Checkoff proceeds, grading system stalls

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Published: January 19, 2006

Barring unexpected delays, Saskatchewan canaryseed growers will begin paying a producer checkoff within the next few months.

Ken Schikowski, president of the Canaryseed Association of Canada, said the Saskatchewan government is expected to soon give final legislative approval to the refundable checkoff.

After that, a levy of $1.75 a tonne will be collected on all canaryseed sales.

Based on the province’s average production of 165,000 tonnes a year, the checkoff would generate annual revenues of $250,000 to $300,000, or one-tenth of one percent of total sales.

Funds will be used to conduct canaryseed research, develop new markets and expand human consumption.

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Most canaryseed produced in Saskatchewan is used as birdseed.

“There are a number of things (we’d like to look at),” Schikowski said when asked about research priorities.

“Perhaps (canaryseed could) go into other animal feeds because it’s a fairly high protein product and (the hairless varieties) could also go into such things as sesame seed type components … Right now I think we need to really sit down and talk to some other sources that have been doing some research and then pick some (ideas) that we think are winners.”

Schikowski said the checkoff will also improve the association’s chances of attracting additional research money from government.

“Governments right now are not receptive to the idea of putting (money) forward without some type of grower contribution so this is one way to access … more government funding.”

Producer support for the checkoff was deemed adequate last year after a majority of association members attending meetings in Saskatoon and Eston, Sask., backed the check-off plan.

Growers who attended this year’s canaryseed association meeting held during Crop Production Week in Saskatoon said they were satisfied the checkoff would help bolster sales, although some expressed concerns that expanding markets would result in more growers and lower prices.

Producers were less amenable to another suggestion that the industry adopt a formal grading system and allow canaryseed to be regulated under the Canada Grain Act.

This would make all canaryseed sales subject to grading and quality standards.

Grading criteria would be established by a committee comprising growers, exporters and processors and would be applied by the Canadian Grain Commission.

The grain commission already applies quality and grading standards to most agricultural crops grown in Canada including barley, flax, canola, wheat, pulses and sunflower seeds.

The inclusion of canaryseed would also ensure that canaryseed brokers are licensed and bonded to protect producers from potential losses.

However, growers had reservations about the plan.

In a straw poll conducted at the Jan. 11 meeting, 28 of 34 association members were opposed.

“That’s a difficult one,” Schikowski said. “The grain commission has been soliciting our opinion over the course of the last few years. We’ve asked this question at other meetings and I think we got similar feedback from growers so I’m not sure where we take it from here.”

Schikowski said growers are concerned about grading criteria and the potential for lower producer returns.

About the author

Brian Cross

Brian Cross

Saskatoon newsroom

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