May 29, 2007

 

CWB to export another 4 million tonnes of wheat, durum in 2006/07

 

 

The Canadian Wheat Board (CWB) plans to export at least another 4 million   tonnes of western Canadian wheat and durum before the end of the 2006/07 crop year on July 31, according to an CWB spokeswoman.

 

"Of that amount the CWB plans on moving before the end of the crop year 3.3 million tonnes consisting of wheat varieties, while 700,000 tonnes will be durum," said Maureen Fitzhenry, a media relations spokeswoman at CWB.

 

At the end of May, the CWB will have moved roughly 80 percent of its 2006/07 export programme, she said.

 

Weather problems combined with labour disputes have made for an interesting spring in terms of the ability to move grain and oilseeds to export locations in Canada, brokers said.

 

Excessive rain in British Columbia in December produced mud slides that shut down Canadian Pacific Railway's (CP) mainline to Vancouver, while debris on the tracks resulted in a temporary shutdown of rail lines owned by Canadian National Railway (CNI).

 

A strike by Canadian National Railway's 2,800 conductors and yard-service employees in February also resulted in a slowdown in the movement of grain and oilseeds for a couple of weeks before the Canadian government introduced back-to-work legislation to end the dispute.

 

An ongoing labour dispute between Canadian Pacific Railway and its 3,000 rail maintenance workers so far has not disrupted the shipment of Canadian Wheat Board grains, Fitzhenry said. However, she said the CWB would prefer not to have the potential for a disruption hanging over its head.

 

An official at a major international grain company said Canada's grain and oilseed transportation system over the past six to nine months has presented a number of challenges, none of which has improved Canada's reputation as a reliable supplier.

 

The official said that the grain companies, the Port of Vancouver and other key market participants have done a lot of work to improve transportation logistics in Canada and in turn improve the nation's reputation as a reliable grain supplier.

 

"All this work, however, has been lost because of the railways and ongoing labour disputes," the official said.

 

Foreign customers don't understand these delays, the official said. "All they see is that Canada's grain and oilseed movement has been hit by a strike which means delays in getting their purchases," said the official. "This builds up a very negative view of Canada very quickly among importing countries."

 

The official said that as long as these importing countries have options, they will look at alternatives.

 

CWB's Fitzhenry said an export programme for the northern Port of Churchill was in the development stages but no determination has yet been made in terms of amounts.