As Canada and China mark the 40th anniversary of diplomatic relations, the Canadian Wheat Board is celebrating nearly 50 years of trade with the economic giant.
Over that time, China has imported more than 120 million tonnes of western Canadian wheat and barley – enough to make 279 billion loaves of bread and 55 billion bottles of beer.
“As Canada and China mark a major milestone in diplomatic relations, the CWB is proud of its role in helping to forge a relationship between both nations,” says Ward Weisensel, CWB chief operating officer, who has just returned from Beijing, where he visited major customers. “We signed our first long-term trade agreement with China in 1961, and today China continues to be a major customer of western Canadian grain.”
Wheat trade between the two nations began during a period of famine in China, and the CWB became one of the first foreign businesses to deal with the new People’s Republic of China. The wheat trade is widely recognized as a major foundation of Canada-China relations.
Celebrations of the 40th anniversary of diplomatic relations get underway today at a reception in Ottawa, attended by CWB representatives, Chinese and Canadian government officials, and business leaders from other major Canadian companies doing business in China. The CWB will participate in 40th anniversary celebrations throughout the year, and will host a special event for its customers this July at Expo 2010 in Shanghai.
While wheat continues to play a major role in the CWB’s relationship with China, exports of malting barley have now become a significant part of the trade. China is the world’s largest beer producer, brewing more than 43 billion litres a year. (By comparison, about two billion litres are produced annually in Canada.) China is also the largest importer of western Canadian malting barley, importing an average of 386 000 tonnes per year over the past ten years.
In addition to increased beer consumption, growing affluence in China has created a niche-market for premium wheat flour. The CWB is participating in a unique branding initiative with the Guchuan Food Company, in which dumpling flour made from Canada Western Red Spring wheat is being distributed in bags and gift boxes designed jointly by the CWB and Guchuan.
The CWB has maintained an office in Beijing since 1994, one of only two CWB offices located outside of Canada.
