http://www.reportonfarming.com/ Farming and agriculture news en-us Nucleus CMS v3.23 © Weblog http://backend.userland.com/rss http://www.reportonfarming.com//nucleus/nucleus2.gif http://www.reportonfarming.com/ http://www.reportonfarming.com/index.php?itemid=469
Until official trade data is available from Statistics Canada, the only indication of the health of the export trade comes from the Canadian Grain Commission and the Canadian Ports Clearance Association. Their data reveals that by the middle of November, pea exports through bulk grain terminals are now down almost 180,000 MT from last year. This does not mean that exporters for the entire marketing year will be down as much, but it does raise questions about where field pea prices will go during the balance of the marketing year.

When you are trying to answer this question for yourself, there are couple of things you need to bear in mind. All food products are renewable and it, or a substitute, is being grown somewhere in the world at any given time. This means that shortages are always cured. Secondly, when a food item is not consumed, that demand is lost forever. You compensate for that problem by having as many customers in as many different parts of the world as possible. As usage drops off in one region, we try to expand sales in another.
All of this affects the price which end users are willing to pay for peas, lentils, chickpeas or dry edible beans. When demand is strong, prices tend to be supported or rise. By contrast, when we are creating demand, prices tend to be weaker to encourage buyers to try or use more of our products. As it turns out, this year's field pea markets are providing a mini-lesson for these ideas.

Prices started the season on a strong note as exporters strove to cover huge yellow pea sales commitments to India in September. Even though they were trending lower, grower bids were very strong in July and August as markets tried to convince you to sell as many peas off the combine as possible. As soon as exporters knew they had covered all their needs for shipment from Vancouver in September, they lost interest in buying peas. On August 29 you could sell yellow peas for $7.78 per bushel. A week later, bids were down to $6.65 per bushel. Grower bids have since slipped another 40 cents per bushel, which hardly seems like a sign that there are any problems with exports.

World markets are very different. Export asking prices for whole yellow peas are down sharply. They started the 2008-09 marketing year at U.S. $405 per metric ton. They ended August at $350 on a delivered track Vancouver basis. By the middle of November they had collapsed to $265 per metric ton, with exporters saying prices are still not pulling consumers in through the doors. The only reason grower bids have not fallen as much is that the Canadian dollar fell from 97 cents at the start of the marketing year to 81 cents by the middle of November.

Processors and exporters are worried about buying more peas from growers than they can sell. This is reflected in the fact the grower share of the export asking price for yellow peas fell from 77% in August to 70% by mid-November. The situation is no better in green peas, where the grower share of the export market has plunged from 77% to 60%. Markets for green peas are much higher because of tight supplies, and efforts to slow down the pace of demand to ensure there are enough peas to last the season.

Price is not the only reason demand for pulses has slowed. Exporters and importers do not trust one another. Exporters doubt the ability of importers to pay. Buyers know some traders are having trouble maintaining positive cash flow. There are numerous stories about peas and lentils having been loaded into containers or railcars and not getting to port on time. Sometimes, containers roll from one ship to the next. Too often, the cargo loads to a ship after the contractual shipping period has expired. Sometimes buyers accept the late shipment. Sometimes they demand compensation. Sometimes they refuse to take the cargo and the exporter needs to resell it. Given the high average price paid for most pulses still leaving Canada, shipping delays and contract disputes are having a bigger than usual impact on cash flow.


What does this mean?

The average export selling price for peas and lentils will be significantly lower than it was last season. It will probably be down over U.S. $100 per metric ton for yellow peas, along with green and red lentils. The drop should be less for green peas and kabuli chickpeas. You will be protected from most of the decline as long as the Canadian dollar is around or below 80 cents.

Demand for field peas from human consumption markets will be down over last season. Total demand will be down unless sales to local feed mills and livestock producers improve. This means that the amount of peas left on farms in western Canada will be up by the end of the marketing year.

But, prices for pulses will not be down any more than they are for wheat or canola. The income potential from peas and lentils will still be high enough this season that it will not discourage people from planting these crops next spring. Based on that, I would not want to be one of the people who still have a lot of peas or lentils left in their bins at the end of the marketing year.


By Brian Clancey
Originally published in the December, 2008 edition of the Saskatchewan Pulse Growers Pulse Market Report. Reprinted by permission of the author.
]]> News http://www.reportonfarming.com/index.php?itemid=469 Mon, 8 Dec 2008 16:22:58 +0000 http://www.reportonfarming.com/index.php?itemid=468
The level of frustration, anger, and fear in the industry is typified by an email message which has been sweeping through the trade. Following is the anonymous email message:As a Canadian Exporter of Special Crops We Are:

1) Fully responsible for all pain, hurt and fiscal 'leaks' from any of our customers AND suppliers may feel.

