THURSDAY, FEBRUARY 1, 2018
VOL. 96 | NO. 5 | $4.25
SHATTERPROOF CANOLA | P3
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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Grain handlers pressured Drop in pulse markets hurts profit margins CANADA
BY SEAN PRATT SASKATOON NEWSROOM
JAPAN
VIETNAM
MEXICO
A big deal for Canadian agriculture
BRUNEI SINGAPORE
THE TPP, PART TWO
MALAYSIA
AUSTRALIA
In February 2016, Canada, the United States and 10 Pacific Rim countries agreed to the Trans-Pacific Partnership, a free trade deal that would effectively replace the North American Free Trade Agreement. The U.S. withdrew from the deal shortly after Donald Trump was elected president. The remaining countries have now negotiated a new deal, without the United States. SEE PAGE 4 FOR THE DETAILS.
PERU
CHILE
NEW ZEALAND
POTENTIAL IMPACT OF THE TRANS-PACIFIC PARTNERSHIP FOR CANADIAN AGRICULTURE, BY SECTOR:
Grain companies are struggling to keep product flowing through their facilities and that is hurting the bottom line, says an oilseed trader. “Everybody is just getting killed now,” said Glen Pownall, managing director of Peter Cremer Canada. “The margin structure is just getting hammered because there’s just so much excess capacity in the system without peas going out the door anymore.” India’s punitive import duties on peas and lentils have slowed movement of the two pulse crops. Producer deliveries of peas for bulk shipment through week 25 of the 2017-18 crop year was 1.47 million tonnes, down 41 percent from last year. Lentil deliveries were 615,000 tonnes, down 56 percent. “It’s a pretty ugly situation for everybody out there I think for 2018. Everybody is feeling not too good these days,” said Pownall. Farmers are also holding off on selling their canola, forcing grain companies to aggressively pursue the crop to use idle rail cars and terminals. SEE GRAIN HANDLERS, PAGE 4
PORK Canadian pork exports to CPTPP nations were valued at $1.4 billion in 2016. Major pork exporters, like Chile and the EU, already have free trade deals with Japan.
• Tariff cuts for Japan and Vietnam, over five years, could increase annual exports by $780 MILLION.
• The TPP-11 could boost annual Canadian pork exports to Japan by $300 MILLION.
DAIRY TPP-11 countries will receive access to 3.25% of Canada’s dairy market. That’s equivalent to Saskatchewan’s annual milk production. • That’s worth about $246 MILLION.
BEEF Japan imported $115 million of Canadian beef in 2016. Tariffs on Canadian beef are now 38.5%. Under TPP-11, tariffs would immediately drop to 27%, then slowly decline to 9%. • Canadian beef sales to Japan could increase annually by $200 MILLION.
WHEAT Japan imported nearly $1.4 billion of wheat in 2016 with 45% coming from the U.S. and 34% from Canada. Under TPP-11, tariffs on Canadian and Australian wheat will eventually drop by $65 a tonne. • If Japan buys 10 percent more wheat it could boost Canadian exports by $140 MILLION.
Source: Dairy Farmers of Canada, Canola Council of Canada, Canadian Cattlemen’s Association, Canadian Meat Council, Agriculture Canada and the U.S. Wheat Associates | MICHELLE HOULDEN GRAPHIC
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u|xhHEEJBy00001pzYv!: FEBRUARY 1, 2018 Return undeliverable Canadian addresses to: Box 2500, Stn. Main, Saskatoon, SK. S7K 2C4 The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publisher: Shaun Jessome Publications Mail Agreement No. 40069240 | ISSN 0043-4094
CANOLA In 2015 Canada exported $1.2 billion of canola seed to Japan but only $9.7 million in canola oil. Japan has a 16% tariff on Canadian canola oil, compared to 10% for Australia.
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