The Canadian Wheat Board is again offering an identity preserved contract for hard white spring wheat in a bid to maintain farmers’ and customers’ interest while new varieties are developed.
“We want to keep the white wheat program going until we can get a good portfolio of varieties widely adapted to different growing regions in the Prairies, with more robust quality,” said Andrea Hilderman, manager of the board’s IP programs.
“When the quality of white wheat is good, customers are quite interested in it.”
Hard white wheat is popular in the Asian noodle market for the white noodles it produces. The wheat is also used around the world for bread.
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The board is expecting around 200,000 tonnes of Canada Western hard white spring to be produced under contract in the coming year, about the same as last year, although Hilderman added there will be tough competition.
“We expect to lose some white wheat acres in Saskatchewan due to strong durum prices,” she said.
Hard white spring wheat has had a roller-coaster history since its introduction in 2003.
Farmers seeded 245,000 acres that first year, followed by 740,000 in 2004 and one million tonnes in 2005.
However, bad weather resulted in severe quality problems, a situation exacerbated by some farmers seeding the variety Snowbird in agronomically unsuitable areas.
Customers didn’t want to buy it and much of it wasn’t even called for delivery, which turned many farmers off the crop.
Plantings dropped to 220,000 acres in 2007, and are expected to remain at about that level in 2008.
The board said it still believes hard white wheat has good market potential, but improved varieties are needed.
About 99 percent of the hard white spring acreage is the variety AC Snowbird, with a sprinkling of Kanata. A new variety, AC Snowstar, is expected to be widely available in 2009.
The contract is handled through Paterson Grain. While there is no guaranteed acceptance, Hilderman said the marketing agency will likely take all the hard white wheat that is produced. It will be priced off hard red spring, with no special premium.
The hard white spring contract is one of five identity preserved contract programs (IPCP) offered by the board in 2008-09.
Two of them – AC Commander extra strong durum and hard white spring wheat – are for market development purposes.
The other three are commercial contracts – AC Navigator durum, CW extra strong and CW red winter select winter wheat.
The sign-up deadline is June 20 except for winter wheat, while delivery contracts must be signed by Oct. 31.
“Farmers who participate in these programs are helping to develop new markets and new uses for western Canadian wheat,” said Earl Geddes, the board’s vice-president of product development and marketing support.
The programs are used by the marketing agency to attract new customers, he said, or to create new market niches for emerging food products.
Two previous IPCPs, for Strongfield durum and Canada Prairie Spring red variety 5701R, have been discontinued.
Here are more details on the other four contracts.
- AC Commander – The contract provides guaranteed acceptance and delivery for eligible milling grades and storage payments. The board expects about 35,000 tonnes to be grown. The contracts are handled through Viterra.
As an extra strong variety, Commander is being marketed for its gluten strength, making it suited for blending with other varieties. Its bright yellow colour makes it popular with pasta makers. Its main drawback is high levels of cadmium, which can exceed European import standards.
- AC Navigator – The board expects about 300,000 tonnes to be grown. The contracts, handled through Viterra, provide a $2.50 a tonne premium for No. 1 and 2.
- CW extra strong – The board expects around 30,000 tonnes to be grown, with contracts handled by JRI. The contracts provide a premium of at least $15 a tonne and guaranteed acceptance for eligible grades that meet certain specifications.
The contract is in place to serve one specific customer in Italy, who uses the extra strong wheat to produce a specialty bread.
- CW red winter select – This contract covers eight varieties and provides premiums of at least $10 a tonne above non-select varieties for protein at 11 percent or higher. Acceptance is based on demand and deliveries are made through the board’s guaranteed delivery contracts. The delivery contracts may be limited to specific companies and locations. No spring sign-up is required.
