December 12, 2003

Canada To Send 500,000 MT Wheat To China In 2004

The Chinese government and the Canadian Wheat Board on Thursday signed a memorandum of understanding that calls for the sale of 500,000 metric tons of Canadian wheat to China during calendar year 2004, according to a release from the Canadian Wheat Board (CWB).

The agreement was signed in Ottawa by an official from the China National Cereals, Oil and Foodstuffs Import and Export Corporation, or Cofco, and CWB President and CEO Adrian Measner. The signing coincided with an official visit by Chinese Premier Wen Jiabao to Canada's capital.

"China is a significant market for the high-quality wheat produced by western Canadian farmers," said Measner. "We are pleased to be able to meet China's needs and to continue our long-standing and important relationship with Cofco."

The agreement calls for the wheat sale to be negotiated under normal commercial practices and at market values. The agreement was valued at about C$100 million.

Canadian Grain Commission figures for the crop year that began Aug. 1 and ends July 31 show that at the end of October, only 50,500 tons of Canadian wheat had been shipped to China.

During the 2002-03 (August-July) crop year, the figures show, Canada shipped only 153,900 tons of wheat to China. During the 2001-02 season, that amount totaled 767,100 tons, the figures show.

Source: Canadian Wheat Board