BBC - The European Union acted illegally in stopping imports of genetically modified foods, the World Trade Organization has reportedly ruled.

Diplomats have leaked details of the WTO's confidential final verdict, not due for public release until late June.

According to reports, the decision is "substantially" similar to a preliminary verdict issued in February.

The case was instigated by the US, Canada and Argentina who were critical of an EU moratorium on GM food crops.

The trio of nations argued that the ban, in place from 1998 to 2004, was about protectionism rather than science.

Food debate

It is reported that in the 1,000 page ruling, the WTO also criticises Austria, Belgium, France, Germany Italy and Luxembourg for banning several genetically modified organisms (GMOs) already cleared by the European Commission.

However, the verdict is not thought to address the issue of whether GMOs are safe or if they can be compared to naturally occurring products.

Anti-GMO protesters said that this meant the report would have no impact on EU policy .

"It is clear that the US, Canada and Argentina will not be able to use this ruling to bully other countries to accept GMOs," said Eric Gall, political advisor to environmentalist group Greenpeace in Brussels.

Two years ago the moratorium was lifted and a modified strain of sweet corn, grown mainly in the US, was allowed onto the market.

But Washington continued with the WTO case because it wanted to be sure approvals for GMO sales were being decided on scientific rather than political grounds.

Biotech crops, including corn and soybeans that have been genetically modified to resist insects or disease, have been widely grown in the US for years.

GUELPH, ON - Ontario's livestock farmers applaud Prime Minister Harper's government for its financial commitment to agriculture, delivered in last week's federal budget. The Ontario Cattlemen's Association (OCA), Ontario Cattle Feeders' Association (OCFA), Ontario Pork (OP), Ontario Sheep Marketing Agency (OSMA), and the Ontario Veal Association (OVA) want to ensure that farmers are aware of and appreciate the financial contribution which the federal government has just made to Ontario's livestock farmers in the federal budget.

On Tuesday May 2nd, The Honourable Jim Flaherty, Minister of Finance, announced an additional $1 billion in "new" money for agriculture. The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food, had already initiated discussions with the provinces to overhaul the Canadian Agricultural Income Stabilization (CAIS) program.

"Prime Minister Harper and the federal government should be applauded and recognized for moving so quickly," says OCA President, Ian McKillop. "The province's beef farmers are pleased that the government is retroactively changing the inventory valuation used in the CAIS program." Curtis Royal, OCFA President also agrees that "this is exactly the kind of approach we have been asking for."

The Budget included commitments to agriculture in the following areas:

- providing more responsive income stabilization

- creating new and innovative support for farm family incomes

- enhancing disaster assistance and separating it from income stabilization; and

- investing in future opportunities in the sectors, such as: biomass science; support for a biofuels strategy; and new opportunities for agriculture through value-added products

"At a time when Stephen Harper's government has so many 'spending priorities', an investment in rural Canada is a very wise move for this new Cabinet," comments John Hemsted, Chair of OSMA.

"We look forward to working with both the federal and the provincial governments in their efforts to support and sustain integrated and vital agriculture industries. This budget is a great first step," adds Judy Dirksen, OVA Chair.

Livestock farmers have been pleasantly surprised by the government's readiness to listen and respond in such a short period of time.

"The signal that this government is sending to farmers is that it is ready to help and willing to listen," says Curtiss Littlejohn, Chair of Ontario Pork. "Ontario's 35,000 livestock farmers wish to thank Ministers Strahl and Flaherty, and indeed all of those federal and provincial members of parliament who recognize the importance of supporting agriculture."

CALGARY - On May 8 The Canadian Cattlemen's Association (CCA) applauded the Federal Government on following through on its commitment to support agriculture in the 2006 Budget. The announcement on Friday to make changes to how inventory is valued in the CAIS program is an improvement that had been requested by the CCA.

"By making these changes retroactive to 2003, it ensures that losses realized during the BSE crisis are finally recognized by the CAIS program," commented Ernie Willis, Chair of CCA's Domestic Agricultural Policy Committee.

The CCA has adopted several guiding principles for the development of income stabilization programs:

- That it be as market neutral as possible and structured to minimize influence on business decisions.

- That it not alter competitive balance within industry both regionally and between sectors.

- It must allow industry to be driven by clear market signals.

- It must be structured to minimize risk of foreign trade action.

- It must be transparent and predictable.

The CCA is also pleased to see the Government's commitment to developing a separate disaster program that could be rapidly activated in the event of an industry devastating disease, such as occurred with BSE or could occur with Foot and Mouth Disease. "De-coupling disaster from income stabilization programming would allow the disaster program to remain targeted to individual operation needs," Willis noted. "The income stabilization component could then be designed to be a general, non-targeted program, ensuring it is market neutral with little impact to the decision making practices of producers." "The changes announced last week reflect a Government willing to listen to producers and work together to make improvements to the industry."

CCA is the National Voice for the Beef Cattle Industry, representing over 90,000 Cattle Producers

BEIJING - China's Shenzhen Hualian Grains and Oils Trading Co. said on Monday it was still awaiting a permit from Beijing's quarantine authority to unload 100 tonnes of corn from the United States.

