The Canaryseed Association of Canada is one step closer to implementing a refundable checkoff in time for the new crop year.
Just over three-quarters of producers who voted on the subject at Crop Production Week gave their approval to establishing a levy, with 66 in favour and 21 opposed to the idea.
If the association gets a similar response at its Feb. 10 annual meeting in Eston, Sask., it will ask the Saskatchewan Agri-Food Council to implement a checkoff of $1.75 per tonne of canaryseed marketed effective Aug. 1.
Association president Ken Schikowski said there is no magic approval ratio needed from the Eston meeting to go ahead with a refundable levy that would affect an estimated 1,200 Saskatchewan canaryseed growers. Instead, the board of directors will rely on common sense.
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“I don’t think you would want to proceed unless you would get at least two-thirds of the growers approving the checkoff,” he said.
Once implemented, the $1.75 levy should generate annual revenues of $250,000-$300,000, which is the amount researchers at the University of Saskatchewan’s Crop Development Centre feel is required to properly explore alternative uses of the crop.
Canaryseed is sold exclusively as a birdseed ingredient and Saskatchewan is able to saturate the world market with its current production.
“We need to look into other markets and the logical one would be to look at something in the human food chain,” said Schikowski.
Breeders feel there is potential to produce a hairless variety that could be used as a sesame seed substitute, which could substantially broaden demand for the crop.
Some growers attending the meeting raised concerns with the proposal. One wondered if research funded by the checkoff would draw more acres into production and rid the industry of its occasional but alluring price spikes.
Another wanted to know what kind of returns growers could expect from producing a sesame seed alternative and when a variety would be made available to exploit that market.
A grower asked if the board of directors considered including processors in the checkoff.
Schikowski said he couldn’t deny that increased production may dampen price prospects but the point of the levy is to expand demand in order to minimize low points in the price cycle, which is what is happening now with prices around 11 cents per pound, well below average levels.
He said there were no projected returns or timelines for growers to consider because those questions will be answered through research from checkoff funds.
Schikowski said the board briefly considered including processors but quickly determined it would be a waste of time.
“One could argue that you charge the processors but my suspicion is you can guess where it would come from anyway.”
Schikowski wasn’t the only speaker grilled by the inquisitive collection of 110 growers spilling out of a small meeting room.
Saskatchewan agriculture minister Mark Wartman was asked if the government would commit to matching producer funding. He said the province is more inclined to fund projects where there is producer commitment, adding that the government never doles out general funding for producer groups.
