Russia Expands Imports of Canadian Beef and Livestock
Russia will now accept Canadian boneless beef from animals over 30 months of age. Federal Agriculture Minister Gerry Ritz announced the agreement in Moscow Tuesday (October 13) after a meeting with Russian Deputy Prime Minister Victor Zubkov.
The move, one of several agriculture-related deals announced Tuesday, builds on an earlier agreement for Russia to import Canadian bone-in-beef from animals under 30 months of age. Canada and Russia also agreed to have technical officials work within this calendar year to move toward giving Russian importers access to Canadian beef offal.
The Canada Beef Export Federation (CBEF) estimates the value of under 30-month beef and over 30-month boneless beef will be worth up to $32 million. CBEF also estimates fully reopening the Russian market to Canadian offal will be worth up to $10 million.
Beef isn’t the only product that will see improved market access. Russia is also expanding its sheep and goat production and opening market access for high-quality Canadian small ruminant breeding stock. The Canadian Sheep Federation estimates the Russian market will be worth up to $8 million over three years.
Meanwhile, the Canadian industry participated in the Moscow Golden Autumn Agricultural Fair and finalized key agreements with Russian industry to provide high-quality beef breeding stock and technical training. Hawkeye Land & Livestock Ltd. of Canada signed a deal to ship up to 10,000 head of pure-bred beef breeding stock to the Russian-owned Northern Agro Industrial Company.
Another Canadian company, Alta Exports International, signed another agreement with Inter-Regional Beef Breeding Cattle Development Fund, to support the establishment of a beef-breeding training centre to make sure Russian buyers can maximize production from Canadian breeding stock.
Canada Turns Up Heat on COOL
The Canadian government is taking the next step in the fight against U.S. Mandatory Country of Origin Labelling. Ottawa has requested a World Trade Organization panel to help resolve the dispute over the controversial law that has become well known by its acronym, “COOL”.
“The U.S. COOL requirements are so onerous that they affect the ability of our cattle and hog exporters to compete fairly in the U.S. market,” said International Trade Minister Stockwell Day, in a news release.
“Canadian farmers and ranchers produce top-quality food, and they are facing unfair discrimination because of COOL legislation,” said Agriculture Minister Gerry Ritz.
COOL is a mandatory labelling measure in the United States that requires firms to track and notify customers of the country of origin of meat and other agricultural products at each major stage of production, including at the retail level.
The federal government and Canada’s livestock producers claim the provisions impose unfair and unnecessary costs on integrated North American supply chains, reducing competitiveness in both Canada and the U.S.
The result, according to the release, is confusion and uncertainty for livestock industries on both sides of the border.
Canada’s request for a panel comes after two rounds of WTO consultations with the U.S. failed to resolve the issue. Panels are the next step in the WTO’s dispute settlement process.
Suncor Doubling Sarnia Ethanol Capacity; Move Could Fuel Other Biofuel Production
Suncor Energy has announced it is resuming the expansion of its St. Clair Ethanol Plant near Sarnia, Ontario.
The $120 million construction project, expected to be completed in late 2010 or early 2011, will double the plant’s current ethanol production capacity from 200 to 400 million litres per year.
According to the company’s news release, the project will benefit the Sarnia-Lambton area through the creation of 350 jobs during construction and 15 new jobs to operate the expanded plant, as well as supporting demand for feedstock — approximately 40 million bushels of corn annually — from local farmers.
How Soybean Production Might Benefit
The expansion may also lead to the production of other biofuels. With an eye toward developing a value-added market, the Ontario Soybean Growers (now part of the new Grain Farmers of Ontario organization), AGRIS Co-operative and Suncor Energy have been studying the potential for a facility that could process specialty soybeans.
Dale Petrie, general manager of the Soybean Growers, envisions a bio-refinery, capable of producing a variety of plant-based oils for industrial uses. The diverse list of potential applications includes making compostable plastic bags and parts for car interiors.
While the idea of such a plant may be several years away from reality (if at all), a value-chain for high oleic soybean oil is emerging.
I wrote about this potential new market (before the announced expansion in Sarnia) in the October issue of Top Crop Manager magazine.
It all starts with new soybean varieties that have been developed to produce oil that is high in oleic content.
This feature has attracted the attention of food companies because high levels of oleic acid increase the stability of the oil when used in frying and food processing applications while reducing or eliminating transfats in food products.
This high stability would also be of interest to industrial users, perhaps seeking ways of replacing petroleum-based oils with renewable alternatives.
The key to the market for farmers, according to Petrie, is being able to connect it with Canada’s highly respected Identity Preserved (IP) system.