The trading house had bought 100 tonnes of genetically modified (GMO) corn from the United States, in what was seen as a test case if Beijing would allow more of such imports in future.

An official from Hualian said it needed a permit from Beijing in addition to approval from Guangdong's provincial quarantine authority.

"We do not see serious problems as the local quarantine bureau has approved it," the official said.

He said the corn was bought on behalf of a local feed mill which has import quotas.

He said the containers had arrived in Hong Kong and would stay there for several days before being transported to Huangpu port in the province.

"We initiated the import just to check where the problem could be before several 10,000 tonnes of imports," he said.

Traders and industry officials have said China, a major exporter of corn only a few years ago, might emerge as a net importer of the grain as early as next year because the nation's demand is rising faster that its production.

"Everybody is watching Hualian because this is the first," said a senior trader at an international grain trading house.

"If China lets in 100 tonnes, maybe it will be 2,000 tonnes next time, and after that 30,000 tonnes. People are going to test the market," said the trader.

Dealers said another Chinese buyer had booked 100 tonnes of U.S. corn to be shipped in containers if the first U.S. corn cargo cleared the quarantines without problems.
© Reuters 2006

The closer a farm is to a city, the more likely the farmer is to adopt environmental practices like odour controls, says a University of Guelph agricultural economics professor who’s studying the habits of 16,000 Canadian farmers.

Alfons Weersink has found that whether or not farmers make an effort to improve their environment is related to where their farm is located. As the distance to an urban centre becomes shorter, farmers are more likely to take positive approaches to help protect the environment than their counterparts are in more remote rural areas.

“The growing urbanization of much of Canada’s prime farmland means farmers’ practices and land uses are increasingly likely to conflict with the preferences and concerns of nearby urban residents,” said Weersink.

Among the most popular approaches used by farmers to improve their environment are better odour controls, soil sampling to check nutrient availability, improved irrigation methods and better manure storage practices.

“We know farmers are adopting environmental management systems,” he said. “Now we’re trying to identify whether they’re adopting them because they improve their bottom line, or whether it is due to direct and indirect pressures from neighbours.”

Weersink and U of G agricultural economics professor Brady Deaton based their findings on responses of Canadian farmers in a Statistics Canada survey. Eight types of environmental management systems were researched, including manure, fertilizer, pesticide and water management plans. The survey collected data on the use of environmental management systems and a host of other variables such as farm type and demographics.

There are several programs that help guide and document a farm’s efforts to improve its environment; one that’s been particularly successful is the Ontario Environmental Farm Plan introduced by farm organizations in the early 1990s. Through local workshops, farmers emphasize their operation’s environmental strengths, identify areas of concern and set realistic goals with timelines to improve conditions.

The main limiting factor for not embracing new programs is the additional cost to the already cash-strapped farm sector. Weersink said farmers believe they should be partially compensated by government for environmental initiatives because of the many end benefits to society and the cost burden to participate.

The Legislature has passed a reasonable bill safeguarding Vermont farmers from neighbor-against-neighbor warfare over genetically modified seed.

The bill would place responsibility for damage caused by the seed where it belongs — with the companies that are selling it.

Gov. James Douglas, who appears hyper-sensitive to the interests of the large chemical companies, is considering a veto of the bill.

The GMO seed bill addresses problems that arise when organic farm operations are put in jeopardy from contamination caused by the drift of pollen from genetically modified crops. It has happened already in Vermont. Farms lose their organic certification and the advantage that gives them in the market if they cannot assure customers that they practice organic methods, and many customers want no part of the GMO crops that have been developed by Monsanto and other companies.

The bill does not address the debate about the value of GMO crops. Many farmers, including farmers in Vermont, argue that seeds that have been engineered to resist certain pests allow them to use less pesticide on their land, making the crops more environmentally benign and saving money for the farmer. Already GMO seeds account for a high percentage of the corn and other crops grown in the United States. GMO seeds arouse anxiety because of what we don't know about their effects in the environment. But the bill passed by the Legislature does not address these issues.

What it does is establish that farmers who suffer contamination from GMO crops have the right to sue the company that sells the seed instead of the farmer who was using the seed. After all, the companies are patent holders of the seed and retain ownership of the seeds' DNA. Supporters of the bill argue that if the companies are going to retain ownership, they must also retain responsibility.

Opponents of the bill say that if the law passes, seed companies may withdraw from Vermont and Vermont farmers may be left without this new form of agricultural technology. But the seeds companies have not said they would do that. The suggestion that they would do so exists at the level of rumor, and it appears that Douglas has bought into it.

Douglas' real fear may be that passing a bill putting the onus on the seed companies sends an anti-business message that is not good for Vermont. Douglas ought to worry less about the interests of businesses such as Monsanto and worry more about the interests of farmers in Vermont, who are a big business in this state. These include farmers in the expanding sector of organic agriculture. The bill allows them access to Vermont courts to protect their interests if their operations are compromised.

