Hard white wheat rebounded nicely in 2006 after a momentum-deflating 2005.
“It certainly has improved and has given everybody a better feeling about it,” said Graham Worden, senior manager of product development at the Canadian Wheat Board.
Last winter the CWB informed its business partners, FarmPure Seeds and Patterson Grain Ltd., that it wanted growers to plant 500,000 acres of the crop in 2006, or about half what was planted the previous year.
The board was disappointed with the performance of Snowbird, the dominant variety grown in Canada. It had failed under the wet conditions in 2005, resulting in a wide range of quality problems including low protein levels, poor milling characteristics and disease damage.
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But quality is not an issue in 2006, with what looks to be an outstanding crop.
Keith Bruch, vice-president of operations at Patterson, the grain company with the exclusive rights to handle and distribute the identity preserved grain, said millers should be much happier with this year’s harvest.
“Agronomically it was an exceptional crop, the colour being very good. Also the baking characteristics are very good and I think we’re seeing substantial interest in the marketplace for the product.”
He said the crop is all No. 1 or No. 2 quality.
Worden said the preliminary analysis indicates the milling quality should be as good as it was in 2003 when the crop was commercialized.
But he cautioned it is too early to know exactly what customers will think of the product as it is just now making its way to international markets.
The CWB plans to price hard white wheat at parity with red spring wheat in most markets this year, while seeking a premium in some select destinations.
But this will be the last year growers receive the $2.50 per tonne premium on eligible grades. Worden said while it is acceptable to subsidize production of a new product early in its life, 2007 will be the fifth year of commercial production for the class.
“This product has to stand on its own,” he said. “That’s the way it has to be.”
The CWB plans to continue its cautious development of the new class of wheat. Worden said despite coming off an exceptional year, the board still feels “vulnerable” with one variety comprising 90 percent of hard white wheat acreage.
To mitigate the risk of a crop failure similar to 2005, where ample production of a poor quality crop forced the board to sell hard white wheat at a discount to red wheat, the board does not plan to expand the program in 2007.
It will remain at 500,000 acres barring unforeseen circumstances.
Bruch is comfortable with what he termed a “right-sizing” of the hard white wheat program. But he remains confident there will be consistent, long-term demand for this product in premium markets that see the value in being able to create whole-wheat white breads.
“We still feel there are some inherent advantages to this product.”
He feels the board can make inroads in key markets with the good quality crop on hand.
“This year in particular represents opportunity because of the short Australian crop, which is a strong traditional white wheat supplier,” said Bruch.
Another encouraging development for the industry is a promising new variety from Secan that has received interim registration.
BW315A will be multiplied in 2007 and is expected to be commercialized in 2008. It may help eliminate some of the production risks associated with the class of wheat.
The variety had a strong agronomic performance in co-op trials. While it was a touch lower in protein content than Snowbird, it produced a better quality dough.
“It should be a good addition to the package,” said Worden.
The CWB has several other identity preserved contract programs in addition to the white wheat program. AC Navigator durum wheat in 2007 will receive a $2.50 per tonne premium on eligible grades. Acceptance levels will be driven by marketing opportunities. Guaranteed acceptance and delivery will be available as marketing opportunities arise.
Commander extra strong durum will have guaranteed acceptance and delivery on eligible grades as well as storage payments.
A numbered Canada Prairie spring red wheat variety, 5701PR, will have guaranteed acceptance and delivery of eligible grades, plus a $2.50 per tonne premium.
AC Bellatrix, AC Readymade, AC Tempest, CDC Buteo, CDC Osprey, McClintock, Norstar and Radiant red winter select wheat varieties will have guaranteed acceptance and delivery of eligible grades, a $10 per tonne premium and storage payments.
