January 16, 2012 World Wheat Production and Markets With Western Canadian farmers getting prepared to market their future wheat crops without a Canadian Wheat Board as it presently exists, a review of the world wheat situation is in order. On a world scale, wheat is the second most produced crop in the world (approximately 680 million metric tonnes produced annually), following only world corn production (820 MMT). However, unlike corn, it is primarily used for human consumption. The four major types of wheat (hard red, soft red, white and durum wheat) are harvested every month somewhere in the world. Because of this on-going world production and consumption, it is important to be aware globally of what is happening in the various major wheat production areas in the world to enable producers to capture better returns for the wheat grown, says David Wong, market specialist with Alberta Agriculture and Rural Development. But, it isn t just where the wheat is grown, it s also if the exporting countries have a good crop or not. The top two wheat producing countries in the world are China and India. These countries also have the two largest populations in the world, and neither country exports any of the wheat that they produce. However, market watchers must keep an eye on their consumption levels, and any signs of production shortfalls due primarily to adverse weather conditions (drought, monsoons). The U.S. is considered the number one exporter of wheat worldwide. Although U.S. production is slightly below typical Russian production, it has a smaller population, and is therefore the bigger player on the world export market. As such, the U.S. plays a more dominating role in world wheat pricing. Following the U.S., France is the number 2 country in world wheat exported. The EU is the major player in world wheat trade. The EU has 27 countries as part of their union, and the main exporters from the EU are France, Germany and the United Kingdom. This Week Cont d on page 2 World Wheat Production and Markets 1 Allergic and Gluten Free Living Workshop 3 Still Time to Register for Banff Pork Seminar 2012 3 The Days are Getting Longer! 4 Changes to the Barley and Wheat Marketing System Information Session 5 Agri-News Briefs 6
January 16, 2012 page 2 World Wheat Harvesting Calendar Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Western Europe X X X X X Eastern Europe X X X X Africa X X X X X X X X X X Asia X X X X X X X X Oceania X X X X North America X X X X X X South America X X X X = wheat crop harvest Canada, which grows the majority of the worlds high protein wheat, ranks sixth in world wheat production, but holds down third spot on the world wheat exporting scene, adds Wong. The table below shows how much wheat is produced in the world s countries, and how they rank as a wheat exporting nation. World Wheat Production by Country/Region (MMT) 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 EU (Total) 138.5 150.3 120.1 126.7 135.4 149.4 111.7 133.6 126.6 132.4 France* (2) 38.3 39.0 33.2 35.4 36.9 39.7 30.5 38.9 31.5 37.5 Germany* 25.2 26.0 21.4 22.4 23.6 25.4 19.3 20.8 22.8 21.6 UK* 14.4 17.2 13.4 14.7 15.0 15.5 14.3 16.0 11.6 16.8 China 115.1 112.5 109.9 104.5 96.3 91.6 86.5 90.3 93.9 99.7 India 80.7 78.6 74.9 69.4 72.0 72.1 65.1 72.8 69.7 76.4 Russia (8) 61.7 63.7 49.4 45.0 47.6 45.4 34.1 50.6 47.0 34.5 United States (1) 60.3 68.0 53.6 57.3 57.1 58.7 63.8 44.1 53.3 60.8 Canada (3) 26.8 28.6 20.6 27.3 25.6 25.9 23.6 16.2 20.6 26.8 Pakistan 24.0 21.0 23.5 21.3 21.6 19.5 19.2 18.2 19.0 21.1 Australia (4) 21.7 21.4 13.0 10.8 25.1 21.9 26.1 10.1 24.3 18.5 Ukraine (6) 20.9 25.9 13.8 14.0 18.7 17.5 6.9 20.6 21.4 10.2 Turkey (9) 20.6 17.8 17.7 20.0 21.0 21.0 19.0 19.5 19.0 17.5 Kazakhstan (7) 17.1 12.6 16.5 13.5 11.1 9.9 11.5 12.7 12.7 9.1 Iran 13.5 8.0 15.9 14.5 14.5 14.0 13.4 12.5 9.5 7.0 Poland 9.8 9.3 8.4 7.1 8.6 9.9 7.9 9.3 9.3 8.5 Egypt 8.5 8.0 7.4 8.3 8.1 7.2 6.8 6.6 6.3 6.6 Argentina (5) 7.5 8.5 16.5 14.0 16.0 14.6 14.5 12.3 15.4 16.5 Brazil (10) 5.1 6.0 4.1 2.5 5.2 5.7 6.2 3.1 3.4 1.7 16 + countries 53.8 43.2 41.7 49.7 44.8 49.0 44.0 42.2 38.3 38.8 World Total 685.6 683.4 607 605.9 628.7 633.3 560.3 574.7 589.7 586.1 * France, Germany, UK: as members in the EU, production numbers are included in EU total (#) = countries rank as world wheat exporter Cont d on page 3