Even farmers who use GMO seed may find comfort in the bill. They would no longer be on the hook if pollen from their crops drifts over to a neighbor's farm, ruining his crops. It is the owner of the seed who will be responsible, and that is the seed company.

Thus, the bill may foment peace, not war, among Vermont farmers, allowing farmers to experiment with GMO seeds if they like, and allowing organic farmers to flourish as well. A veto of this bill would be a thumb in the eye of Vermont farmers, conventional and organic alike.

© 2006 Rutland Herald

Prairie farmers anticipated an 11.1% increase in intended spring wheat plantings to an estimated 19.5 million acres. This would be slightly lower than the 10-year average of 19.8 million acres.

Delivery opportunities for some varieties of wheat have been steady this crop year, and recent price spikes on the Chicago Board of Trade may have encouraged seeding intentions. Some farmers were also able to lock in fixed price contracts at relatively attractive prices.

Saskatchewan farmers, who grow over one-half of the spring wheat area on the Prairies, anticipated a 15.8% increase in area to 10.4 million acres. Manitoba farmers reported an 11.4% gain, and Alberta farmers 3.7%.

Farmers expected to plant much less durum wheat this year, the result of anticipated reduced delivery opportunities for export, as well as poor prices.

Indications are that durum acreage will plunge 30.0% to an estimated 4.1 million acres, well below the 2005 level of 5.8 million acres. The 10-year average is 5.8 million acres.

Barley area declines while oat area jumps
The total area seeded in barley on the Prairies is expected to drop 5.5% to an estimated 9.6 million acres.

Farmers in Saskatchewan anticipate a 12.5% decline to 4.2 million acres of barley, the biggest drop, followed by Alberta with a 1.3% decline to 4.4 million acres. On the other hand, Manitoba farmers, recovering from the 2005 flooding, would plant about 1.0 million acres, an 11.1% increase.

Prairie farmers expected to plant 4.8 million acres of oats in 2006, a 19.9% gain from the 4.0 million acres seeded in 2005.

Manitoba led the way in oats, rebounding from excess water conditions in 2005, with an expected increase of 38.9% to 1.0 million acres. Saskatchewan farmers reported a rise of 26.0%. The area dedicated to oats in Alberta is expected to remain unchanged.

Field pea area edges up

Field pea acreage should rise by a modest 2.3% to 3.5 million acres, well above the 10-year average of 2.8 million acres.

Peas are used in domestic animal rations and are exported. Strong export demand for yellow peas has provided farmers with a solid cash market so far this crop year.

Farmers may also be taking advantage of the reduced need for expensive nitrogen fertilizers and of rotational considerations when planting peas in 2006.

Fewer soybeans, but same level of grain corn, anticipated in the East

Anticipated grain corn acreage in Quebec and Ontario should remain unchanged from 2005, despite low prices and uncertainty, during the survey period, whether Canada's anti-dumping duty on American corn would be maintained.

Corn growers in Quebec and Ontario reported that they intend to seed 2.6 million acres, slightly below the 10-year average of 2.8 million acres.

The soybean seeded area in Ontario and Quebec should decline a modest 42,000 acres to an estimated 2.7 million acres.

In Manitoba, farmers may plant more soybeans as they rebound from the 2005 wet spring that prevented seeding as much area as normal. Indications are that the increase could be an incredible 275,000 acres, bringing the total area to 385,000 acres. However, recent flooding in the Red River valley and the availability of seed may temper this estimate.

The University of Guelph announced April 3 a new initiative at Collège d’Alfred that will bring together resources and expertise to provide research into the science of dairy production.

The Centre for Organic Dairy Research, led by the Dairy Farmers of Ontario, has received more than $580,000 in financial support from the Canadian government through two councils funded by the federal Advancing Canadian Agriculture and Agri-Food Fund (ACAAF). The Ontario-based Agricultural Adaptation Council allocated $410,826 and the Conseil pour le développement de l’agriculture du Québec committed $176,069. Additional support was provided by the University, the Ontario Ministry of Agriculture, Food and Rural Affairs, and the Prescott-Russell Community Development Corporation.

“Today’s announcement is great news for Collège d’Alfred,” said Alan Wildeman, Guelph’s vice-president (research). “This will establish Alfred as an important research node in the dairy industry and will provide milk producers with a focused effort in organic agricultural production. We are grateful to the two councils for their support.”

The centre will include a certified organic dairy herd and associated research facilities, and will operate on a cost-recovery basis funded by milk sales. It will also be a conduit for information and technology generated by research at other institutions in North America and Europe, and will operate in both English and French. Research conducted at the facility will be coupled with outreach efforts designed to facilitate the transfer of the knowledge and technology to the dairy industry, both organic and conventional.

“Dairy farming is one sector where high demand is creating significant opportunities for growth,” said Marcel Couture, Collège d’Alfred’s interim director. “It requires support in the form of scientifically grounded research and technology, which we will be able to provide through this new centre.”

