World Grain - July 2010 - 26

COUNTRYFOCUS

GFO has looked further afield, capitalizing, for example, on a market for
identity-preserved soybeans, especially
in Japan. It's not just about non-GM. "We
are getting more toward stacked traits,"
he said. "We obviously grow those, and
we found some good niche markets."
Ever tougher competition in bulk markets means that Ontario has to compete
on its quality. "We have an oversupply
usually, but it's getting difficult to send
it on to bulk export markets," he said.
"There's more Russian competition. We
have generally been able to compete on
quality. The Russians are getting better."
GFO is lobbying for a risk management plan for farmers which would
help them deal with volatile markets,
although it would have to comply with
international trade obligations.
TOO LITTLE ETHANOL PRODUCTION
According to the International Grains
Council (IGC), there are currently 15 operating ethanol plants in Canada with a
combined capacity of around 1.4 billion
liters, including 1 billion using corn and
400 million using wheat. "This would
not be sufficient to comply with proposed
federal regulations, due to come into
force in September 2010, that require 5%
bioethanol content in gasoline, equivalent to about 2 billion liters," the IGC
said in its Grain Market Report in May.
"However, new maize-based plants and
expansions are set to increase capacity to
around this level by the end of 2011."
The IGC also pointed out that a 2%
requirement for renewable fuel in diesel
is not going to be enforced until the feasibility of using biodiesel in Canada's
cold winters has been demonstrated.
The IGC predicts use of grain for ethanol in 2010-11 at 2.7 million tonnes, including 2.1 million tonnes of maize and
600,000 tonnes of wheat.
STATE-OF-THE-ART MILLS
According to the Canadian National
Millers Association, Canada has 55 commercial wheat and oat mills in eight of its
13 provinces and territories from Pacific
to Atlantic, using state-of-the-art milling

technology. It puts capital investment in
Canadian grain milling facilities at about
$1.5 billion, with 20% of Canadian mills
being less than 15 years old.
The majority of wheat milling capacity is close to the population centers of
the east, while the majority of the oat
milling capacity is close to the Prairie
Provinces.

According to the association, the industry processes around 3.1 million tonnes of
wheat a year, producing about 2.4 million
tonnes of flour and other milled products
for human consumption. The IGC expects
Canada to export 250,000 tonnes of wheat
flour in 2009-10.
The North American Free Trade
Agreement gives Canada's millers ac-

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