2) We are to meekly accept " it is not our responsibility " when either customer or supplier cry these
words.

3) We are to forgive poor quality received from a grower by blending the hurt away and by suffering the
consequences of an outraged buyer in the event he noticed ?! Same grower is entitled to submit 33
samples of his high priced contract until someone some where agrees with him that it has graded !!

4) We are always responsible for falling markets and we must at all times have a bucket of benevolent
funds to soothe the pain for customers, and give them generous lashings of discounted values.

5) We must always ship in rising markets and expect no thanks, even if same has cost us considerable
pain and dollars.

6) We must always accept that a percentage of growers can walk on contrats in up markets whenever
they feel like it--but if you dare even hint at tit for tat, the pulse police will come a knockin'.

7) We must always accept that the railways can do what they will, when they mess with our goods even
if it is to forget them in some forsaken siding in the deepest recesses of the prairies or if our goods
are routed to a wrong outpost of the N.American continent. At least we should be gratefull that they
moved.

8) We should understand that common sense is on a long vaction and that toll processors do not need
to ask questions, just do..like receiving green bags with the words "lentils" and proceeding to load
yellow peas in them."not our responsibility, its what the bag company sent !! ".(We should not expect a
third party to ever think for us.).

9) We are assumed to be the best currency traders in the world. Deal with it !

10) We are fully responsible for the global credit crisis. Admit to it and move on.

11) We alone know what the markets will do tomorrow.

12) We alone must be happy to deliver paper to a buyer.."it graded" and dare not challenge the system
that now cause us pain.for Example, 30% wrinkled seedcoats in a laird #2 sample. It graded but would
you want to receive it in a falling market ( Yes there seems to be more forgiveness in an up market !!)

13) We alone are expected to sacrifice our "bodies" (aka companies) in the name of market integrity,
when market commentators can play scaremonger and quickly "help" denude values.

14) We alone are not allowed to measure integriety in dollars and cents.

15) We alone are not permitted to call a defaulter "a cheat" least we hurt the sensibilities of the politically
correct.

16) We alone are expected to and must establish a bond to protect the integrity of values committed to
growers, and have same scrutinized by the pulse police.

17) We alone are responsible for no containers available, dirty containers, containers with holes,
containers dropped from loading cranes, containers shipped 'on board' (but not really!!), containers left
behind, containers stuck or lost in transhipment, containers arriving with seals in tact but empty (yes it
happens!), rusty and hole 'y' containers, missing containers at destination, containers on demurrage,
containers subject to every surcharge man could dream and scheme--including but not limited to, CAF,
BAF, Fuel Surcharged, GRI, PHC (previous hazardous carge.)

18) We alone are responsible to ship IP goods, Be ISO and HCCP approved. Go green, Carbon emission
conscious, Nitrogen fixated etc ! Eat healthily.

19) We can not steal another competitors exclusive seed variety but you can take mine !

20) With a smile and with these subjective credentials, perhaps members of the CSCA are the very best
equipped to take over Ottawa and lead the country. We know how to take it on the chin. Give away
bucket loads of cash, manage a budget and be responsible for every ones woes----everyones!!!]]> Commentary http://www.reportonfarming.com/index.php?itemid=468 Fri, 5 Dec 2008 18:59:01 +0000 http://www.reportonfarming.com/index.php?itemid=467
However, the inability of the Conservative Party to obtain more than minority support from Canadian voters prevented it from gaining the majority needed to change the way western Canadian is marketed.

The only way to fundamentally change grain marketing in western Canada would have been to capitulate to the will of the Canadian electorate and work in deep cooperation with at least one of the opposition parties. Such a coalition would have enabled the Conservatives to move forward on numerous fronts and avoid the current political turmoil.

Unfortunately, cooperation does not seem to be part of Harper's chemistry. In defiance of the wishes of the Canadian electorate he has instead tried to beat and bully the opposition parties and the majority of Canadian into submission. This neither leadership nor the type of politics Canadians voted for in the last election. They clearly voted for a coalition government, asking Harper to be its leader. Instead, he refuses to lead a coalition, gambling with the future of both his government and his "leadership".]]> The Editor's Desk http://www.reportonfarming.com/index.php?itemid=467 Tue, 2 Dec 2008 18:33:29 +0000 http://www.reportonfarming.com/index.php?itemid=466
On September 21, agriculture minister Gerry Ritz finally responded publicly to the request. He said farmers are just going to have to keep waiting while he studies the matter.