Consumer demand for organically produced food, including organic milk, is growing by 15 to 20 per cent a year in Canada. But the Canadian supply is unable to meet the demand, so about 85 per cent of the organic food sold here is currently imported. The Centre for Organic Dairy Research will be overseen by an executive director and an advisory committee made up of representatives of the dairy industry, farmers, processors and producer organizations.

“This project will assist in the development of a world- renowned organic dairy research centre, located right here in Ontario,” said Bette Jean Crews, chair of the Agricultural Adaptation Council. Roger Riverin, a representative of the Conseil pour le développement de l’agriculture du Québec, added: “At a moment when consumers are more and more sensitive to issues such as respect for the environment and animal welfare, this alternative approach offers an interesting and promising response.”

Collège d’Alfred is part of the University of Guelph’s network of Ontario Agricultural College campuses and research stations throughout Ontario. Located near Ottawa in the eastern Ontario town of Alfred, it offers diploma and certificate programs, which are all taught in French.

Practices and technologies that increase the productivity of existing farmland is one way to help limit any negative impact on biodiversity. Critics often try to relate GM crops with negative impacts, yet the benefits of GM crops related to biodiversity are documented. “I have screened thousands of studies and scientific peer-reviewed papers and I have not seen single documentation of permanent negative impact on biodiversity done by genetically engineered crops. It’s a myth that this has happened,” continues Dr. Ammann in a new video and podcast available at http://www.monsanto.com/biotech-gmo/index.htm.

In fact, growers can more easily incorporate no-tillage practices with herbicide-tolerant GM crops, which generates improvements in soil life and fertility. Independent research and a decade of commercial scale usage also demonstrates that non-target insects are more abundant in insect-tolerant GM crops (Bt crops). “I cannot understand why people are against this technology,” says Dr. Ammann, a member of the Biosafety Committee for Switzerland. “If we want to survive as human beings on this planet, we need to produce more food on smaller amounts of land. This is certainly done best with biotechnology. We cannot do that by just romantically following on old-fashioned agriculture. We must come to terms with using modern technology.”

Experts searching for solutions to the world water crisis at the Fourth World Water Forum in Mexico City on Saturday said much of the problem comes not from dams, lakes or rivers, but an unexpected place: the farm, reports Dow Jones (03/18).

With 525 million small farms in the world, farmers suffer the most from each problem discussed at the forum: poverty, disease, and the lack of sanitation and clean water. Representatives at the Forum noted that farming accounts for 70 percent of the water consumed and a majority of its waste. Agriculture based on fields that temporarily flood is also a major problem because most of that water is wasted through evaporation. Added to these woes are pesticide and herbicide runoff from farm fields that pollute rivers and lakes, as well as soil erosion and salt buildup from irrigation. Traditionally, governments have responded to the problems of small-scale farmers -- defined as those with plots of 2 hectares (5 acres) or less -- by building big dam projects. But Patrick McCully, Executive Director of International River Network says most small farms are so high up in the hills or removed from rivers that they can't benefit from them.

The Associated Press (03/20) further writes that on average, women in developing countries walk six kilometers per day to fetch water. But simple solutions can help such as a World Bank project in Morocco that moved water taps closer to villages increased school attendance by girls in six provinces by 20 percent over four years. This and other projects under discussion at the Forum also cost mere pennies compared to other solutions, like big dams.

In addition, Africa has taken advantage of an estimated three percent of its hydropower potential -- compared to Europe's 75 percent. A majority of Africans don't have regular electricity service, preventing them from operating pumps to extract water from wells. Huge hydroelectric dams could fix that, some say. On Friday during the presentation of a report on the continent's water problems World Bank Director of Water and Energy, Jamal Shagir said that "Investment in hydroelectric infrastructure is not a choice anymore for Africa, it is a must." However, the Director of the World Wildlife Fund, Jamie Pittock, is promoting the restoration of thousands of small, community earthen dams dating as far back as the 13th century instead of big dams or irrigation projects -- whose water doesn't reach the smallest, remote farms.

Agence France Presse (03/20) also reports that several studies unveiled at the conference showed financing the delivery of water to those who need it requires a complex dance between governments, private companies and the tariff structures. A UN report urges creation of new mechanisms "based on the concept of mutual support, without the goal of turning a profit." For example, since the 2003 World Water Forum in Kyoto, Japan, the World Bank has adjusted its rules and can now issue loans directly to big cities, bypassing central governments.

Meanwhile, the World Bank said in a study made public Saturday that although subsidies aim to make water available to more people, in Latin American and Sub Saharan Africa they benefit primarily the middle and upper classes. Jamal Saghir, the Bank's Director for Water and Energy, argued that the majority of poor people don't benefit from the subsidies because they don't use water distribution networks. However, he pointed out, middle-class customers are usually the most hostile to tariff increases.

The New York Times (03/20) writes that for all the focus on privatization, much of the serious work of the Forum was rooted in heart-wrenching statistics. One in three people in the world, 2.6 billion, does not have access to any kind of toilet or latrine, according to the UN report to be presented at the conference on Tuesday. Water-related diseases cause more than three million deaths a year, mostly of children younger than 5. Only $3 billion in aid a year goes to improve water access and sanitation, the UN World Water Development Report said, and very little of that gets to the people who need it most.

