Grainswest - Winter 2019

Winter 2019 Grains West 36 Photo:Courtesyof theGovernmentofCanada within six years. Japanese markups on wheat will be reduced by 45 to 50 per cent. For food barley, Canada will share access with other CPTPP countries for exports starting at 25,000 tonnes, which will grow to 65,000 tonnes within eight years. The Department of International Trade and Investment said markups applied to the price of food barley by Japan will also be reduced by 45 per cent within eight years. As well, since the United States withdrew from the CPTPP negotiations, it won’t be part of the implemented agreement. Having preferential access to the high-value Japanese market over our southern neighbours should put even more money in the pockets of Canadian grain farmers. “We should be at a competitive advantage over the United States,” said Backman, noting as well that with Canada’s bulk grain handling system, wheat from Alberta specifically stands to win. “With the bulk handling system, Alberta exports tend to get drawn out through western ports, so this trade deal stands to provide a great benefit to Alberta.” AWC now values exports to countries within the CPTPP zone at more than $1.5 billion for wheat, and this is expected to grow. According to Alberta Barley figures, barley exports may increase by 400,000 to 500,000 tonnes annually, which would represent an additional $100 million in value. Alberta’s Ministry of Economic Development and Trade stated that the top-ranked provincial export product to Japan in 2016 was canola seed valued at $403 million. Wheat exports to Japan rang in at $189.3 million and malt at $82.3 million. AWC and Alberta Barley have stated that by Canada moving ahead with ratification of the CPTPP, the path is paved for Canadian farmers to see an increase in export volumes as early as spring of this year. “Canadian wheat is highly dependent on our global export markets,” said Kevin Bender, AWC chair and Sylvan Lake-area farmer. “The CPTPP not only levels the playing field with our major competitors but also provides opportunity for better returns for farmers.” As for new market opportunities for barley farmers, there will be increased Canadian demand for feed, because Canadian beef exports are one of the largest projected export gains expected to be derived from the agreement. Jason Lenz is the former Alberta Barley chair and farms near Bentley in central Alberta. He also anticipates increased barley revenue opportunities in the hog sector, given that pork has been targeted as a large Canadian export opportunity within Asian markets. “Any kind of increase in demand, it’s more mouths for us to feed,” he said. FEATURE PrimeMinister Justin Trudeau meets with Japanese PrimeMinister Shinzo Abe at the June 2018, G7 summit in Charlevoix, QC.