August 6, 2004

China Major Buyer Of Canadian Wheat
 

Exports of western Canadian wheat, durum and barley are expected to increase by as much as 2.5 million tonnes this crop year. This is one of many signs that farmers have rebounded from three years of drought, the Canadian Wheat Board said Thursday.

President Adrian Measner credited China with much of the board's rosy forecast for the 2004-05 crop year, noting the country emerged as the board's largest foreign buyer last year.

China bought 1.8 million tonnes of wheat during the last six months of the year, helping the board meet its target of 16 million tonnes of bulk exports.

"We see this as a long-term event, not just a one-shot deal here," Measner said.

"We would see them in the marketplace for the next 5 to 10 years in the order of 5 to 10 million tonnes a year."

China has had to increase its wheat imports because of a sharp drop in domestic production, as industrial and residential developments encroach onto farmland.

Measner said Canada stands to get a good percentage of that business because China has increased its demand for high-grade spring wheat in recent years.