Looking at changes in Canadian Agriculture

[ValueChainFX]

Join us with your solutions to what changes need to be made in the agriculture industry.

Come to the Value Added forum and share your thoughts, try to keep them positive and let's see what happens.
See you there!

[wd9]

I thought these discussions were moderated. Let's keep the ads out of this forum please, otherwise it can quickly become out of control.

[charliep]

Value added (actually agri food and value added) is one of the chat areas in agri-ville. There is a good discussion going on how agriculture responds to the new world of higher attention to things like BSE.

[wd9]

Just thought topics to this forum should be concerned with marketing, that's all.

[ValueChainFX]

wd9, thank you for your interest in keeping things clean in here. Part of the challenges we have all faced is we have looked at some of these topics as separate issues. Our present situation has lots to do with marketing, especially considering the fact that producers have little access to a national or global market even when the boarders are wide open. At least in the meat sector!

Marketers of all ag-products have a stake in the meat industry as we are all so closely linked in one way or another.

Your thoughts wd9?

[charliep]

WD9

One of my favorite expressions these days is "There but the grace of God go I".

The BSE issue is somewhat remote to crops except as it impacts the demand for feed grains.

The crops industry also needs to look at the importance of tracking systems in case this industry ever faces the same type of issue - an unregistered pesticide/herbicide residue issue. A disease issue (karnal bunt). If you think back, the grain industry has been down this road with the deer crap issue in export cargoes a few years ago.

Looking ahead, there are also likely to be other issues coming along that the grain industry can use the experience from BSE. A potential move from Kernel Visual Distinquishability to Varietal Eligibility Declarations to who knows what for grading purposes. The introduction of GMO/Roundup ready wheat.

Lots of issues facing the ag. industry. Hopefully we can lean from others experiences/have plans in place to deal with potential issues including risk assessment and tracking.

[melvill]

Further to Charlie's comments about the ability to track or trace farm products, I was at a workshop in Edmonton 10 or 11 or maybe 12 years ago. One of the speakers talked about the trace back system that is in place for all fresh produce produced in the UK. This system was demanded by retailers based on pressure from consumers. Basically, what it boiled down to is that each container (box or crate or ??) of produce was individually identified so that it could be traced back to not only the farm it was grown on but the actual row it was grown in and which part of the row. Then the complete agronomic history of that produce - seeding date, fertilizer amount and type, pesticides applied and date, and much, much more - was available from the producer's records.

That kind of detail makes most N. American producers shudder but we must be mindful that consumers are becoming ever more demanding. The other side of the coin, of course, is that things like the Alberta BSE issue show us how badly we need a detailed tracking system.

[ValueChainFX]

melvill or anyone else is there trace back for crops being worked on in Canada now or are there systems that are working in the world today? If so do you have any web sites you may point me to so I can find out more info or names whatever?

What are your thoughts suggestions comments on this subject? We all know it's coming!

[TOM4CWB]

ValueChainFX;

Every load of grain I haul to an elevator is sampled to specific CGC standards, then graded, then the representitive sample is saved. I also have samples saved of the specific fields we grew, and can trace back our elevator grain receipts to each field sample. Our seed system is based on these same principals, which have specific time periods that authorised establishments must retain IP samples.

[wd9]

ValueChainFX, I agree and it is true that many of the important issues facing producers really do not have a particular forum within Agri-ville. Issues span forums and can be quite complex. A few issues without a home in Agri-ville may be:

Food safety issues - the record keeping and auditing of the proposed system for both crops and beef will be costly and time consuming. It will be here faster than most thought possible. Auditors are being hired right now.

Trade barriers both national and international, tariffs, subsidies, and on and on - factors that contribute to a declining margin for producers. I feel the single most important issue facing producers period.

Safety nets that stabilize that declining margin on the way down.

Genetically modified organisms. Issues are social, political, and scientific. Groups focusing on issues such as Roundup Wheat when the real issue is the whole biotechnology industry and the long term profitability of that industry, our ability to compete globally.

Issues like BSE, staggering from a risk and scientific perspective that it is even a blip of concern compared to almost any other disease in America. Seems like a great strategy if (insert appropriate country) wanted to buy into a feedlot industry at 50 cents on the dollar.