“The big difference is that most IP markets that farmers are accustomed to are the food-grade types, which are non-genetically modified,” explains Petrie.
“Farmers can grow these new varieties under a glyphosate-resistant system. There’s a certain percentage of farmers who like the weed control of glyphosate-tolerant crops, but they also want to add some value to the crop.”
And Petrie says value could be derived from segregating the high oleic soybean oil.
“You don’t want to dilute your high oleic oil and hurt the process with oil from traditional soybeans. If a manufacturer is set up to use the new high oleic oil, the process has to be continuous.”
Producing high oleic soybean oil alone would be too expensive. That’s where the ethanol plant expansion comes into play. Petrie says the corn processing would help offset the cost of crushing the soybeans.
He adds the soybean facility would need to be flexible so it could produce other specialty oils in the future.
For more on the story, see the October Top Crop Manager
Other links: Suncor’s News Release
Kudzu Found In Southern Ontario
Kudzu envelops the Mississippi landscape
Nothing grabs headlines like a good scare or fear of the unknown. With that in mind, several major news outlets have jumped on the recent Kudzu discovery near Leamington, Ontario.
Kudzu, an invasive weed, is often referred to as “the vine that ate the south” because of its notorious rapid growth rate, up to 30 centimetres per day.
Ontario soybean farmers have been aware of Kudzu for another reason. The weed is the winter host in the southern U.S. for Asian Soybean Rust, an aggressive plant disease.
Does Kudzu’s appearance in Ontario increase the risk to Soybean Rust?
“Probably not at this time,” writes Ontario Ministry of Agriculture Plant Pathologist Albert Tenuta in the latest Crop Pest Newsletter. He says the rust fungus requires a living host to survive. Kudzu, however, is sensitive to sub-freezing temperatures and it will lose its leaves.
Samples from the Leamington discovery have been collected and are being tested for soybean rust infection.
For more, check out the Crop Pest newsletter (September 21).
Also, last year, Tenuta and several members of Ontario’s soybean industry had the opportunity to see soybean rust first-hand during a training session at the University of Florida’s Quincy Research Station.
See the related article in Top Crop Manager magazine.
Study Shows Supply Management No Simple Solution For Ontario Hog Sector
A recent study prepared by The University of Guelph, Ridgetown Campus, finds that implementing a supply management system for Ontario’s hog industry would be a challenge.
Commissioned by Ontario Pork, the study suggests that the Ontario industry would need to shrink anywhere from 43 – 58% and overcome significant hurdles including international trade issues and development of a tariff system; reduction in production to meet domestic consumption; production allocation among provinces and whether a quota system would be used to set production volumes.
Supply management attempts to match domestic production with estimated domestic consumption. It would also have to be national in scope and have the support of all provinces with a stake in it.
Author of the study, College Professor and Research Co-ordinator, Ken McEwan says “the movement to a supply management system would involve considerable downsizing of the existing Canadian swine herd. The implications of this downsizing to industry business partners would be far-reaching and in some cases could mean closure.”
“This topic has been brought up several times over the years,” said Chair Wilma Jeffray. “With pork producers looking for alternatives and options in this depressed market, Ontario Pork felt it was time to investigate the supply management concept and its feasibility. From the numbers presented I think there is clear evidence that Ontario’s hog sector would be severely impacted by adopting this system.”
The study can be found on the Ontario Pork website at ontariopork.on.ca
Colombia Opens Border To Canadian Beef
Colombia is opening its market to Canadian beef again, becoming the first South American country to restore access since the border closed due to BSE in 2003.
The Colombian government has announced that it will allow imports of Canadian beef from animals of all ages. The move follows an agreement in May that paved the way for Colombia to lift its restrictions. (See earlier post)
According to a statement from International Trade Minister Stockwell Day, Canadian exports will resume once valid certificates are agreed to with the Colombian government. In addition, the Government of Canada will continue to work with Colombia to ensure resumption in trade in cattle.
The Canadian Cattlemen’s Association said (in May) the agreement is initially worth $6 million in beef and $1 million in livestock and genetics.
Canada and Colombia recently signed a free trade agreement (FTA). Once implemented, the FTA will provide duty-free access for a wide range of Canadian goods and services.
Farm Tours Entertain & Educate
Getting a preview of the "Great Pumpkin" at the Uher farm
The weather was picture-perfect on Sunday, September 13 for the 12th Annual Round the County Agriculture Tour, hosted by the Kent Federation of Agriculture.
Four farms in the south-central portion of Chatham-Kent opened their gates to give visitors a closer look at today’s agriculture industry.
