustard makers in France seeing red.
According to an analysis of the state of the French mustard industry by Euro RSCG, one of the world’s largest marketing and communications agencies, the processors of such renowned products as Dijon are facing a 31 per cent increase in the cost of mustard in production contracts signed for the current year.
This is the third consecutive year of double-digit increases being faced by the industry, which imports 95 per cent of the 25,000 tonnes of mustard it buys annually from Canada.
Notably, the analysis blames the strong Canadian dollar, which has gained eight per cent in value against the Euro since January, and weather conditions on the Canadian Prairies, which have cut production and tightened world mustard supply.
Higher prices would appear to be good news for Saskatchewan’s 3,000 mustard growers, most of whom are located in the more arid, brown soil zones of the province. They typically plant about 600,000 acres of three types of mustard – brown or Dijon (which represents about 40 per cent of total production), and yellow and oriental (roughly 30 per cent each).
However, for many growers, the price increases are a mixed blessing.
According to Brett Meinert, co-founder and former president of the Saskatchewan Mustard Development Commission, a producer-funded levy organization that has been working to increase profitability for growers since its founding in 2005, higher prices are largely a result of unfavourable climatic conditions that have made growing quality mustard difficult.
“Let’s just say the weather hasn’t been all that helpful the last few years,” says Meinert, who farms near Shaunavon in the southwest corner of the province.
He adds reduced crops have fueled speculation that the current prices of 22 to 24 cents a pound in production contracts could jump to as high as 72 cents next year, matching the all-time high for yellow mustard set several years ago.
While prices of that magnitude would bode well for next year, Meinert says high price prospects can lead to overproduction and reduced prices.
by Mark Cardwell
A potential tripling in the price of mustard seed over the coming year – largely the result of weather-related drops in production in recent years in Saskatchewan, which accounts for 95 per cent of Canada’s total production and half the world’s supply – has mustard makers in France seeing red.
According to an analysis of the state of the French mustard industry by Euro RSCG, one of the world’s largest marketing and communications agencies, the processors of such renowned products as Dijon are facing a 31 per cent increase in the cost of mustard in production contracts signed for the current year.
This is the third consecutive year of double-digit increases being faced by the industry, which imports 95 per cent of the 25,000 tonnes of mustard it buys annually from Canada.
Notably, the analysis blames the strong Canadian dollar, which has gained eight per cent in value against the Euro since January, and weather conditions on the Canadian Prairies, which have cut production and tightened world mustard supply.
Higher prices would appear to be good news for Saskatchewan’s 3,000 mustard growers, most of whom are located in the more arid, brown soil zones of the province. They typically plant about 600,000 acres of three types of mustard – brown or Dijon (which represents about 40 per cent of total production), and yellow and oriental (roughly 30 per cent each).
However, for many growers, the price increases are a mixed blessing.
According to Brett Meinert, co-founder and former president of the Saskatchewan Mustard Development Commission, a producer-funded levy organization that has been working to increase profitability for growers since its founding in 2005, higher prices are largely a result of unfavourable climatic conditions that have made growing quality mustard difficult.
“Let’s just say the weather hasn’t been all that helpful the last few years,” says Meinert, who farms near Shaunavon in the southwest corner of the province.
He adds reduced crops have fueled speculation that the current prices of 22 to 24 cents a pound in production contracts could jump to as high as 72 cents next year, matching the all-time high for yellow mustard set several years ago.
While prices of that magnitude would bode well for next year, Meinert says high price prospects can lead to overproduction and reduced prices.