The CWB has signed its largest long-term agreement for malting barley sales during a trip to China this week with Agriculture Minister Gerry Ritz and other commodity groups.
The deal, worth more than $100 million to Prairie farmers at current values, is for at least 500 000 tonnes of malting barley over three years. It will result in guaranteed minimum sales of 150 000 tonnes each year to COFCO, the largest Chinese buyer of Canadian grain.
“As beer consumption continues to increase in China, Canadian malting barley has secured an important position in supplying Chinese brewers with high-quality product,” CWB president and CEO Ian White said. “Western Canadian farmers have achieved a significant piece of premium business in a highly competitive and volatile market. The support of Minister Ritz is important to achieving these types of positive outcomes for producers.”
The CWB has a long-standing relationship with COFCO, beginning in 1961 when the CWB was among the first foreign traders to conduct business with the new People’s Republic of China. This role paved the way for Canada-China diplomatic relations to begin in 1970 and has continued to open doors for other agricultural commodities from Canada.
Agreements were also signed this week that will benefit Prairie pulse growers, through the work of Pulse Canada and the Canadian International Grains Institute.
“Cooperation between Canadian commodity groups and the Government of Canada is paying off in China in terms of more business for the farmers we all serve,” White said. “Our farmer stakeholders are also pulse and canola growers, beef and swine producers. When we all work together, they win.”
The CWB sells an average of 400 000 tonnes of bulk malting barley to China each year and expects to significantly surpass that tonnage in the current crop year. White said the new agreement with COFCO will help increase annual exports even further.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada’s biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.