Reuters (03/19) further writes that UN officials said on Sunday that drought, poverty, war, pollution and chaotic urban growth are preventing African governments from supplying clean water to their people. The UN announced at a news conference a $550 million loan from the African Development Bank to be spent on small-scale urban water projects over the next five years. Kalyan Ray, a UN infrastructure expert, said that was not enough to meet Africa's water needs. Ray said disruption caused by droughts and wars made it harder for governments to supply their citizens with basic services.

The Director of the UN Development Program's Human Development Report Office, Kevin Watkins writes in a commentary in The International Herald Tribune (03/18) that the buzz-phrase at the Mexico Water forum is "integrated water resource management," meaning that governments need to manage the private demand of different users and manage this precious resource in the public interest. The other, equally profound challenge, according to Watkins, is strengthening the rights and the voice of the poor and this means putting social justice at the center of water management.

Brasilia, Brazil – The Brazilian government said Thursday that the Chinese authorities had authorized Brazil to continue exporting genetically modified (GM) soy to China over the next five years.

The decision was made after a Brazilian mission to China negotiated a longer deadline for certification of Brazilian soy with the Chinese Agriculture Ministry as previously permission for exports was granted on a yearly basis.

The International Relations secretariat of the Ministry of Agriculture (MAPA) in Brazil said that with immediate effect China had authorized Brazil to continue exporting GM soy.

“We managed to get the maximum their legislation will allow. That decision provides greater predictability for Brazilian soy exports to China,” said Denise Mariano, MAPA’s Coordinator of Bilateral Agreements, who was part of the mission to China between March 6 and 9.

Soy exports account for around 25 percent of Brazil’s total exports to China.

According to the Chinese authorities, approximately 30 percent of all the soy imported by the country comes from Brazil.

In 2005, Brazil exported a total of US$1.7 billion in soy beans to China.

The production of GM crops began in Brazil in 2004 when the government provisionally authorized the cultivation of GM soy.
More than 100,000 farmers in Brazil grow GM soy.

The Australian Federal Government is pushing to weaken an international moratorium on so-called "terminator technology", a form of genetic engineering that makes harvested seeds sterile.

The technology - which prevents farmers from saving and reusing harvested seed, forcing them to buy new seeds every year - should be assessed case by case, Australian government officials told a United Nations meeting in Spain in January.

Such a move would open the door to commercial use of the so-called "suicide seeds", according to environmentalists who are especially concerned about the ramifications for farmers in poorer countries who traditionally harvest seed from their crops.

At a time when the world's $28 billion seed market is consolidating into fewer corporate hands, it could also become increasingly difficult for farmers in countries such as Australia to buy seeds that aren't produced with terminator technology.

"Australia's brazen move confirms that an alarming government-industry strategy is in play to overturn the UN moratorium on Terminator," said Lucy Sharratt, of the Canadian-based Ban Terminator Campaign.

Ms Sharratt, who attended the meeting in Spain, said Australia's position dismissed the ramifications the technology could have for indigenous farmers in developing nations who could not afford to buy new seeds every season. But the Federal Government told the Herald allegations it was seeking to overturn decisions taken under the convention were false. A de facto terminator moratorium has been in place since 2000.

It said a blanket ban on terminator technology was not a good approach because it would block research. However, it said genetically modified organisms produced using terminator technology "would be subjected to a rigorous, scientific assessment by the Gene Technology Regulator under the Gene Technology Act 2000".

However, like many OECD nations, Australian regulations consider only the health and environment risks associated with GM. They do not assess the effect GM technology, such as suicide seeds, would have on agricultural and food markets, or address any broader economic or socio-economic issues.

Australian farmers have not been lobbying for the introduction of terminator technology, according to the chairman of the NSW Farmers Association's Bio-Technology Taskforce, Hugh Roberts.

"I cannot see, as of 2006, there is any advantage of having [terminator technology] in the Australian market," he said.

Some proponents of terminator technology have argued that its introduction could prevent the contamination of fields free of GM crops.

However, Mr Hughes, who is in favour of the commercialisation of GM crops, believes concerns about the risk of contamination were unfounded, and therefore terminator technology would have no role to play there either.

SINGAPORE - Some people like to talk to their plants. Now, students at Singapore Polytechnic say they have created a plant that can communicate with people -- by glowing when it needs water.

The students said on Tuesday that they have genetically modified a plant using a green fluorescent marker gene from jellyfish, so that it "lights up" when it is stressed as a result of dehydration.

The light is hard to detect with the naked eye but can be seen using an optical sensor developed in collaboration with students at Singapore's Nanyang Technological University.

The development of such plants could help farmers to develop more efficient irrigation of crops.

Resuming international exports of live cattle and calves on July 18, 2005, after a 25-month moratorium, was a key factor in the increase of livestock receipts. Since mid-July, fed and feeder animals under the age of 30 months have been allowed into the United States.