"My departmental officials and I are working hard to do the due diligence to review the request, and deliver the best possible decision as quickly as possible."

At the same time, Ritz slammed the wheat board for waiting until August 15 to make the request. He said it was obvious wheat and malting barley prices were rising.

Why is the minister refusing to act when it is still, to quote Ritz, "clear that commodity prices were rising". Please, Minister Ritz, stop making farmers pay for your antagonism toward the wheat board and let them have access to their money!]]> News http://www.reportonfarming.com/index.php?itemid=466 Sat, 22 Sep 2007 07:38:08 +0000 http://www.reportonfarming.com/index.php?itemid=465
Farm operators aged 55 and over were less likely in 2001 to have reported a farm injury than those in younger age categories, contrary to what is usually expected in the industry. In fact, operators younger than 35 were more likely to have a farm injury.
The results suggest that know-how from farming experience may more than offset the effect of the aging process on the probability of having a farm injury.

The study examined the relationship between the likelihood of a farm operator suffering a farm-related injury and the characteristics of the farm and the farm operator. It was based on data from the 2001 Census of Agriculture.



More Injuries on Bigger Farms


Exposure to farm work, such as working on a farm with a sizable beef cattle herd and those with a large area under cultivation, increased the probability of farm injury. Operators of poultry and field crop farms were less likely than other farm types to suffer a farm-related injury.

The study also looked at the relationship between reported farm injury and the amount of hours an operator worked on and off the farm. The results showed that operators working fewer than 20 hours per week on the farm were 2.4 times more likely to report a farm injury than those working more than 40 hours per week on the farm.

Similarly, operators working off the farm for more than 40 hours per week were more likely to get injured while doing farm-related activities than those working fewer hours per week off-farm.

On May 16, 2007, the release of the 2006 Census of Agriculture results will enable new analysis on the topic of farm-related injuries. It will provide different but more detailed information on farm injuries. The census asked respondents to report farm injuries requiring medical attention for operators, other family members and other persons by type of injury.]]> On the Farm http://www.reportonfarming.com/index.php?itemid=465 Wed, 11 Apr 2007 08:42:42 +0000 http://www.reportonfarming.com/index.php?itemid=462
The on-line self-assessment tool looks at safe and fair working conditions, integrated pest management, soil and water conservation, and wildlife habitat conservation. In each of these areas, the tool provides background information on issues and risk manag ement strategies, and links to resources and incentives to help farmers improve their management practices.

Farmers who enter information on their operation and practices can also receive an assessment of whether they would qualify for Food Alliance certification, or whether their management practices might support other “values-added” marketing opportunities. All information entered is kept strictly confidential.

“Years of work by university and agency researchers, and by representatives of labor and environmental organizations have gone into developing Food Alliance’s certification standards for sustainable agriculture,” said Food Alliance Executive Director Scott Exo. “This self assessment tool gives us a means to share that work with a broader farmer audience. The market for sustainably-grown agricultural products is growing rapidly. This tool should help farmers get a better sense of the requirements and how diff icult or easy it might be to tap that market.”

Interested farmers should visit http://sat.foodalliance.org for more information.]]> News http://www.reportonfarming.com/index.php?itemid=462 Fri, 9 Mar 2007 08:20:55 +0000 http://www.reportonfarming.com/index.php?itemid=459
Farmers received $23.4 billion in market revenue between January and September, up 0.6% from the same period last year. This total was 3.5% below the 2001 peak of $24.2 billion, and only 0.9% above the previous five-year average between 2001 and 2005.

Crop receipts amounted to $10.1 billion, up 3.9% over the January to September period last year and 1.1% higher than the previous five-year average. Large production in both 2005 and 2006 contributed to increased deliveries of grains and oilseeds.

On the other hand, livestock receipts fell 1.8% to $13.3 billion, as lower hog revenues more than offset higher cattle and calf receipts. However, livestock revenues were 0.7% above the previous five-year average, which included the impact of the bovine spongiform encephalopathy (BSE) crisis.

Farmers received $3.5 billion in program payments during the first nine months of 2006, down 9.4% from the record high set over the same period in 2005. Despite the decline, the total was 18.4% above the previous five-year average.

