CANMORE, Alta. Ñ Canadian Wheat Board sales representatives need all the skills they can muster to sell this year’s poor wheat crop into a world full of low quality wheat, said the head of Canada’s grain marketing agency.
“It’s a challenge in this environment because there’s so much lower quality wheat in that international market,” said Canadian Wheat Board president Adrian Measner.
“The low quality crop does present unique and interesting marketing challenges,” Measner told the joint convention of the Western Barley Growers Association and the Western Canadian Wheat Growers Association.
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The past crop year was one of the largest world wheat crops on record. Global wheat production was 620 million tonnes, compared to the five-year average of 574 million tonnes.
Little of that grain is trading at premium prices, said Measner.
“Fifty percent of world market is trading at very, very depressed levels.”
A strong Canadian dollar, high ocean freight rates and shortage of quality grain also depressed prices.
The wheat board has focused its efforts on maintaining its premium markets with the United Kingdom and Japan.
They’ve also tried to educate other customers on how to use lower grades than they previously bought by showing them the milling and brewing characteristics of those grades.
“For the most part that has been successful,” said Measner.
While there was little discussion from convention goers about Measner’s marketing presentation, the two associations later voted to continue lobbying the government for a voluntary wheat board, which would compete with private companies on the open market.
Randy Hoback, chair of the wheat growers, said few farmers at the convention had a chance to examine the board’s latest pricing option program, designed to allow farmers to take a daily cash price based on U.S. elevator prices, but he called it a step in the right direction.
“It gives us another tool in our toolbox to maximize more profits and allows us to get outside the pooling account and actually take on the marketing of our own grain based off these prices.”
During his presentation, Measner said the board is also encouraging buyers to switch to a lower quality durum.
As well, he said malting barley was a bright marketing spot.
“There’s a very solid demand from the Chinese market.”
However, feed barley markets continue to be depressed because of the large stocks of coarse grain, especially American corn.
“We’re not likely to see a lot of barley move to market,” he said.