With people showing more interest in how their food is produced, these tours - held throughout the province every September and October - have become an effective way of explaining agriculture from the farmer’s perspective.
From my perspective as a farm writer/broadcaster, I’m always intrigued by the amount of change that occurs at the farm level.
The Buis Beef Ranch is a prime example. Mike Buis and his family have made significant changes to the farm, located just a few kilometres south of the 401.
Over the years the feedlot operation, which fed western calves, has been transformed into a cow-calf operation that finishes its own calves. Moreover, the farm has recently opened a retail store and sells “Buis Beef” to the public.
Mike Buis
“We’ve always sold halves and quarters but now we’re selling individual packages,” says Buis, referring to the freezer beef that is sold on site. “All packages are stamped with the animal ID number, so it’s completely traceable back to the cow where the beef came from.”
To be able to raise its own calves, the Buis farm transformed a good chunk of land into pasture. While fencing off valuable row crop acres may have raised some eyebrows among the neighbours, Buis says the move makes sense for several reasons.
“I still think to be sustainable in agriculture, you need the balance between the livestock and the other crops,” says Buis.
In addition to growing seed corn, the farm also grows vegetables like sweet corn and green beans. He says the crop combination is a good complement for the beef operation.
“With sweet corn, just the ear is used, so we put the cows out there and they can winter on it. This provides a fair bit of feed, and then, of course, you can grow a lot of feed with cover crops. The other nice thing about cover crops is you cycle your nitrogen. The cover crops use the nitrogen and hold it. The cows graze on it and drop the manure in the field to be ready for the next crop.”
While saving a bundle on the fertilizer bill, costs involved with bringing in feed and hauling out manure are also reduced.
Other Tour Highlights:
Uher’s Peformance Feeds – Blenheim, Ontario
In addition to the feed business, Steve and Alice Uher run a mixed farm where they raise market lambs and grow several fruit and vegetable crops. A highlight is the environmental improvements the family has made to the farm over the years. Their efforts include planting hundreds of trees and establishing grassed waterways and buffer strips. Visitors were able to see the improvements by taking one of the groomed walking trails around the farm.
Gladstone’s Sweet Potatoes – Blenheim
The Gladstone farm grows, packs and ships sweet potatoes year round. Visitors could tour the cure and storage barns as well as see some of the equipment that is involved with growing and harvesting the unique commodity. Samples of sweet potato pie were offered by members of the Chatham-Kent 4-H Tater Tots, the first 4-H potato club in Ontario.
Smith & Wilson Wines – Blenheim/Cedar Springs
The farm, which has been in the Smith family for three generations, has a spectacular view of the vineyards and Lake Erie. Having grown fruits and vegetables in the past, the farm now grows wine. After opening the winery in 2005, Smith & Wilson has recently extended its reach into the hospitality sector by hosting weddings and other special events.
Grain Farmers Launch New Brand
New logo as it appears on GFO web site
The new organization representing Ontario’s corn, soybean and wheat farmers has unveiled its brand identity. The logo for the Grain Farmers of Ontario was inspired by an aerial photo of the patchwork quilt effect of Ontario’s fields of the three major crops.
The GFO says the logo signifies the crop rotation, land stewardship, agronomics and innovation that are the basis of sustainability for Ontario’s grain and oilseed farm businesses. The circular shape of the GFO brand signifies the inclusivity and strength of the new organization, which combines the interests of Ontario’s corn, soybean and wheat farmers.
The launch of the logo was marked by a gathering of Delegates and Committee Members from its three founding groups – the Ontario Corn Producers’ Association, Ontario Soybean Growers, and the Ontario Wheat Producers’ Marketing Board.
“Today is a celebration of both strength and cooperation”, stated GFO Chief Executive Officer Barry Senft. “Grain Farmers of Ontario is proud of its three founding groups’ strong history of achievements. From those strengths, we are building an organization that will be both relevant – in light of the scale and complexity of today’s global commerce environment – and responsive to the grass roots farmers we represent.”
The group also has a new website – gfo.ca - that will be fully operational on September 15.
GFO represents 28,000 farmers. The three crops generate over $2.5 billion in farm gate receipts. The spin-off is estimated at over $9 billion in economic output and over 40,000 jobs in the province.
Driving Home Local Food
The promotion of Ontario and local food products is hitting the road in a big way with the ‘There’s No Taste Like Home’ Mobile Educational Trailer.
The trailer, outfitted with a fully equipped kitchen, will be used to promote “buy local” through cooking demonstrations and tasting opportunities at industry, community and school events across the province.
