January 20, 2021
 

Canada now one of top buyers of US corn

Canada has become of the top buyers of US corn as Canadian cattle ranchers search for grain to feed their livestock, Bloomberg reported.

Dry conditions in Canada have reduced about 40% of west Canada's grain output in 2021, which pushed prices for barley and other crops to record highs. This resulted in a feed shortage for the country's cattle sector.

Data from the US Department of Agriculture showed Canada has commited to purchase 3.2 million tonnes of corn to plug the gap, the highest in 20 years and a significant increase compared to 457,000 tonnes imported n 2021.

Bob Lowe, president of the Canadian Cattlemen's Association, said a widespread drought has meant there are no local alternatives for feed available, and COVID-19 disruptions at Alberta's biggest beef processing plants meant farmers have to feed their livestock longer.

Canada has also recently purchased European barley as it is more affordable and of better quality compared to what is available. It has not imported large volumes of barley from the European Union since the 2015-16 season, based on trade data.

-      Bloomberg