1 / 41

Lecture Topics

Blair McCann Agricultural Relations Representative Saskatoon Regional Office a few slides added by Ken R. Lecture Topics. Western Canadian Marketing Systems CWB Mandate Governance Structure Global Players in Grain Industry Global Production and Demand for Wheat, Durum, and Barley

nicola
Download Presentation

Lecture Topics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Blair McCannAgricultural Relations RepresentativeSaskatoon Regional Officea few slides added by Ken R.

  2. Lecture Topics • Western Canadian Marketing Systems • CWB Mandate • Governance • Structure • Global Players in Grain Industry • Global Production and Demand for Wheat, Durum, and Barley • Canada’s Role in Global Markets

  3. Two Grain Marketing Systems inWestern Canada • Grains marketed through the Canadian Wheat Board (CWB). • Wheat - Malting Barley • Durum - Feed Barley (for export only) • “Off Board” or “Non-Board” grains • Feed Barley (domestic) - Feed Wheat (domestic) • Canola - Oats • Rye - Flax • Pulses (peas, lentils, etc) - Other Crops

  4. Canadian Wheat Board’s Mandate We are: Western Canadian farmers’ grain marketing company. Our mandate is: To earn the best overall return for farmers from the sale of their grain.

  5. Who does the CWB represent? • Works on behalf of 75,000 western Canadian farmers 450 19,500 43,500 11,500

  6. CWB Operations • Headquarter in Winnipeg, Manitoba • Offices in Beijing, Tokyo, Vancouver • Regional offices in Saskatoon, SK; and Airdrie, AB. • 425 employees • Cost of operations: $60 million against revenue of $5 - $7 billion • all costs borne by farmers

  7. CWB’s Role in Marketing System The CanadianWheat Board Grain Company Customer 75,000 Farmers

  8. Governance of the CWB Federal Government 75,000 grain farmers elect appoints CWB Board of Directors 10 farmer-members five members President and CEO

  9. Controlled By Farmers • Operates independently of government • Democratic election of farmers as 2/3 of board • Four directors appointed for business expertise • CEO chosen by board, sits as a director

  10. About the CWB • Markets western Canadian wheat, durum and barley for domestic human consumption and export • Created in 1935 • Annual sales of 18-24 million tonnes to 70 countries: revenue of $4 to $5 billion • Does not control production, handling or processing • Does not fix prices

  11. About the CWB The CWB does not own • country elevators • port facilities • processing facilities Our mandate is to market farmers’ wheat and barley.

  12. CWB Structure Three Pillars of the CWB: • Single desk selling • Price pooling & shared access to system - same price regardless of time of year - equal delivery opportunity • Relationship with Government - CWB Act - payments - credit rating - sales on credit

  13. The CWB also provides and opportunity for farmers to contract at a fixed price, or lock in a basis relative to MGEX Hard Red Spring Wheat Other wheats are based on prices on CBOT/CME and KCBT The farmer then is not in the CWB price pool and receives the total value of the wheat within about ten days Prices are available daily after the markets close Ken R.

  14. Scope of Operations • Sales • Market development • Transportation • Payments to farmers • Financing • Farmer relations

  15. Annual CWB Sales • 12 - 14 million tonnes of milling wheat • 3.5 - 4.5 million tonnes of durum wheat • 2.5 - 3.5 million tonnes of barley • Total = 18 - 22 million tonnes of grain

  16. Global Grain Market Annual company revenue

  17. Export Routes Prince Rupert Churchill St. Lawrence Vancouver Thunder Bay

  18. CWB Exports By Corridor

  19. Growing Region Distance from Water(kms from center of growing region to port) W. Canada France 1,450 320 Russia USA Ukraine 675 650 - 1450 340 Australia Argentina 160-280 350

  20. Cost of moving grain is very high from the Prairies After the removal of the Crow Rates (Statutory Rates) Costs of country elevation plus the rail/seaway cost to Vancouver or St. Lawrence often exceed $ 50 to 75 dollars per acre per year Railways have an effective lobby!! Ken R.

