canada’s changing environment · albertawheat.com canada in progress • december 2011 –federal...
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Canada’s Changing Environment
Jeff JacksonMarkets Manager
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Why Make Changes?The history of modern rail gauge.
It is possible for an industry to become stuck in a rut.
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Canada in Progress• December 2011 – Federal Government announces
changes to single desk monopoly effective Aug 2012.
• August 2012 – First time in more than 70 years there were multiple buyers and sellers of wheat in Canada.
• December 2012 – Legislative change requiring Canadian Grain Commission (CGC) to become self sufficient.
• February 2013 – Federal Government encourages the streamlining of the variety registration process.
• Present - Cereals Canada is conducting a wheat industry analysis.
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Transportation and Logistics
Canada has some challenges to
overcome
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Solutions for Canadian Logistics
Government is engaged
Industry is engaged
Growers are engaged
Image from Canada Transportation Agency
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Western Canadian Yield Trend
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Western Canada Yield
Linear (Western CanadaYield)
Source: Stats Can
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Government Engagement
Bill C-30 “Fair Rail for Farmers Act”
Created with extensive grower consultation to:
Increase supply chain transparency (weekly reporting by Quorum Corp.
Increase efficiency by increasing competition.
Strengthen contracts between producers and shippers.
Help ensure entire grain handling and transportation system is working efficiently and at capacity.
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Industry Engagement More than $700 million capital improvement to Port
of Metro Vancouver.
Industry and growers to match $1.5 million from Government for investment in strategic rail review
Grower Commodity Groups
Trade Associations
Grain Handling and Export Assertions
Transportation Associations
Additional industry
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Canadian Grower Wheat Trends
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Total Wheat
Winter Wheat
Spring Wheat
Durum Wheat
Source: Stats Can
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Recent Wheat Trends
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2010 2011 2012 2013 2014
Total Wheat
Winter Wheat
Spring Wheat
Durum Wheat
Source: Stats Can
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Where is the Growth?
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Trade Patterns for Canadian Wheat Japan – an important market but less attention now
that premium for CWRS is dropping.
Increased interest in West Africa to use Canadian wheat to improve wheat from other origins, as imports into this region rise.
Asia - interest to use durum flour in noodle products and pasta is beginning to take hold.
Canadian wheat often traded now on spec, rather than class and grade and this is affecting the brand value of Canadian wheat.
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Canadian Specialty Wheat Opportunities
Canadian Western Red Winter (CWRW) and Canadian Prairie Spring Red (CPSR)
CWRW - high quality wheat with the whitest flour of any wheat.
CPSR - excellent bread and specific noodle wheat, interest is gaining.
Customers now request market and harvest information on these classes and exporters will start to pay attention to promote the smaller classes.
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Canadian Specialty Wheat Opportunities
Canadian Western Hard White Spring(CWHWS) and Canadian Western Extra Strong (CWES)
CWHSW - great wheat but production not significant as does not agronomically compete well with CWRS, and sells in same price category, more work to be done.
CWES - little promotional work today, only one market in Italy for Panatoni bread at Christmas. Canadian International Grains Institute (CIGI) sees value in it to blend with other wheat due to its extremely strong protein.
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Putting Change into Perspective
Comedian Steven Wright on progress:
"I have a microwave fireplace at home. You can lay down in front of the fire all night in eight minutes."
• Improvement is not always fast.
• It depends on the creation and realization of new possibilities.
• It occurs with some amount of pain.
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Thank You!
Contact Info:Jeff JacksonMarkets ManagerAlberta Wheat Commission#200, 6815 8th St. NECalgary, AB T2E 7H7P. 403.219.7908E. [email protected]