Grain farmers hoping to upgrade their 2004 dross into 2005 gold through blending are taking a big chance.
If it’s not done right, it risks not only individual farmers’ income, but also the reputation of Canada’s grain export pipeline, say industry officials.
“Producers need to proceed with extreme caution,” said Norm Woodbeck, manager of quality assurance standards for the Canadian Grain Commission.
Farmers, market analysts, grain merchants and administrators say thousands of farmers are hoping to boost the value of their unsold 2004 stock by mixing it with what they anticipate will be some high quality 2005 product.
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But experts say blending is complex, especially given the mixed bag of quality issues that affected last year’s crop.
A farmer planning to blend must be aware of all the degrading factors in the low quality sample and all of the acceptable tolerances for the higher grade.
If they don’t know exactly what they’re doing, the results could be disastrous.
“You can take a small amount of poor quality and mix it into a load of good quality and ruin the quality of all of it, depending on the specific factors,” said Woodbeck.
It’s not as simple as layering a load of No. 3 CWRS with a load of No. 1 CWRS and assuming it will come out at No. 2, he said, noting “sometimes No. 1 plus No. 3 equals No. 3.”
A big part of the problem is that last year’s low grades resulted from a variety of factors, including frost, mildew, green immature seed, sprouting and fusarium.
“You have to know each one and how they fit into the specifications and standards. It’s a very complicated process.”
Grain marketers and merchants share the commission’s concerns about improper blending.
“If they can add value to their own crop, then good for them,” said Ward Weisensel, chief operating officer for operations for the Canadian Wheat Board.
“But they really have to use due diligence when they’re doing it so as not to put the overall quality of the crop at risk.”
Improperly blended grain could create serious issues for the board as to tries to gather grain with matching specifications to meet the customers’ demands.
A big issue for the CWB is that the early crop is invariably the highest quality, and the last thing the marketing agency wants to see is that premium grain sullied by lower quality additions.
“We will have to be diligent watching the quality early in the new year,” said Weisensel.
Brian Hayward, chief executive officer of Agriculture United, said he gets a little nervous when he hears about farmers hoping to blend up last year’s feed and No. 3.
“That’s a risky thing to do, that you don’t do it right, that you take the good stuff and knock it back down to a feed grade,” he said.
Rob Meijer, director of public affairs for Cargill Canada, also urged farmers to be careful, saying it’s crucial to protect the integrity of the quality pipeline from farm to customer.
“Every time you do a blend there is liability involved,” he said. “You may or may not meet what the customer ultimately wants, and we don’t want anything to happen to affect our international reputation.”
Woodbeck said farmers intent on blending would be well advised to talk to grain companies. While there will be a cost, the companies have the specialized equipment, expertise and experience to do it right.