January 16, 2012 page 3 With the world watching the various wheat production regions of the world, as well as the demand by various countries for wheat, wheat pricing is typically based off the U.S. wheat futures markets, namely: Kansas City Board of Trade (KCBT): hard red winter wheat Chicago Board of Trade (CBOT/CME): soft red winter wheat Minneapolis Grain Exchange (MGE): hard red spring wheat Although there are other wheat futures markets in the world, price discovery typically follows these marketplaces. The Winnipeg Commodity Exchange has announced that they will be offering both hard red spring wheat and durum wheat contracts starting on January 23, 2012. It is expected that these contracts will be used by buyers in pricing wheat in Western Canada. The marketing of wheat in the Canadian prairies will change this year, and the more producers know about wheat production and demand worldwide, the more they will be able to make better wheat marketing decisions, says Wong. Contact: David K. Wong 310-FARM (3276) Allergic and Gluten Free Living Workshop Approximately 7.5 per cent of the Canadian population, representing over 2.5 million people, is affected by food allergies and another 250,000 have celiac disease. This number has been rising owing to better diagnosis, more awareness and to an overall increased incidence of food intolerance. Currently there is no cure for food allergies or for celiac disease, so those affected have no choice but to avoid offending foods, says Annette Anderwald, with Alberta Agriculture and Rural Development. This means that the market opportunities for free from (gluten-free, dairy-free, nut-free, and others) food products are booming. A recent study indicated that the global food allergy and intolerance products market is projected to surpass $26 billion by the year 2017. A workshop is being organized for Alberta producers and processor who want to create products that serve this market. The Allergic and Gluten Free Living Workshop is being offered by Alberta Agriculture and Rural Development in Edmonton on February 21, 2012. Workshop presenters will offer valuable insight into this growing market which will enable attendees to: evaluate how they might profit by developing free from food products identify the types of products needed to fill the gaps in free from diets determine the unique needs of those following these special diets assemble resources required to develop free from foods create a marketing strategy for free from foods understand the new Canadian food allergens and gluten source labeling regulations which come into force on August 4, 2012 In addition to experiencing hands-on what it is like to have to follow a special diet, participants will be able to sample a variety of allergen and gluten free snacks from what is currently available in the marketplace. The cost of the workshop is $30. Seating is almost at capacity. Call toll-free 1-800-387-6030 to register. For further information, contact Anderwald at 780-644-2404. Contact: Annette Anderwald 780-644-2404 Still Time to Register for Banff Pork Seminar 2012 The Banff Pork Seminar (BPS) is one of the best pork industry networking and education opportunities of the year and there s still time to register for the 2012 seminar. The seminar always brings together people from so many different backgrounds across North America, including all agricultural regions of Canada, says BPS program director, Dr. Ron Ball. Sharing experiences with those people is one of the major benefits of attending. This year is no exception. We ll have about 200 delegates from outside Western Canada, including internationally. All will have plenty to discuss when they hear the top speakers we have lined up. There are several late registration options, says conference manager, Ruth Ball. Online registration can be handled until closing Friday, January 13. Walk-ins are accepted during the seminar. And there is a one day rate of $180 plus GST for anyone who can only attend one day of the seminar. Registration information is available at the Banff Pork Seminar website at www.banffpork.ca Contact: Ruth Ball 780-492-3651 Website: www.banffpork.ca Media note: for news releases and photos from the 2012 Banff Pork Seminar, please visit the Banff Pork Seminar Special Meeting Report link at www.banffpork.ca
January 16, 2012 page 4 The Days are Getting Longer! The information in this article is for Edmonton proper, but the patterns are similar for the entire province. From Edmonton, summer day lengths get shorter the further south one is, and winter day lengths are longer on any given day. Moving northward, the trend is reversed, with summer day length longer and winter days shorter. 12:00 AM Estimated Sunset and Sunise Times for Edmonton 5.0 10:00 PM 4.0 Time (hr:min) 8:00 PM 6:00 PM 4:00 PM 2:00 PM 12:00 PM 10:00 AM 8:00 AM days get shorter days get longer Sunset Sunrise Rate of day length change 3.0 2.0 1.0 0.0-1.0-2.0-3.0 Daily day length change (min) 6:00 AM -4.0 4:00 AM -5.0 Date Interesting facts: after December 22 (winter solstice) evening light lasts longer, but the morning sunrise stays about the same it s not until about January 4 that mornings start getting earlier. January 1 net day light gain is approximately 1 minute 11 seconds per day February 1 net day light gain is approximately 3 minutes 39 seconds per day March 1 net day light gain is approximately 4 minutes 13 seconds per day During the 36 days from about March 1 to about April 5, the maximum rate of day light change occurs, ranging from 4 minutes 13 seconds to 4 minutes 16 seconds per day, with the greatest change occurring on the spring equinox which is approximately March 20. After this day length still increases, but by a lesser amount each day until the summer solstice (approximately June 20). After this, the days once again start getting shorter. Contact: Ralph Wright 780-427-3556
