Revenues up 18 percent | Western Canadian farmers receive fourth largest payout in history
Canadian Wheat Board revenues surpassed $6 billion last year, despite lower export volumes and a poor quality crop across much of Western Canada.
According to the CWB’s 2010-11 annual report released last week, overall revenues rose about 18 percent to $6.07 billion in the fiscal year ending July 31, 2011, up from $5.15 billion in 2009-10.
Western Canadian farmers received $5.5 billion for their grain deliveries, the report added, the fourth highest payout in the board’s history.
“This occurred despite the fact that the 2010-11 harvest produced one of the smallest and lowest grade crops on record,” CWB president Ian White said in the report.
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“Record rainfall left millions of unseeded acres, delayed crop development and damaged harvest quality, directly impacting farmer incomes.”
White described 2010-11 as a year beset by poor growing conditions, low yields, poor crop quality and significant rail transportation problems.
Total wheat production was estimated at 21 million tonnes, down from 24.6 million tonnes the previous year.
Only 38 percent of the Canada Western Red Spring wheat crop was graded No. 1 or No. 2.
The CWRS wheat class is by far Western Canada’s largest, accounting for 75 percent of the wheat acres sown each year.
In a normal year, 68 percent of CWRS production falls within the top two grades.
Durum quality was also poor with only 21 percent of CWAD production meeting the top two grades.
Poor production and below average quality had a noticeable impact on grain exports.
Total exports of wheat, durum and barley were estimated at 15.8 million tonnes, the lowest volume in six years.
Domestic sales amounted to roughly 3.2 million tonnes, including 2.7 million tonnes of wheat, 290,000 tonnes of durum and 211,000 tonnes of malting barley.
White said one of the CWB’s biggest challenges involved moving prairie grain to port.
“Sourcing, segregating and transporting grain were extremely complex due to factors including Canadian Pacific Railway performance problems, bad weather that hampered farm deliveries and limited supplies of high quality grain,” White wrote.
“However, at the end of the day, there were some significant successes from the CWB’s role in the wheat supply chain.”