Kyoto - If any of you are familiar with the 1990 business as usual model - need I say more? Give credit where credit is due.

Endless lists of proposed regulation for our country while many of our competitors not having these regs will make great strides ahead of us. Yes, one day they will be regulated too, but will we be around? Some RR crops grown in other countries do not have a TUA cost. How can we compete with that? Our own government sending millions of aid dollars to other countries to improve their ag industries - our competitors - and this helps us how???

A traceback system proposed by the Canadian Grain Commission made the rounds the last few months and in my opinion the biggest problem was that it had an incomplete business plan. I do agree with the premise that a producer who grows non-registered varieties should be singled out - but making a producer responsible for contaminating a cargo of grain, I don't think I could sleep at nights. The only way I can 100% ensure my product is contaminant free is to test for all pesticides and varieties utilizing mass spec and other technology at a cost of around $5000. Worth it for a cargo going across the ocean, but a B-train to the elevator? Technology needs to make major leaps forward before some of these things can realistically be accomplished. Sure I can declare I have AC Barrie wheat on my truck, but how do I know if spray drift did not contaminate my crop without my knowledge. Ignorance does not prevent me from contaminating a cargo, or to be sued for damages - even though the original intent was only based on variety. More info can be found at the CGC website: http://www.grainscanada.gc.ca/Pubs/discussions/ved/ved01-e.htm or go to www.google.ca and enter in quotes "variety eligibility declaration" and check out the 76 hits.

I could go on, but what we need certainly are answers to these questions. I do not have them. I will not pretend to have them. National committees are formed for these issues, yet some are not even listened to by the government who created the committee. Very frustrating for those who give up time from their farming operations only to be ignored, or have the rules changed every three months and are forced to start from scratch time after time.

I keep looking to this forum for answers. Ask any farmer what the government should do for ag within the constraints of political, social, economic, trade, and customer requirements and it seems for any answer there are 150 repercussions against it. There are some very well informed people chatting on these forums with a HUGE crowd reading them.

I can suggest one answer is to talk to your MLA and MP and make sure you understand what their point of view on the issues are. Make sure they understand your point of view and your concerns for the future of the ag industry.

I'm excited about the future of Ag despite the challenges. Advances in biotech and specialty crops will require individuals to produce them. I know I'm one of them.

Even though this answer is not about marketing, I hope the directors of Agri-ville find a way to encompass some of these more broader issues not limited to just crops or beef or diversified but affect the entire ag industry in a rural, national and international way.

[charliep]

ValueChainFX;

I am always hesitant to give names because I always leave people out but here are a couple of ideas.

1) Warbutons contract with United Agricore/Patterson Grain and the CWB.

2) Agtrace (http://www.agtrace.com/)

3) Graintrax (contact Paul Cassidy - Mitcon).

4) SGS (http://www.sgs.com/sgsagri.nsf/pages/home.html) - International company mainly at port but have seen the hint of business relationships within Canada at farm level.

There are others I have left out. Hopefully others can fill in some of my gaps.

[charliep]

One more.

http://www.acurum.com

[ValueChainFX]

Thanks charlie, do you think this is the tracking that we will see coming in or do you feel we are going to end up with something a little different?

Can you think of any way it would be made easier for the producer? Or is this system easy throughout the system?

Thanks

[charliep]

I forgot all the specialty oil canola and other crops. Somehow these products are monitored through the system to ensure what is delivered matches what was contracted.

Most of the products computerized tracking systems supported by sampling along the way. They can involve recording at the farm level (prior rotations, agronomic practices, herbicides/pesticides used/timing, etc.). Sampling at every stage of the is also a critical element. Dealing with people that can be trusted and accepted protocols are critical to success. An outside agency (CGC, SGS) is needed to verify/mediate disputes in the case of disagreement.

Are there ways to make easy for the farmer? There is no getting around the extra time/effort but perhaps this is a cost of good business. Maybe a bad example but I look at two farmers maintaining equipment. One just gets in an goes - the benefit is less time spent but the cost is more breakdowns. Another goes over their equipment every morning in a disciplined fashion. Who is going to be better off long run?

[charliep]

As a note, I appreciate your comments WD9. The issues you mention are key to the future of your business. I don't have all the answers and I benefit greatly from the ideas presented here.