Price, demand strong for sunflower snacks, weak for oilseed

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Published: February 24, 2011

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Strong prices will compensate for lagging confectionary sunflower yields, says a sunflower breeder and industry pioneer.

Jay Schuler of Seeds 2000 told the Manitoba Special Crops Symposium that the crop has a good future in Western Canada and North Dakota, even if it is now suffering because of disease problems.

“It really is not a price issue,” he said.

Sunflower acreage is expected to slump in Manitoba and the U.S. Red River Valley and Great Plains this year because of disease problems and increased corn acres.

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Schuler said 10 years ago farmers in his area along the North Dakota, South Dakota and Minnesota border grew corn only for silage, but new early maturing grain varieties have allowed many to grow the crop and abandon sunflowers.

Sunflower acreage has moved west, away from corn and sclerotinia.

Most U.S. sunflower acreage is in oilseed varieties, while most Canadian acreage is in confectionary varieties.

Schuler said this is a problem for U.S. acreage prospects because oilseed sunflowers compete with canola, soybeans and palm in the vegetable oil market.

Farmers also like the ease of growing large acreage crops such as corn and soybeans that are genetically modified and have increasing yields.

But confectionary sunflowers compete in the snack food market, and those prices are likely to be pulled up by competing products.

“The price of tree nuts in general has really gone through the roof,” said Schuler.

Macadamia nuts trade for $8 per pound and almonds for $2.40 per lb.

S chuler said California is producing a record almond crop, but prices have not fallen because of booming demand from China.

“The demand continues to increase for confectionary sunflowers.”

Recent wet weather has hurt sunflower acreage in Manitoba, but a return to drier weather would help acreage recover as sclerotinia problems recede, he added.

He said a return of drought-like weather would remind farmers of why sunflowers are a good prairie crop. They can survive conditions that kill other crops.

New corn varieties are also drought-tolerant and higher yielding so the crop will continue to challenge oilseed sunflower acreage, especially with oilseed sunflowers’ inability to escape the crowded vegetable oil market.

However, Schuler said the tree nut market gives confectionary sunflowers a good long-term outlook.

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Ed White

Ed White

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