April 29, 2004

Canada Expects To Dislodge US As Main Wheat Supplier
 

The Canadian trade office is foreseeing Canada's capability in overtaking the United States as the biggest supplier of wheat in the Philippines. It claims that Canada's hard spring wheat used in the popular bread "pandesal" is of excellent quality.

Butch D. dela Cruz, trade commissioner at the Canadian Embassy's Department of Foreign Affairs and International Trade, told reporters that Canadian wheat could have already surpassed the supply of US wheat in the Philippines.

"In hard spring wheat, we are probably very close (to the US supply) or equal it, if not bigger. We would certainly be happy to be number one in hard spring wheat. But it's an agricultural crop, and crops are affected by the forces of nature," he said.

Canada is defending charges from US reports that Canadian hard spring wheat is inferior to the US wheat. Dela Cruz said it was inaccurate to say that even if Canadian wheat's price could be lower. A trader said Canadian wheat could price $6 per metric ton (MT) lower than US wheat, whose price hovered at $200 to $210 per MT.

According to dela Cruz, the local millers would know if the wheat is of poor quality or not. Price of wheat - whether Canada or US, changes cyclically. The fluctuation could depend on the timing of the booking of shipment. It was definitely a free market. He further added that the low of price of Canadian wheat was more attributable to the good crop this year.

"Definitely, the current crop is better than 2002-2003, which was hit by a drought. The 2003-2004 crop was very good. There was a recovery and prices tend to soften. Given that weather pattern will remain the same, we'll expect a good crop next year," he said.

Erico H. Bailon, president of Paritas Trading Corp. (PTC) said that the Philippines' wheat import - reaching to two to 2.5 million MT yearly might be supplied on an equal volume by US and Canada. He elaborated that the two suppliers' hard spring wheat did not have any difference because of the similarity in farm location.

"The US supplies about one million tons. Maybe they have a share of one million each. The flour needed for pandesal requires very high protein and high gluten, which can only be seen in the same area shared by Canada and US. You can expect the same quality given the same weather and climate," Bailon said.