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Russian wheat export ban good for Canada

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Published: September 2, 2010

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The Russian government did Canadian farmers a big favour when it cut off its wheat exports to the world, say Japanese grain buyers.

During a visit to the Canadian International Grains Institute in Winnipeg, Yukio Mitutome, managing director of the Japanese Flour Millers Association, said Russia’s export ban has made Canada’s reliable, high quality supply of grain seem more valuable than ever.

“We wish that you would treat our market as part of your domestic market so that you don’t do something like Russia is doing right now,” said Mitutome, speaking through a translator.

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“Simply because they have a domestic shortage they are stopping all exports. But we can’t afford that. We can’t have that.”

Canada has been a steady supplier of durum to Japan for many years, feeding a growing pasta demand that has been developing in the Asian nation.

Japanese millers are allowed to import durum from other nations, but Canadian durum has a virtual lock on the market, which is a useful outlet for oversized prairie durum crops in recent years.

The Japanese are generally the highest-paying steady buyers of Canadian crops, whether it is canola, milling wheat or durum, and demand the highest quality standards.

Mitutome and 21 Japanese colleagues attended a CIGI durum program to find out more about the Canadian grain system and the source of the durum they buy. They also travelled to Swift Current, Sask., and Vancouver.

The CIGI courses are designed to reassure foreign buyers of Canadian grain that Canada’s claims of high quality are legitimate, and to help foreign buyers better understand how to use specific varieties and types of Canadian grain.

Mitsuru Murasumi of Nisshin Flour Milling Inc. said attending this program helps satisfy him that the durum he is milling and selling to customers is as good as he tells customers it is.

“When I got the privilege for this trip I was very happy because I could now learn actually where the grains are coming from and how the grain was grown and how the harvest is managed and stored and transported to us,” Murasumi said.

“By knowing these things, I am hoping I can improve my service and promote Canadian wheat more confidently.”

As top quality buyers, Japanese millers almost never buy Russian grain.

However, the tremors sent through the world’s grain markets by the Russian export ban and this summer’s price rally have still drawn attention in Japan.

“There is more interest, more concern, about the Russian situation because of their decision to suspend all exports of wheat,” Murasumi said.

“Rather than quality, my customers are more concerned about pricing.”

The world is still awash in durum and continues to have large supplies of other wheat classes, but buyers are starting to notice how quickly the world supply situation can shift.

Canadian farmers are still looking at poor prices for durum compared to other crops, but they appear to have loyal buyers in Japan who will likely continue to consume the prairie crop, especially now that pasta has become popular there.

“Pasta has firmly established itself in the Japanese consumer market and actually consumption is gradually growing, steadily growing, and that’s what I thought by coming here I could probably develop something better using already-high quality Canadian durum,” said Kenichi Fujishiro, a research and development specialist with Ma Ma-Macaroni, Japan’s dominant pasta manufacturer.

“By coming here and having a better understanding, I could get a better feel of quality and safety and the people involved in the growing of wheat and having that glimpse of knowledge makes sure that I can promote our own product of Canadian durum to our own customers.”

About the author

Ed White

Ed White

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