In 2002, the last full year of unrestricted trade, exports of live cattle and calves represented almost 10% of total livestock revenues and almost a quarter of total cattle and calf receipts.

Between July 18 and the end of 2005, about 575,000 live animals were marketed internationally. Receipts from international sales of live cattle and calves represented 3.6% of total livestock revenues and about 10% of total cattle and calf receipts.

The reopening of the US border also helped bolster prices for cattle and calves marketed domestically. Average slaughter prices for cattle rose 8.6%, while the average price for feeder animals increased 26.0%, compared to 2004.

Despite the improvement in prices for domestically marketed cattle and calves, prices were well below historic averages. The average price for cattle sold for slaughter in Canada was down 10.2%, compared to the previous five-year average, while feeder cattle prices hovered 5.7% below their five-year average.

Cash receipts for hog producers declined 7.9%, mainly due to lower slaughter prices. Revenues from slaughter, representing more than 80% of total hog receipts, were adversely affected by a 9.5% drop in price and a 1.8% decline in marketings.

Receipts from international trade in hogs rose 8.3%, as prices advanced 10.0%. Despite a year-over-year 3.4% decline, the volume of hogs exported remained 30.9% above the previous five-year average.

On the supply-managed side, receipts for dairy products, chicken and turkeys all increased, while revenues from eggs declined. Receipts for milk and cream rose 5.2% on the strength of a 6.6% increase in average price.

Supply-managed commodities accounted for almost 40% of total livestock revenue in 2005.

Grain and oilseed prices dip to near-record lows

Near-record grain and oilseed production in both Canada and the United States in 2005 added to the already large grain stocks (see the February 1, 2006 release Stocks of grain). An abundance of lower quality grains from the 2004 harvest and a strong Canadian dollar also contributed to lower crop prices and receipts in 2005.

Revenues from wheat, excluding durum, fell 22.4% to $1.9 billion as a result of lower prices and Canadian Wheat Board (CWB) payments. Marketings remained flat.

Barley receipts fell 25.7% to $420 million, likewise because of lower prices and CWB payments. A significant rise in feed barley marketings in the last half of 2005 partly neutralized the overall drop in barley receipts.

Farmers received $1.9 billion from canola, down 13.0% from the high level of 2004. Prices fell 24.4%, while deliveries rose 15.0%, reflecting substantial increases in production in 2004 and 2005. Deliveries picked up after the 2005 harvest, supporting the strong volume of domestic crush and the increased pace of exports.

Corn revenues dropped 18.8% to $647 million, as prices tumbled 23.6%. Marketings were up 6.2%, mostly by reason of strong deliveries in the last half of 2005.

On the other hand, receipts for soybeans surged 28.7% from 2004. Although prices fell 20.2%, deliveries soared, mainly on the strength of a record crop in 2004.

Revenues from horticulture crops, which include fruits, vegetables, and the floriculture, nursery and sod industries, were up 1.7% from 2004 and reached $4.2 billion. These crops accounted for about 30% of total crop receipts in 2005.

Program payments up for a third consecutive year

Program payments reached a record $4.9 billion, up 1.1% from the 2004 peak and 25.5% above the previous five-year average.

Large payments delivered through the Canadian Agricultural Income Stabilization (CAIS) program and the Farm Income Payment program more than offset lower withdrawals from the Net Income Stabilization Account (NISA) and decreased provincial income stabilization payments.

The CAIS program delivered $1.7 billion in 2005, more than double the amount in 2004. The CAIS program, which was introduced in the first quarter of 2004, was designed to help producers protect their farming operations from drops in income.

The Farm Income Payment program delivered $886 million. This program was designed to provide immediate federal assistance to Canadian producers, as the first step in an aggressive effort to restructure the national agriculture and agri-food industry.

CALGARY, The Alberta Grain and Oilseeds Producers Advocacy Trust released a report from University of Calgary economist Dr. Christopher Bruce of Economica. In the report Dr. Bruce concludes that grain and oilseeds producers will, on average, lose between $54 and $77 per acre in 2006. This could mean a total loss to the industry in excess of one billion dollars.

There are over 19,000,000 acres cultivated by some 50,000 farmers in Alberta. In the absence of significant government intervention, high energy, land and labour costs will make grain and oilseeds production uneconomical for the foreseeable future.

Speaking on behalf of the Trust, former Alberta Agriculture Minister LeRoy Fjordbotten noted that the price of wheat is dramatically similar to the price enjoyed by farmers over 100 years ago.

It is Mr. Fjordbotten's view that "immediate action is necessary" to avert "widespread economic devastation in rural Alberta." He also called on the petroleum industry to step up and help in devising "a plan for long-term viability in Agriculture," noting that "the environmental and infrastructural benefits associated with the agricultural industry far surpasses the cost of saving the agriculture industry."

If you wish to obtain the full report of Dr. Bruce and other information on the current crisis please visit the website of the Alberta Grain and Oilseeds Crisis Advocacy Trust at: www.agcat.org.

