After taking a dip last year, producer car numbers are on track to rebound in 2008-09.
As of April 18, week 38 of the crop year, a total of 8,262 cars had been ordered, according to statistics from the Canadian Grain Commission.
That’s almost 11 percent ahead of last year, when 7,451 cars were ordered during the same period.
Barry Dakiw, producer car officer for the CGC, said there are 11,700 orders on file for 2008-09.
If all those orders are filled, that would represent an increase of about nine percent from the 2007-08 total of 10,729.
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Dakiw said the increase in shipments this year represents a return to the levels of two and three years ago and reflects increased grain supplies.
“It’s a bounce back from last year,” said Dakiw.
Production of wheat and durum, which account for most producer car shipments, was just 20 million tonnes in 2007, compared with 27 million in 2006 and 29 million in 2008.
Producer cars are primarily shipped off short-line railways, so if a particular area has a poor crop it can have a big effect on the total numbers.
Last year, for example, there was a short crop in southwestern Saskatchewan, home to Great Western Railway, which contributed to the lower numbers.
Dakiw added that forecasts at the beginning of this year suggested producer car numbers would be higher, so the increase is no surprise.
The grain commission is trying to allocate as many cars as possible for movement in the next couple of weeks, before the imposition of road bans and the beginning of seeding.
“Movement always drops off at the start of May and stays slow throughout the month,” said Dakiw.
Rob Lobdell, president of West Central Road and Rail, said his company has shipped 20 to 25 percent more producer cars this year from its loading facility at Eston, Sask.
The company has had to deal with a number of quality issues including ergot and frost damage, but movement has generally been good.
He said WCRR’s new “virtual blending” program, which provides producers with guaranteed grade and protein contracts and pays out 90 percent of the value of the grain within days of shipment, helped attract business this year.
A later-than-usual opening at Thunder Bay created some congestion and slowed down shipments of durum, which is a major commodity for WCRR, but that situation has eased.
“Now it’s open for shipping and we expect good movement from now on,” said Lobdell.
Based on an average of 85 tonnes per car, the 11,700 orders scheduled for 2008-09 would represent just less than one million tonnes of grain.
The deadline for submitting applications for the current crop year is June 15.
That’s designed to give the commission and the Canadian Wheat Board enough time to allocate the cars before the end of the crop year July 31.
Applications received after the deadline will not be processed and will be returned with the $20 application fee.
Dakiw urged producers who want to ship a car this crop year to submit their applications as early as possible.
Applications for the 2009-10 crop year can be submitted starting Aug. 4.