  21. Concentration • Canadian Industry • Millers • Maltsters • Handling companies 4,947 elevators (1970) 1,300 elevators (1998) 950 elevators (2000) 376 elevators (2005) 284 delivery points • Transportation • 6 major North American Railways • Short lines

  22. Commercial Storage vs Exports

  23. 2008 Production Estimates Western Canada – Statistics Canada

  24. Wheat Overview

  25. CWB Wheat Sales Approximate percentage of sales 12% 15% 10% 20% 10% 13% 20%

  26. Major Wheat Producers(million tonnes) 151 RUK 101 Canada 80 125 25 29 119 72 20 109 109 113 68 China 56 49 EU - 27 76 78 69 U.S.A. 20 15 16 11 India 13 11 2008 - 684 MT 2007 - 611 MT Argentina Australia 2006 - 596 MT Source: USDA WASDE December 2008

  27. Regional Wheat Exports World Wheat Fundamentals MMT Source: USDA;CWB estimates

  28. Regional Wheat Import Demand(million tonnes) CIS & Other Europe 6.9 EU-27 5.1 5.0 7.4 7.7 7.5 18.0 12.5 11.6 35.5 30.8 33.7 3.3 3.1 3.0 Asia Middle East U.S.A. 32.5 31.6 27.7 19.4 18.1 19.3 World trade Africa 08-09 – 121.7 MT 07-08 – 112.4 MT Latin America 06-07 – 113.6 MT Source: USDA WASDE December 2008

  29. Major Wheat Customers 2007-08 Canada 2 100 000 Indonesia 1 370 000 Japan 945 000 United States 740 000 Sri Lanka 721 000 30

  30. Durum Overview

  31. Durum Wheat Producing Regions

  32. Major Durum Producers(million tonnes) 9.8 9.1 8.4 5.1 3.7 Canada 3.3 EU-27 2.3 5.0 2.0 4.5 4.2 1.5 5.5 5.0 Turkey & Syria 4.5 U.S.A. 1.9 1.8 1.8 Mexico North Africa 0.5 2008 – 38.7 MT 0.3 0.2 2007 – 33.0 MT Australia 2006 – 35.9 MT Source: IGC Grain Markets Report - November 27, 2008

  33. World Durum Situation

  34. Regional Durum Import Demand(million tonnes) 1.9 1.7 1.5 EU-27 3.1 3.0 0.7 0.6 0.7 2.7 1.8 U.S.A. 1.1 0.7 North Africa Others 1.0 0.8 0.7 2008-09 – 7.1 MT 2007-08 – 7.0 MT Latin America 2006-07 – 7.9 MT Source: CWB estimates Source: IGC Grain Markets Report - November 27, 2008

  35. Major Durum Customers, 2007-08 World durum wheat trade* (Source: IGC Market Report #379 June 26/08) Algeria801 000 Morocco623 000 United States 477 000 Canada 55% Italy301 000 2007-08, July-June Trade Year *Excludes semolina Canada 285 000 36

  36. Barley Overview

  37. Major Barley Producers(million tonnes) RUK Canada 65.2 56.9 56.2 31.4 23.2 32.2 11.0 11.4 9.6 EU - 27 13 13 12 18.9 4.6 5.2 15.7 U.S.A. 3.9 13.6 Africa & Middle East 1.3 1.1 1.6 5.9 6.1 4.2 2008 - 145 MT Argentina 4 2007 - 131 MT Australia 2006 - 137 MT Source: USDA; CWB estimates

  38. Regional Feed Barley Import Demand(million tonnes) CIS 0.6 0.3 0.4 EU-27 0.2 0.1 0.1 9.9 10.6 8.9 Middle East 1.3 1.2 1.1 Asia 1.9 1.6 1.7 0.4 0.3 0.2 Africa 2008-09 – 14.1 MT Others 2007-08 – 12.5 MT 2006-07 – 14.2 MT Source: IGC; CWB estimates

  39. Regional Malting Barley Import Demand(million tonnes) CIS 0.2 0.2 0.2 0.8 0.7 Africa & Middle East 0.4 1.8 1.8 1.8 Asia U.S.A. 0.2 0.2 0.1 0.3 0.3 0.2 1.0 1.0 0.9 2008-09 - 4.2 MT Others 2007-08 - 4.2 MT Latin America 2006-07 - 3.7 MT Source:IGC; CWB estimates

  40. Major Customers 2007-08 Canada1 100 000 World Malting Barley Trade Canada31% United States783 000 Australia 33% China 254 000 USA2% Mexico 114 000 EU10% Others 24% Colombia 87 000

  41. Questions

More Related