"This is a novel experience for Canadian students," Robert Thirsk said. "It is a once-in-a-lifetime chance to perform experiments with a payload that has spent such a long time in space." For Dr. Mike Dixon, Professor and Chair, Department of Environmental Biology, University of Guelph, "Tomatosphere has provided Canada with an excellent opportunity to put a high-quality science learning experience for students in the context of a uniquely Canadian contribution to space science. The realistic prospects of long term human space exploration requires the technology of biological life support and this small step is helping to incite the next generation of scientists and entrepreneurs in this field."

Richard Worsfold, Director of Business Development, Centre for Earth and Environmental Technologies at the Ontario Centres of Excellence (OCE) agrees, adding, "In order to be competitive, Canada needs bright minds focused on innovation and discovery in science. If we want great scientists in the future, we need to develop curiosity and passion for the subject among young people in our schools today. Tomatosphere is the kind of initiative that will make this goal a reality. We are delighted to have participated in the project since day one."

The Tomatosphere project was undertaken with private and public sector partners and launched in 2000. Since then, over 387,000 young Canadians have had an opportunity to learn about the science of space farming and the role of plants as a source of food, water, and oxygen, and as a way to eliminate the carbon dioxide exhaled by crew during space missions to Mars.

"Heinz is proud to have been a founding sponsor of Tomatosphere," said Scott Makey, Agriculture Manager, Heinz Canada. "Given our experience with tomatoes for more than 130 years, this versatile plant not only looks and tastes great but it provides much needed, vitamins, nutrients, antioxidants, and oxygen necessary for future space missions."

Agriculture and Agri-food Canada research scientist, Andrea Labaj shared the critical value of agricultural research on Earth and in space with the middle school students commenting, "Without agricultural research there would not be food as we know it today - abundant, safe, high quality and nutritious. This is what agricultural research will continue to strive for now and in the future whether here on Earth or in space."

For the 2005-2006 school year, there are already 167,000 students from more than 5,200 classrooms across Canada that have registered to take part in Tomatosphere.

An open house and ribbon-cutting ceremony will be held in the spring when the remaining AgriCentre tenants have moved in.

Fresh, white apple slices: the secret is in the bag

Research done at Agriculture Canada has an impact on apple slice products bought in grocery stores and in restaurants like McDonald's. A team of scientists led by Dr. Peter Toivonen developed a new understanding of apple packaging that is helping the industry provide fresh apple slices with consistent quality to consumers year-round. Together, the research team looked at resolving critical issues that stymied the launching of fresh-cut apple slices for commercial use. They developed minimum packaging specifications to suit many different varieties of apples. These specifications establish a minimum oxygen transfer rate to ensure the apples taste fresh and to reduce secondary browning, which was the most limiting factor in selling cut apple slices. The freshness factor was verified by a sensory analysis of how consumers perceived the flavor and quality from the different packages.

It's a "bug eat bug" world in apple orchards

Spider mites can be a real nuisance for apple growers, damaging the trees and affecting the quality of the crops. Scientists throughout eastern Canada and British Columbia are studying ways to best control these mites, while trying to limit the impact on the environment. They are examining reduced risk pesticides and alternative biocontrol strategies such as using predatory mites. Often, pesticides not only kill the unwanted pests, but their predators as well. In this research project, scientists discovered some predatory mites are resistant to most pesticides used in orchards, and can be bred. By conserving and introducing these predatory mites in orchards, growers noticed improved fruit quality and often don't need to spray for mites, as is the case in British Columbia.

You can lead a cow to water... and let it drink

Dairy farms use a lot of water for their cattle and to clean their equipment. A typical dairy cow drinks about a bathtub full of water every day. Ponds on the farm are a source of water that is regularly replenished by rain. The problem is that pond water often contains bacteria that can make animals sick and ruin tanks of milk. A dairy farm in Stewiacke, Nova Scotia, is testing a number of technologies to purify pond water, including ultraviolet light, aeration and water filtration. In addition to providing water for cattle, the farm uses the treated water to clean its dairy equipment and tanks. Currently, well water in the region contains small amounts of sand and gypsum that can damage the equipment. The project is being funded under the Canada-Nova Scotia Water Supply Expansion Program.

TORONTO, PRNewswire -- Agriculture and Agri-Food Canada announced
today that it has awarded the 2005 Canadian Agri-Food Award of Excellence for Agri-Food Export to Al Safa Halal of Cambridge, Ontario. The announcement was made at the 2005 Canadian Agri-Food Awards of Excellence Luncheon yesterday at The Royal Agricultural Winter Fair in Toronto, Ontario.

Backed by venture capital firms Otter Capital and Packaged Food Investors,
Al Safa Halal is North America's leading provider of "Halal" food products --
products that conform to Shariah (Islamic religious law). All the company's
meat products are "zabiha" -- hand-slaughtered by a Muslim in accordance with
Shariah.

Founded in 1999, Al Safa Halal was originally established to provide fresh
and frozen Halal meat products to the large Muslim community in Toronto,
Ontario. Within a year, however, the company was exporting its products to
the United States, and today the U.S. accounts for over 80% of the company's
sales.

