November 26, 2010

Livestock prices up, crops drop in Canada's Alberta

According to Statistics Canada data released Wednesday (Nov 24), farm cash receipts in Alberta dropped more than US$500 million during the first nine months of the year.

The 7.1% on-year drop to US$6.809 billion was greater than the Canadian decline of 3.2% to US$32.5 billion.

"A plunge in the price and marketing of crops in the province was behind the dip," said Bernie Rosien, StatsCan's unit head for farm cash receipts.

In Alberta, those were down 20% over the first three quarters whereas livestock prices were up 5.6% ­­ better than the Canada-wide number. Programme payments also rose 1.6%. Declines were reported in all provinces except Newfoundland and Labrador and Nova Scotia.

In Manitoba and Saskatchewan, the decrease in cash receipts was less than in Alberta because Rosien said that while prices also dropped, those provinces sold more. The numbers would not capture this year's late harvest, for the most part, which should enjoy some higher prices, he added.

Canada-wide, the market receipts, which include revenue from the sale of crops and livestock but exclude programme payments, came in at US$30.2 billion, a drop of 2.9% from the first nine months of 2009.

Crop receipts were off 8.8% to US$16.1 billion as a result of lower prices for major grains and oilseeds. Meanwhile, livestock receipts rose 4.7% to US$14.2 billion as a result of increases in domestic slaughter and international export receipts for hogs and cattle.

"Despite recent price increases for some grains and oilseeds, prices have declined since peaking in 2008 as world supplies were replenished," the federal agency said.