World Grain - June 2014 - 34

FEATURE: CANADA IN THE SPOTLIGHT

Next year's event
With a sold out event that exceeded expectations, the Canadian Grains Council
couldn't have been more pleased with the inaugural Canadian Global Crops Symposium held April 14-16 in Winnipeg, Manitoba, Canada.
"The conference far exceeded our expectations in several ways," said Richard Phillips,
president of the Canada Grains Council, which organized the event. "First, we were sold
out and had to turn people away who wanted to register in the last week. Secondly, we
were able to attract a very high caliber of political as well as domestic and international
industry leaders. We received rave reviews from the people attending on the quality of
the speakers and the opportunities for networking."
The event, attended by grain merchants, farmers, government officials and representatives from grain trade associations, attracted nearly 250 delegates from six countries.
He said event organizers are considering adding a trade show to next year's event
and possibly adding courses at the Canadian International Grains Institute in Winnipeg.
"We are investigating the possibility of a trade show that could possibly have each
of the Canadian commodity councils highlighting samples and attributes of the various
Canadian grains to provide a 'hands on' feel and to answer technical, processing and
nutritional questions," Phillips said.
The symposium will once again be held in the spring.
Limited, agreed with Page's assessment. "I think we're seeing new standards in what's normal in terms of cropping capabilities in Western Canada,"
said Vossen while participating on a
Canadian Exporter Leader Panel. "I
think it's the new normal as opposed a
45 to 50-million-tonne crop. So how do
we rise to this new challenge in which
we have an opportunity bestowed on us
to bring in another $10 billion of foreign
exchange? We have to invest in new
capacity and even redundant capacity.
We have to get away from the rhetoric
and hostility and work together to find
solutions."
Cargill Canada CEO Jeff Vassart said
the system capacity needs to be built not
just for steady growth in crop production but also to be able to handle dramatic upward swings such as that which
occurred last fall.
"To only use a long-term trend to predict what the size of our production and
what our crops will be going forward,
I'm not sure that positions ourselves to
be successful in the future," he said.
'A GOOD PLACE TO DO BUSINESS'
Unlike the vast majority of countries, Canada exports more grain and
oilseeds than it consumes domestically.
34

Page noted that as much as 50 million
of the 75 million tonnes harvested last
fall is projected for export markets.
Canada produces only 2.5% of the
world's grain but accounts for 13% of
global trade, he noted.
The country's "just in time" grain
handling and transportation system,
which includes far more on-farm storage (about 90% of total storage) than
most countries, is complex and cannot
succeed without collaboration from all
the stakholders.
However, Page noted that "when that
system works, it creates the most efficient logistics system in the world."
Page said despite this year's logistical
problems, Cargill views Canada as a
great long-term investment.
He said the company, which employs
8,400 people at 100 locations throughout
the country, has added about $1 billion
in the last decade to its asset footprint in
Canada and intends to continue to invest
in grain handling, canola crush and refining and agricultural products production.
For example, Cargill is building a
canola processing facility near Camrose,
Alberta, scheduled to open later this
year, that will have annual crushing capacity of 850,000 tonnes.
"Overall, Canada is a good place to

do business and has been for a long
time," Page said. "A significant portion of Cargill's future growth will have
Canadian connections. There is a low
political risk here, especially in comparison to the United States. Many of our
global customers operate here, and it's
our opportunity to serve them. We are
pleased with the move to a free market
grain system in wheat and the federal
government's support for free trade."
He also pointed to the country's remarkably diverse set of crops - it produces significant amounts of wheat,
barley, canola, corn, flax and soybeans
- as well as its ability to produce grains
and oilseeds with very little reliance on
irrigation as reasons that Cargill has increased its footprint in Canada.
"The percentage of cultivated acres
irrigated in Canada is low relative to almost any place on earth," Page said. "It's
about 1.3 million acres, or less than 2%,
while it's nearly 8% in the U.S. Canada's
reputation as a rain-fed reliable supplier
is becoming increasingly important."
Finally, Page noted that Canadian
farmers receive high rankings for embracing technology and reacting to the
strong market signals they receive.
He predicted that Asia, and particularly China, would continue to be a significant export market for Canadians, which
is why the continued development of the
west coast ports is critical.
"Canada must continue to capitalize
on its export pedigree," he said. "It has
a huge opportunity to help supply the
burgeoning demand in Asia. The recent
relaxation in China of some of its selfsufficiency standards should be of great
encouragement to everybody in this room
about the opportunities that lie ahead."
All of Canada's major grain companies have announced plans to expand
port facilities on the west coast. Cargill
is spending $45 million for an expansion
at the Port of Vancouver and Richardson
International and Viterra also have projects under way.
RABOBANK'S PERSPECTIVE
Bill Cordingley, managing director,
June 2014 / World Grain / www.World-Grain.com

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