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There’s another worldwide security issue Alberta can help solve: food In addition to the humanitarian crisis in Ukraine, two other issues have been elevated to the global agenda: food security and energy security.
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ussia’s invasion of Ukraine has put the global food supply at risk. Together, the two countries account for 25 per cent of the world’s wheat exports and are relied on as a stable source of food by countries around the world. Current grain exports from Ukraine remain stranded, as ports are either closed or too damaged for use.
But, like the energy sector, there isn’t a switch that can be flipped to increase crop production in short order. For one, our seeding and harvesting cycles are such that it’s difficult to make rapid changes to what crops are planned for a growing season – and we live in a climate where year-round growing just isn’t possible.
Canada is in a unique position to supply the world exactly what it needs. Just as Canada can help alleviate the global energy supply challenges, the same holds true for food supply. Canada accounts for 12 per cent of global wheat production, exporting to 70 countries, and is the world’s largest producer of pulse crops. Alberta’s agriculture sector makes up 18 per cent of Canada’s total exports, with wheat, canola and beef as the top three exports.
The impact of higher energy costs, natural gas and diesel, are also being visited upon farmers, as they face fertilizer prices that are up as much as 200 per cent along with a global diesel shortage, which is also pushing up costs of operation. Farm fuel prices are up 30 per cent for the 12 months ended January 31 – and that’s before the price impact of the oil supply. That’s on top of already razor-thin margins.
JUNE 2022 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
