The crop year will end tomorrow showing the largest Canadian wheat exports in nine years and the second-highest grain revenues in history for western Canadian farmers.
CWB president and CEO Ian White said the 2008-09 crop year was marked by strong sales to important new wheat markets in Iran and Saudi Arabia and record bulk exports of Prairie malting barley at record prices for producers.
“The strength and stability of the Canadian grain industry has been a bright spot in the gloomy economic environment over the past year,” White said at the CWB’s annual crop year-end news conference. The CWB exported about 18.5 million tonnes (MT) of wheat, durum and barley during the crop year, the highest volume since 1999-2000 and up over a million tonnes from last year. CWB net revenue, returned directly to farmers, is estimated at more than $6 billion – second only to last year’s $7.2 billion.
However, CWB board chair Larry Hill cautioned that poor weather across the Prairies continues to create concern for the 2009 crop. “Looking ahead, it is now quite certain that drought and cold weather will take a toll,” said Hill, who farms near Swift Current, SK. “We will need near-perfect weather for the rest of the growing season and into the fall to preserve the quality of this year’s crop.”
The CWB today released its second official Prairie-wide crop production estimates for 2009, lowering its all-wheat projections by 600 000 tonnes to 20.2 MT from the last official estimates released in June. The new production estimates are about 20 per cent lower than this year’s production, estimated at 25.5 MT. The new estimates include durum production of 4.2 MT, down 200 000 tonnes from the June estimates, while barley is down 300 000 tonnes to 8.6 MT.
Market volatility and fluctuating currency values continued to pose challenges during 2008-09, but White said the CWB’s disciplined year-long marketing approach and sound risk management practices helped inject stability to farmer returns.
“The effects of the global financial crisis began to increasingly influence agricultural commodities as the crop year progressed,” White said. “In such uncertain times, the CWB’s focus on orderly marketing and careful risk management is particularly valuable.”
Producers’ pooled earnings for malting barley are the highest ever: $5.37 per bushel in Saskatchewan, $5.54 in Manitoba and $5.57 in Alberta (after freight and handling deductions) – up about four per cent from the previous year. Returns for high-quality spring wheat are expected to be $6.61 per bushel in Saskatchewan, $6.76 in Manitoba and $6.82 in Alberta – down about 20 per cent from last year’s record-high returns, but still the second highest on record. For high-quality durum, projected returns are $8.47 in Saskatchewan and $8.56 in Alberta, a 30-per-cent drop from last year’s price peak.