The Ontario Cattle Feeders’ Association (OCFA) developed and operates the trailer with support from the provincial government’s Ontario Market Investment program.
“We are working with organizations across Ontario to make sure that the buy local, buy Ontario message hits home in every part of this province, and this trailer is helping to drive that message home,” said Leona Dombrowsky, Ontario Minister of Agriculture, Food and Rural Affairs. The Minister kicked off the celebration of the trailer at a ceremony at the Ministry’s office in Guelph on August 27.
Jim Clark, OCFA executive director, says the trailer is a great way to promote and identify the foods that are grown close to home, including Ontario Corn Fed Beef, the association’s branded program.
”People need to try your product, and if they like what they’re eating, then they are going to look for your product,” says Clark.
He says the trailer also makes economic sense, noting costs to rent space and equipment for major food events can cost as much as $35,000 for one event. The new unit also features state-of-the-art equipment for food preparation and handling.
“The oven will generate a HACCP report, which we will give to the health units, so they know exactly what we have cooked, the time we cooked it and the temperature that the food was cooked it at,” adds Clark.
The project received $60,000 in support from the Ontario Market Investment program. The four-year program is part of Ontario’s enhanced investment in ‘buy local’ initiatives and has invested more than $3 million in 63 projects to date.
Minister Dombrowsky remarked that the number reflects the growing interest that is being shown in promoting Ontario’s food products.
“There are many people out there who recognize why it is so important, worthwhile and necessary to educate people in our communities about the wonderful food that we grow right here in Ontario. Not just to tell them we have it here, but to have them understand why they should prefer it and how they should be using it when they do their grocery shopping.”
To book the “There’ No Taste Like Home” Mobile Educational Trailer, contact the Ontario Cattle Feeders’ Association.
- Guelph MPP Liz Sandals (centre-left) and Ontario Agriculture Minister Leona Dombrowsky (centre-right) help members of the Ontario Cattle Feeders’ Association Board of Directors launch the ‘No Taste Like Home’ Mobile Educational Trailer
Feds Announce Support for Hog Industry
Gerry Ritz, Minister of Agriculture and Agri-Food Canada
The federal government has announced plans aimed at making Canada’s hog industry “lean and competitive”.
“Some operations simply aren’t viable any more and we are going to help them transition out of the industry and reduce production. Some operations need access to credit to weather the current economic storm and we are providing government-backed loans to help them restructure,” says Ritz.
“Farmers want to make their living in the marketplace and we’re investing in marketing to find new customers for Canadian pork and make our pork industry successful for the long term.”
The Canadian Pork Council, the national organization that represents pork producers, applauded the plan, noting that the three programs aim to provide immediate help.
“The impact of the world pandemic caused by the H1N1 virus has delayed the prospects for price recovery in hog markets. This is the latest blow to an industry that has faced serious challenges over the past few years, including high feed costs,high exchange rates and US public policies,” says Jurgen Preugschas, Chair of the Pork Council.
“The industry has responded through dramatic restructuring and a commitment to a Strategic Transition Plan. Today, the government is lending a hand.”
International Pork Marketing Fund
An International Pork Marketing Fund will provide $17 million to Canada Pork International to bolster market development and activities to capture greater value from export markets, and to help address the pork exports losses resulting from trade restrictions.
The objective is to recover markets lost due to the H1N1 virus, reposition for sales of higher valued products, to build markets and gain recognition for Canadian pork products, to increase market access for Canadian pork products, and to enhance export capacity in response to industry-identified needs.
Long-Term Loans
Long-term loans will be provided by lending organizations. The Government of Canada will share the loan loss risk. Lending organizations will be required to ensure that the borrower had a credible business plan demonstrating potential to maintain a viable agricultural operation that will allow for repayment.
The loans would be first used to reimburse any outstanding Advance Payments Program (APP) emergency advances under the 2008 stay of default, if the borrower holds such an advance. Additional funds could be used to address liquidity issues or make the investments required to achieve long-term profitability.
Overall program parameters and details will be negotiated with stakeholders and lending organizations.
Hog Farm Transition Program
The Hog Farm Transition Program will provide up to $75 million to help producers who wish to transition out of the industry. Hog producers who agree to keep their barns out of production for a period of at least 3 years would be invited to bid for a place in the Hog Industry Transition Program.
In exchange for a contract to keep barns empty and ensure that it was not used in any way in hog production for a period of 3 years, the producer would accept a negotiated amount, based on the annual productive capacity of the barn. Bids would include a timeline for disposing of current herds.
Administrators will accept bids based on cost impact and an orderly flow of animals to market.
