World Grain - July 2014 - 24

COUNTRY FOCUS

tonnes, down from 6.5 million the year
before. It projects Canada's 2014-15 durum exports at 4.6 million, up from 4.4
million in 2013-14.
Canada is also an important oilseeds
producer. IGC estimates its 2013-14
crop at 5.2 million tonnes, up from
5.1 million the year before, with exports at an unchanged 200,000 tonnes.
The IGC puts Canada's 2013-14 rapeseed (canola) production at 18 million
tonnes, up from 13.9 million tonnes,
with exports at 8.5 million tonnes, up
from 6.7 million.
GRAIN LOGISTICS PROBLEMS
Recent months have seen a struggle
for the Canadian industry to get grains
moved, particularly to export ports. The
government's response is the Fair Rail
for Grain Farmers Act. It includes a provision requiring rail companies to move
1 million tonnes of grain every week
through to Aug. 3, 2014.
"At 76 million tonnes, this year's
Western Canadian crop is 50% higher
than the 10-year average," the Canadian
government said as part of a statement
announcing the act's passage into law on
May 30. "This volume is putting significant pressure on Western Canada's grain
handling and transportation system. As
the government continues to work with
farmers to invest in research and innovation, higher yields will continue to be
the new reality across Canada."
MARKETING FREEDOM
For many years Canada operated a
single desk system for exporting grains,
but that system was abolished a few
years ago.
"Marketing freedom came into force
on Aug. 1, 2012, as a result of Bill C-18,
the Marketing Freedom for Grain Farmers Act, and gives Western Canadian
grain producers the freedom to market their wheat and barley to the buyer
of their choice," as the Farm ministry,
Agriculture and Agri-Food Canada explains on its website.
"Western agribusinesses have seen a
positive impact from being able to mar24

ket their wheat and barley independent
of the former Canadian Wheat Board. A
study conducted by the Canadian Federation of Independent Business found
that the vast majority of agribusinesses
(81%) were positively impacted by
marketing freedom. More than threequarters said they had greater control of
the decision-making for their products
and two-thirds said marketing freedom
has delivered better market signals, better access to competitive prices and increased cash flow."
200 YEARS OF MILLING
The Canadian National Millers Association (CNMA) points out on its website that commercial grain mills have
operated in Canada for over 200 years.
"Canada is a young country, founded
as a federation of provinces in 1867,"
the association explains. "Flour mills
were operating in Canada more than 100
years earlier.
"The grandfather of all Canadian milling wheats was introduced to Canada in
1851. Some of Canada's largest modern
grain mills are operating at or near locations where mills have operated for
more than 100 years."
Canada has approximately 55 commercial wheat and oat mills situated
from Pacific to Atlantic coasts, CNMA
said. "Commercial scale wheat and oat
mills operate in 8 of Canada's 13 provinces and territories," it said. "Total
milling capacity is shared about equally
between eastern and western Canada.
The majority of wheat milling capacity is in the east in close proximity to
larger urban centers. The majority of oat
milling capacity is situated in the Prairie
provinces."
Canadian mills grind over 3.5 million
tonnes of wheat, oats and barley each
year.
"Canadian mills export wheat flour,
semolina and other milled grain products to over 30 countries," CNMA said.
"Canadian milling companies have free
trade access to all of Canada, the United
States and Mexico under the terms of the
North American Free Trade Agreement.

Although the United States is Canada's
largest export market for milled grain
products, over 30 countries import
wheat flour and other milled grain products from Canada each year.
Canadian mills use state-of-the-art
milling methods and technology.
"Capital investment in Canadian grain
milling facilities is approximately $1.5
billion. Twenty percent of Canada's
grain mills are less than 15 years old,"
the association said.
MILLERS' CONCERNS
Gordon Harrison, president of the Canadian National Millers' Association,
explained to World Grain the issues that
face the industry, stressing that the association works with other industry bodies, in Canada and across North America, to get its point across.
"Like the milling association in the
U.S., we are dealing on both sides of the
border with new food safety legislation
and regulation," he said. "In Canada we
have something that was passed about a
year ago called the Safe Food for Canadians act. It is really food inspection
legislation."
Work into turning the act into workable rules is ongoing. "The inspectors
are worried about the management of
contaminants in grains, specifically mycotoxins," he said. "Mycotoxins are an
issue that is important to millers globally and in the E.U. in particular."
He pointed out that grains and grainderived foods are very low risk. "They
typically carry no microbial organisms
that are a particular health risk."
Harrison is also concerned to keep the
regulatory environment in Canada and
the U.S. reasonably aligned. "We have
been in the North American Free Trade
Agreement with an open border since
the early 1990s, so we have 20 years of
free trade experience," he said. "It has
worked and we have unfettered bilateral
trade in milled grain products and further processed grain-based foods such
as pasta.
"It is vitally important that we try
to keep our regulatory environments
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World Grain - July 2014

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