January 16, 2012 page 5 Changes to the Barley and Wheat Marketing System Information Sessions The Marketing Freedom for Grain Farmers Act takes effect on August 1, 2012. This means barley and wheat producers will have a choice between selling their grain on the open market or through the Canadian Wheat Board. To help Alberta barley and wheat producers make a smooth transition, the Government of Alberta is hosting an information session in several areas of the province. The session will help producers understand what this change means to them, including: Canada s position in the world markets pricing in the new system delivery and grading transportation and logistics research and development Meeting schedule: Westlock January 17 Camrose January 18 Lloydminster January 24 Lethbridge January 31 Grande Prairie January 31 Medicine Hat February 1 Peace River February 1 Three Hills February 2 Vegreville February 6 All meetings are from 9:00 a.m. to 3:40 p.m. Lunch will be provided. Pre-register at least three days prior to the event by calling the Ag-Info Center at 1-800-387-6030. Contact: Joel Bokenfohr 780-427-4329
January 16, 2012 page 6 Agri-News Briefs Irrigated Crop Production Update - 2012 The Irrigated Crop Production Update 2012 conference is January 31 to February 1, 2012 in Lethbridge. Early registration is $85 per person for the two-day meeting which will feature 27 speakers on a range of irrigation topics. After January 18, registration increases to $100 per person. Conference agenda and registration details are available by visiting the coming events section on the Alberta Agriculture s website www.agriculture.alberta.ca For more information contact: Shelley Woods at 403-381-5439, Rob Dunn at 403-381-5904 or Ross McKenzie 403-381-5842. Watershed Stewardship Grants Since 2005, the Watershed Stewardship Grant Program has provided funding to the province s stewardship community to support their efforts. Alberta s grassroots watershed stewardship groups are making a difference. Through this program, grants of up to $7,500 are awarded to watershed stewardship groups working in their communities to raise awareness of local watershed issues or improve the condition of their local watershed. The cumulative benefits demonstrated by grant recipients have made this program a success. To learn more about the grant program, program resources, how to apply or to find out about past grant recipients, contact the Watershed Stewardship Grant Coordinator toll-free at 1 877-727 5276 or grant@landstewardship.org Bedding Plants Production and Marketing Workshop For anyone in the bedding plant industry, or thinking of starting a business, this workshop, being held in Edmonton on February 15, 2012, is an event that should be attended. The agenda includes: Basics of bedding plants business from seeds to sales Mohyuddin Mirza, greenhouse specialist Production costs and profit margins Emmanuel Laate, senior crop economist with Alberta Agriculture and Rural Development Selecting growing media, water and fertilizer management Thom Rypien with Agrium Direct Solutions Federal and Provincial programs you should know about Belinda Choban, business development officer with Alberta Agriculture Bedding Plants insects - Knowing and managing them Kwesi, Ampong-Nyarko:, research scientist, greenhouse and special crops, with Alberta Agriculture s Crop Diversification Centre North Diagnosing bedding plant problems and making decisions Mohyuddin Mirza As well, a Q/A session will be held, and is open to all industry questions from participants. Seating is limited to 40, so early registration is recommended. Registration fee is $63 for Alberta Greenhouse Growers Association (AGGA) members, and $105 for non-members. For further information or to register, call 780-489-1991 or visit the AGGA website at www.agga.ca AgChoices 2012 AgChoices is a one-day conference designed to connect the agriculture industry with people, ideas and information on changing markets and consumer demands that strengthen, add value or help adapt their agricultural farm business. This year the conference theme is Understanding Global Influences: Keeping Alberta Competitive. On the agenda this year is a series of concurrent sessions at the afternoon forum called the Ag Info Market. The conference is being held in Red Deer on February 7, 2012. Registration is $95 per person or $75 per person for two or more from same family or farm business. A student rate of $45 per person is also available. For further information or to register, phone toll-free 1-800-387-6030 or visit the conference website at www.agriculture.alberta.ca/agchoices