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Canadian Wheat Board moves into new era

Aug. 1, 2012, Winnipeg, MB - CWB launched itself into the new grain-marketing era with a new corporate visual identity, a new grain-handling partner, and a strong foundation for its competitive business model, which begins with the new crop year beginning today.

"We begin the new era in a position of strength and a climate of optimism," president and CEO Ian White during a news conference in the lobby of CWB head office in downtown Winnipeg. "We have a brand new look, a solid business model and the support of thousands of farmers who have told us they intend to market grain with CWB. That makes the future bright."

White unveiled a new image and logo for CWB, featuring vibrant colours that reflect the green of nature, the blue of the Prairie sky and the gold of the harvest, along with the rays of a rising sun.

He also announced today that an important grain-handling agreement has been reached with Louis Dreyfus Canada Ltd. to handle grain from farmers who want to market their grain through CWB pools. "With this new agreement, CWB remains well on track to serve farmers into the future as their expert grain-marketing partner," said White. "Our network of partner delivery points will continue to grow, ensuring farmers can sign CWB contracts with confidence."

Louis Dreyfus, one of the world's largest grain companies, has 10 modern, high-throughput terminals across Western Canada. The announcement means there are now more than 130 confirmed locations across Western Canada where farmers can deliver grain to CWB.

Farmers have provided strong indications that they intend to commit a large volume of grain to CWB, White said. Grain prices are strong, which has created excellent pricing opportunities for producers and for CWB pools, which are capturing value from the current market rally. Spring wheat is now trading at almost $10 a bushel.

"There are many reasons for confidence as we forge ahead anew," he said. "We will add value for farmers. We have a clean balance sheet thanks to the support of the Government of Canada. We have streamlined our operations. We have negotiated business arrangements that will help us succeed. The path we've taken goes in one direction - forward."

CWB crop and grain-market experts also provided outlooks today on the prospects for this year's Prairie harvest. Production in 2011 will be significantly larger than the past three years. The CWB Market Research team projects all-wheat production in Western Canada of 24.2 million tonnes (MT), compared to 22.7 MT last year and 21.1 MT in 2010. Durum is expected to be 4.5 MT, up from last year's 4.2 MT, while barley is forecast at 8 MT, up from 7.3 in 2011.

For the 2011-12 crop year that ends today, CWB expects to return an estimated $6.3 billion to western Canadian farmers from the sale of last year's wheat and barley crop. CWB exported about 18.1 MT, including 13 MT of wheat, 3.6 MT of durum, and 1.1 MT of barley. Within Canada, CWB sold 2.15 MT of wheat, 225 000 T of durum, and 1 MT of malting barley over the past crop year, which runs from August 1 to July 31.

2012 crop production projections (CWB Market Research)

*All projections are in million tonnes

Wheat (ex durum)
2012: 19.96
2011: 18.6
2010: 18.16
2009: 18.8

Durum
2012: 4.46
2011: 4.2
2010: 3.02
2009: 5.5

Barley
2012: 8.04
2011: 7.3
2010: 6.98
2009: 8.9

2011-12 crop year-end figures (estimates)

Net revenue to farmers: $6.3 billion.

Exports: 18.1 million tonnes (MT): 13 MT wheat, 3.6 MT durum, 1.1 MT barley (745 000 T malting barley, 390 000 T feed barley)

Domestic program: 2.15 MT wheat, 225 000 T durum, 1 MT malting barley

Top-volume customers:
Wheat: Canada (2.15 MT); Mexico (1.1 MT); Japan (1 MT); Iraq (1 MT); Colombia (853 000 T)
Durum: Algeria (716 000 T); USA (506 000 T); Italy (500 000 T); Morocco (414 000 T); Venezuela (347 000 T)
Malting barley: Canada (1 MT); China (362 000 T); USA (194 000 T); Mexico (21 000 T); South Africa (57 000 T)
Feed barley: Japan (236 000 T); Saudi Arabia (118 000 T); USA (36 000 T)

2011 all-wheat production: 22.7 MT, compared to 21 MT in 2010 and 22.5 MT on average (five-year).
2011 all-barley production: 7.3 MT, compared to 7 MT in 2010 and 9 MT on average (five-year).
2011 crop quality: Canada Western Red Spring wheat - 75% was in the top two grades, compared to normal average of 65% (38% in 2010). Durum - 68 % was in the top two grades, compared to normal average of 57% (21% in 2010).

August 1, 2012  By Canadian Wheat Board