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2010
CWB exports at 10 -year high as 2009-10 crop year closes
New crop production forecast highlights damage from wet conditions
July 30, 2010
Winnipeg - The crop year will end tomorrow showing decade-high wheat exports and total grain exports.
CWB president and CEO Ian White said the 2009-10 crop year was notable for strong sales in an extremely competitive world market.
"We undertook a very strategic sales program that enabled us to increase our exports in an aggressively competitive international market that was saturated with grain," White said today at the CWB's annual crop year-end news conference.
The CWB exported about 18.8 million tonnes (MT) of wheat, durum and barley during the crop year, the highest volume since 1999-2000. That's up 400 000 tonnes from the previous year, and about 2.2 MT over the 10-year average. Wheat exports of 13.6 MT were also the highest in a decade. Durum exports reached 3.8 MT – the highest in three years, and a significant number given deep worldwide supplies.
CWB net revenue, returned directly to farmers, is estimated at about $4.8 billion – the third highest total in the past decade.
However, the production outlook for 2010-11 is considerably dampened by excess rains that have left 10.5 million acres unseeded, and ruined the prospects for another 2.5 million acres that did get in the ground. All-wheat production is projected at 18.45 MT, about the same as in 2007 and the lowest since 2002.
Allen Oberg, chair of the CWB's farmer-controlled board of directors, noted that unseeded acres and low production have created a dire situation for many Prairie farmers.
"Farmers are resilient, but when you cannot even get seed into the ground, it's devastating," said Oberg, who farms at Forestburg, AB.
Wheat production in Western Canada is forecast at 15.6 MT for 2010-11, down from 18.8 MT last year. Durum is expected to be 2.9 MT, down from last year's 5.5 MT. Total barley production is forecast at 7.4 MT, a reduction of 1.5 MT from 2008-09.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all revenue, less marketing costs, to farmers.
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For more information, please contact:
John Lyons
CWB media relations manager
Tel: (204) 983-3101
Cell: (204) 223-4281
john_lyons@cwb.ca
2009-10 by the numbers*:
- Preliminary estimate of net revenue returned to farmers: $4.8 billion.
- Exports: wheat (13.6 MT to 42 countries); durum (3.8 MT to 24 countries); malting barley (1.2 MT to nine countries).
- Domestic sales: wheat (2.15 MT); durum (290 000 tonnes) and malting barley (1.1 MT)
- Top volume wheat customers: Canada (2.15 MT); Iraq: (1.18 MT); Bangladesh (1 MT); Mexico (884 000 tonnes); Japan (880 000 tonnes).
- Exports by port: west coast (11.5 MT, highest in 10 years); St. Lawrence (4.5 MT); interior rail (1.9 MT); Churchill (529 000 tonnes); Thunder Bay (327 000 tonnes); Atlantic (26 000 tonnes).
- Wheat carry-out stocks: 4.4 MT.
2010-11 forecast at a glance:
- Seeding progress: Stalled at about 82 per cent, leaving 10.5 million acres unseeded across the Prairies.
- Production estimates: wheat (15.5 MT); durum (3 MT) and barley (7.4 MT).
- Projected export target:15.1 MT (lowest since 2004-05)
- Price projections (from July's Pool Return Outlook): wheat ($6.12 per bushel); durum ($5.52 per bushel); barley ($4.66 per bushel).
* All figures are preliminary estimates and subject to change