Total farm cash receipts, crop and livestock revenues plus program payments, were $26.9 billion through the first nine months of 2006. This was 0.9% lower than the record for the same period in 2005, but 2.9% higher than the five-year average.]]> On the Farm http://www.reportonfarming.com/index.php?itemid=459 Fri, 24 Nov 2006 07:07:12 +0000 http://www.reportonfarming.com/index.php?itemid=458
Vicki Dutton, who is running as a candidate for the CWB board of directors in District 5, said the government should take the opportunity to redress past wrongs to western Canadian farmers by offering appropriate compensation for the loss of the single desk marketing system.

"If we cannot agree on how we market wheat and barley, let us at least agree that this asset be used as bargaining power going forward," she argues.

"The Conservative Government has an opportunity to right a major wrong caused to western Canadian farmers by the former Liberal Government during the Western Grain Transportation Act (WGTA) payout procedures," Dutton said in a press statement.

"The previous Progressive Conservative party suggested that $7 billion was an appropriate amount to dissolve the obligations under the WGTA; however, the Liberal government allocated a paltry $1.6 billion and farmers have suffered ever since."

Dutton argues, "The writing is on the wall for the Canadian Wheat Board (CWB) whether we like it as our marketing
agency or not. It is going to be forced to change -- just as the abolishment of the CROW was forced on
farmers -- and farmers to this day feel that pain.

"If all sides of the CWB continue to argue in the same fashion as the WGTA debate, the end result will look the same -- that farmers argued away a bargaining chip and watched the value disappear over time. We can continue to debate the advantages and disadvantages of the single desk but while we are doing so, the value of the CWB as an entity will diminish -- just as it did in the WGTA debate."]]> News http://www.reportonfarming.com/index.php?itemid=458 Wed, 22 Nov 2006 14:26:37 +0000 http://www.reportonfarming.com/index.php?itemid=457
The September feed barley price in Alberta was $100.30 per metric ton, up 10% from one month earlier and up 13% from the September 2005 price of $88.49.]]> News http://www.reportonfarming.com/index.php?itemid=457 Tue, 14 Nov 2006 09:09:29 +0000 http://www.reportonfarming.com/index.php?itemid=456
The surveyed items increased $1.18 in the third quarter of 2006, compared to the second quarter, when the survey items dropped by 82 cents. Of the 16 items surveyed, nine increased and seven decreased in average price compared to the 2006 second-quarter survey. Red Delicious apples showed the largest increase, up 33 cents to $1.51 per pound.


Other items that increased in price:
- Bacon, up 32 cents per pound to $3.39;
- Flour, up 25 cents to $1.88 per 5-pound bag;
- Mayonnaise, up 24 cents to $3.37 per 32-ounce jar;
- Toasted oat cereal, up 21 cents to $3.10 per 10-ounce box;
- Whole chicken fryers, up 10 cents to $1.38 per pound;
- Vegetable oil, up 4 cents to $2.57 per 32-ounce bottle;
- Eggs, up 3 cents to $1.08 per dozen; and
- Cheddar cheese, up 1 cent to $3.52 per pound.

Items that decreased in price from the first quarter of 2006 were:
- Corn oil, down 10 cents to $2.70 per 32-ounce bottle;
- Bread, down 8 cents to $1.44 per 20-ounce loaf;
- Russett potatoes, down 6 cents to $2.45 for a 5-pound bag;
- Pork chops, down 5 cents to $3.32 per pound;
- Sirloin tip roast, down 4 cents to $3.70 per pound;
- Ground chuck down 1 cent to $2.65 per pound
- Whole milk down 1 cent to $3.03 per gallon

"Weather-related yield reductions in Washington state, home to nearly 60% of U.S. apple production, contributed to the retail price increase for apples," said AFBF economist Jim Sartwelle. "Relatively stable retail beef and pork chop prices in the third quarter were not surprising. The supply of cattle and hogs was more than sufficient to satisfy consumer demand," he said.

The share of the average food dollar that America's farm and ranch families receive has dropped over time, despite gradual increases in retail grocery prices.

"If you look back to the mid-1970s, at that time farmers received an average of one-third of consumer retail food expenditures. That figure has dropped steadily over time and is now just 22%, according to Agriculture Department statistics," Sartwelle said.

Using that percentage across-the-board, the farmer's share of this quarter's $41.09 marketbasket total would be $9.04.

According to the U.S. Department of Agriculture, Americans spend less than 10% of their disposable income on food annually, the lowest average of any country in the world.

AFBF, the nation's largest general farm organization, conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends. A total of 61 volunteer shoppers in 29 states, including Michigan, participated in this latest survey, conducted during August.
]]> News http://www.reportonfarming.com/index.php?itemid=456 Thu, 12 Oct 2006 10:20:22 +0000