Saskatchewan Exports Opportunities and Challenges July 21, 2015

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1 Saskatchewan Exports Opportunities and Challenges July 21, 2015

2 Highlights Overview of STEP Exports Saskatchewan and Agriculture Export Challenges and Opportunities STEP Around the World Taking Saskatchewan s Best to the World

3 About STEP Founded in 1996 Unique public-private partnership Member-based organization with over 450 members approx. ½ in agriculture Offices in both Regina and Saskatoon with members across the province Governed by a 15 member Board of Directors

4 Saskatchewan based-companies STEP Members are: Strategy is to pursue export markets (anywhere outside of SK) Small, medium and large companies Existing exporters & export-ready companies Offering an exportable product/service and;

5 STEP Membership Regular Companies currently exporting or getting ready to export a product/service Companies providing services to exporters or have an interest in international trade Associate

6 Simply put STEP s Role: Export Catalyst We develop opportunities for interaction between Saskatchewan companies and potential partners in the international marketplace.

7 Saskatchewan Exports Abroad Year Value in CAD 1996 $9.353B 2001 $11.732B 2006 $16.398B 2011 $29.562B 2012 $32.630B 2014 $35.307B

8 Saskatchewan Our Core Strengths Agriculture Oil and Gas Mining Manufacturing

9 Top 7 Saskatchewan Exports Abroad in 2014 Product Value in 000 CAD Crude Petroleum Oils 13,190,874 Potassium Chloride (Potash) 4,977,048 Canola Seeds 2,559,717 Meslin and Wheat 2,207,493 Durum Wheat 1,900,461 Lentils 1,409,945 Peas 1,247,262

10 Saskatchewan Agriculture Exports Year Value in CAD 2010 $8,288, $10,186, $11,146, $11,663, $13,916,

11 Agriculture Saskatchewan is home to over 41% of Canada s arable farm land with nearly 26 million hectares (61 million acres) Agricultural exports from Saskatchewan are valued at over $13.9 billion (2014) World's top exporter of green lentils, chickpeas, mustard and canary seed Saskatchewan supplies 10% of the worlds total exported wheat

12 Agriculture SK accounts for 45% of Canada s canola production. SK grows more than 75% of the peas produced in Canada. Major world supplier of food ingredients, food, livestock, and natural & organic products Saskatoon is home to 1/3 of Canada s Agriculture Biotechnology sector Agri-food research and development (animal genetics, R & D services, etc.)

13 In 2013, Saskatchewan was responsible for: 65% of the world s lentil exports 54% of the world s pea exports 34% of the world s durum exports 27% of the world s mustard exports 23% of the world s canola meal exports 32% of the world s flaxseed exports 16% of the world s canola seed exports 17% of the world s canola oil exports

14 Top Saskatchewan Export Markets

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16 Challenges in Exporting Differing cultures, business practices, currencies, complex regulations, tariff and nontariff barriers, language barriers, shipping problems, identifying customers/agents, financing, etc. Volatility in Cdn/USD $ Ongoing world economic ups and / downs - recessions/depressions/recoveries. Protectionism particularly in tougher economic times (Brazil, former CIS customs union, even the USA despite NAFTA) Payment challenges from international customers For Saskatchewan companies, the challenges can be daunting

17 Where is Saskatchewan?

18 Export Infrastructure Transportation infrastructure vital to support exports Headline - Western Producer - Apr. 3, 2014 An export-driven policy that doesn t take the necessary export infrastructure into consideration is not sustainable.

19 Export Infrastructure - Highway systems (local included) - Railway systems - Port capacity (nationally and internationally) - Ocean vessels TO the international ports receiving our goods. -Plus other transportation modes pipelines, air, etc. - Important to Saskatchewan that we are aligned with our key markets... global solutions required.

20 What STEP does for Saskatchewan Exporters Outbound Business Development Missions Inbound Buyers Missions Customized Market Intelligence Reports Export Market Counseling Qualified Trade Leads Educational Seminars on Export Topics Logistics & Finance Counseling Trade Finance Counseling STEP Export Programs (MAP, Exporter Readiness)

21 STEP Outgoing Trade Missions

22 Arranged Programs For Buyers From 29 Countries in

23 Export Opportunities FTA s South Korea, Ukraine, Columbia, etc. Others in the works India, etc Opportunities Vary by Market Developing markets tend to be commodity specific Asia and other emerging markets are commodities and niche value-added opportunities... but changing Developed markets tend to be a better market for value-added products

24 Export Opportunities - Agricultural commodities (grains, pulses, oilseeds) - Livestock & genetics - Food ingredients - Feed & pet food ingredients & supplements - Organics, functional foods, nutraceuticals & other niche products - Specialty/gourmet - retail & foodservice - Fruits, herbs & spices, seed potatoes - Biotechnology, bio-products & bio-energy

25 Export Trends Producer direct Protein shift to meat Food Intolerance Products are the big thing Lactose Free, Gluten-free and Diabetic Food Non-GMO

26 Around the World Kiev, Ukraine Russia 2011 Seed Potato Mission Grain Tech Expo 2013

27 Around the World Nuremberg, Germany BIOFACH 2015 China Mission 2011

28 Around the World Uruguay Expo Activa 2014

29 Around the World Chicago, Il IFT July 2015

30 STEP Online: Member Showcase: Saskatchewan exporters listed by sector. Market Reports: Preview and purchase in-depth market reports and guides. STEP Activities: Trip reports by our trade staff and Calendar of Events detailing upcoming trade missions and events. Connect with STEP: More information at Company: Saskatchewan Trade and Export Partnership

31 We are proud to take Saskatchewan s best to the world! Inquires Phone: XPORTSK ( ) inquire@sasktrade.sk.ca