Transcript Presentation by: Michael Bakker, MSc. to The Ontario Bean

Ontario Soybean Growers
“To develop and promote a sound industry
business environment that will allow Ontario
soybean producers the opportunity for viable
and profitable ongoing returns”
Oh Canada !
Arable Land in Canada
Canadian Crop Production
millions of acres
Specialty
Crops, 6.8
Grain Corn, Hay, 17.1
2.8
Soybean,
2.9
Rye, 0.6
Wheat, 25
Flaxseed,
2.1
Oats, 4.6
Canola, 13.6
Barley, 11
~87 million
Canada’s Soybean Industry
• Fertile growing region
– Great Lakes and St. Lawrence Valley Region
• Represents over 90% of Canada’s total soybean production
• Diversified soybean production
– Wide variety of climate conditions
• Breeding programs
– Listen to the needs and wants of customers
• Develop and produce varieties that meet marketplace needs
Production Zones
Ontario’s Soybean Industry
• Over 25,000 growers
~ 2.3 million acres (78% of National)
• Over 300 country elevators/dealers
• Currently 6 oilseed processing or
crushing plants in Ontario
– Bunge and ADM are the largest in Ontario
Ontario’s Soybean Industry
• Economic Impact
– Value of soybean meal and soybean oil
produced in Ontario: $635,000,000
• Ontario growers excel in producing,
harvesting, storing, and shipping soybeans
in a segregated manner
Diversity of
Farm Cash Receipts
$9.1 Billion 2002
Dairy Products,
17%
Other, 10%
Tobacco , 3%
Poultry and
Eggs, 10%
Floriculture and
Nursery, 11%
Grains and
Oilseeds, 16%
Fruit and
Vegetables,
11%
Ontario’s Contribution
INDICATOR
Ontario GDP from food, beverages and
tobacco as % of Canada’s GDP from same
Ontario agriculture as % of Canada’s GDP
from agriculture
Agri-food Trade (billion $CDN)
Imports
Exports
Employment in agri-food as % of Ontario’s
total employment
* all data for 2002
46%
27.5%
$12.32
$8.40
11%
Agri-Food Impact on GDP
GDP from Goods-Producing Industries, Ontario 2002
Other Primary
Industries
Construction
Utilities (excluding
communications)
16.1%
7.9%
3.4%
Food, Beverage &
Tobacco Manufacturing
7.8%
Agricultural
2.6%
Electrical and
Electronic Products
Other Manufacturing
Industries
6.6%
Transportation
Equipment
15.6%
Primary Metal and
Fabricated Metal
Products
10.3%
Chemical and
Chemical Products
6.6%
23.3%
“To develop and promote a sound
industry business environment that
will allow Ontario soybean producers
the opportunity for viable and
profitable ongoing returns”
Soybean Production
• Planting – May
• Harvest - late September, October
• Typical provincial harvest average of
37-40 bu/acre
OSG Priorities
• Market Development
– Soyfoods
– Industrial Uses – Biodiesel, inks etc.
– New export market development
• Research initiatives
– High oil soybeans
– Pest management
• Industry and government relations
• Value-added opportunities at the farm-gate
level
OSG Initiatives
• Research and technology
– Approximately $500,000 has been spent annually
on collaborative research projects
• Soybean plant breeding
• Agronomy
• Marketing
– Research funding has grown to include areas such
as domestic uses for soybeans
• Partnerships with Soy 20/20 and Soyfoods
Canada
OSG Initiatives (con’t)
• Market development alliances
–
–
–
–
–
–
–
Crushers (ADM, Bunge)
Canadian Soybean Export Association
Renewable Fuels Canada, NBB (US)
Soyfoods Canada
Soy 20/20
Canadian International Grains Institute (CIGI)
Guelph Food Technology Centre (GFTC)
Millions of Consumers within a Days Drive
Ontario and the Eastern U.S. Market
135 million consumers within 500 miles
Source: Ontario Ministry of Finance and OIS
Ontario’s Safety Net Programs
• Prior to 2003
– Each province negotiated different programs with the
federal government, to meet the needs of farmers.
– Ontario had:
• Market Revenue Insurance
• Net Income Stabilization Assistance
• Crop Insurance
• After 2003 Federal Policy changed for two
national safety net programs:
– CAIS – whole farm stabilization
– Production Insurance – Crop Insurance
Current Safety Net Issues - CAIS
• A single solution such as CAIS does not adequately solve
income risks for farmers across the country for a number
of reasons:
– Location and types of markets
– Agronomic Risks
– Difference in Crop produced
• To address differences in agronomic and production risks,
Ontario is proposing the Risk Management Program.
– Works with CAIS and production insurance to address long-term
declining margins for Grains and Oilseeds
Risk Management Program
Harvest Begins
G & O Support ($9.00/bu)
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Ave. Spot Price (6
mos. after harvest)
Ave. Forward
Contract (6 mos.
prior to harvest)
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Canadian Trade Position
• Key message from Canadian Trade Negotiators is
to “level the playing field” for all agriculture
commodities.
• Canada currently promotes a balanced trade
position for export commodities (Grains and
Oilseeds), supply managed commodities (Dairy
and Chicken) and single desk marketing systems
(Canadian Wheat Board)
• Canada position at the WTO is to develop and
implement clear, enforceable trade rules applying
equally to all countries.
Bio-Diesel in Canada
• Currently there is very minimal biodiesel
production in Canada – approx 4 million litres
• Two major plants have just been built:
– Biox in Hamilton – Waste products and vegetable oil
– Rothsay in Montreal – Waste products
• OSG Position on Biodiesel in Ontario is:
– "As part of the development of a sound business environment for
soybean producers in the province of Ontario, OSG promotes the
biodiesel industry and any policies that encourage the use of
domestic feedstock."
Thank You