According to Steve Hahn, Al Safa's Vice President and Chief Operating
Officer, the company's product mix has grown as well. "When we started out,
we were mainly providers of unprocessed meat products -- hamburger meat, whole
chickens, items like that. But we quickly came to learn that Muslim consumers
want what mainstream consumers want -- convenience. Today we still make those
original products, but the bulk of our sales are in 'convenience foods' that
can be prepared in an oven, toaster oven or microwave. Items like chicken
nuggets, pizzas, Microwave Beef Pockets." Next up on Al Safa's development
slate: Popcorn Chicken.

According to David Busby, Al Safa's National Sales Manager, the company's
sales have increased every year and are on track to grow 30% in 2005 alone.
When asked to account for Al Safa's tremendous success, Busby named three
significant factors. "I would have to say Quality, Dependability and
Availability," he said. "By Quality I mean that all our production facilities
are certified by CFIA (the Canadian Food Inspection Agency), so they're all
state of the art. By Dependability, I mean that all our products are
certified as Halal by the Islamic Food and Nutrition Council of America
(IFANCA). They're an independent, third party organization, and their seal is
on every box of product we produce. So a customer in Detroit or Chicago or
Houston can look at our product and be assured that a recognized national
religious organization has certified that the product is 100% Halal. The
third element is Availability. We have an extensive network of distributors
throughout the U.S., and our products are available across the country,
coast-to-coast. So when a supermarket in Texas or Florida calls up and wants
an order filled tomorrow, we can do that."
Hahn also emphasized the leverage provided by Al Safa's wide variety of
products. "There are some companies out there who make one or two Halal
products -- often some kind of sausage or deli meat, usually for a local
market -- but that's very different from making over twenty different products
and being able to deliver them nationally, and to do so week after week after
week." Busby agreed. "It's true -- that's another area where Al Safa has a
real advantage. And variety is very important for moving our products out of
specialty stores -- Halal groceries and butcher shops -- and into mainstream
supermarkets."

And it is into the mainstream that Busby sees the company headed. "The
supermarket business is very competitive," he said. "You often have very
similar stores in one small area that are heavily competing for the same
customers, who would like to do so without getting locked into a death spiral
of ever-lower prices. So for a store in that situation, offering a 'Halal
Section' is a way to attract a whole new segment of customers without
sacrificing margin."

"And those are customers who then do ALL their shopping at that store, not
just their Halal shopping," added Hahn. "That means a lot of added sales for
the store that go straight to the bottom line." "Right. And when it comes to stocking a 'Halal Section,' Al Safa is one stop shopping," said Busby. "We can supply an entire freezer door of Halal products on our own. There's no other company outside of the Middle East that can say that."

Is there more room for growth? The Al Safa team certainly thinks so.
"We're fully convinced that Halal is the next big supermarket 'niche,'
says Busby. "First came kosher -- twenty years ago, you could only buy kosher
food at kosher specialty stores. Today there's kosher food in every
supermarket. Then came organic. Five or ten years ago, organic products were
only available at health food stores. Today, Amy's Kitchen has frozen organic
convenience items in every supermarket. As far as we're concerned, Halal is
next. And when it comes to frozen convenience products, Al Safa is Halal."

GUELPH, ONTARIO - A world-class statesman farms in Ayr, Ontario. Bert Perriman was recognized as Ontario's Distinguished Co-operator at the 7h Annual SPIRIT awards as part of the Co-op Week Gala held in Burlington, ON, last night.

Perriman was nominated by Waterloo-Oxford Co-operative Inc. board of directors which thanked him for his leadership of the board and another co-operative board from 1980 to 2004. Perriman has also been a spokesman for Ontario farmers in the GROWMARK System, which came to Ontario in 1994 from the Midwest United States.

"Mr. Perriman has demonstrated his ability to be a leader time and time again," says nomination supporter Ken Mudry, former general manager of Waterloo-Oxford Co-op. Mudry notes that Perriman and his family are successful, innovative farmers during times of change. "Bert brings his experience to help guide and lead co-operatives...at times a very challenging role." The board of directors adds that his advice is valued highly.

Perriman has been a leader in many other organizations including the Waterloo Region Pork Producers Association, Waterloo Region Plowing Match Association, World Plowing Match (2003), Waterloo Needs Committee of Ontario Agriculture Training Institute (1994), and Waterloo Region Plowing Match Association (1990-1995). He was a graduate of the Advanced Agricultural Leadership Program and traveled to China as part of his study.

He and his wife Linda and a son operate a 750-acre cash crop and 2,400-head-per-year hog finishing farm.

GUELPH, ONTARIO--(CCNMatthews - Oct. 19, 2005) - Ontario farm families, managers and farm advisors will enjoy improved access to the tools they need to help them achieve higher levels of business and economic success. The Agricultural Management Institute (AMI), a $5 million business management and skills initiative was launched today by Andy Mitchell, Minister of Agriculture and Agri-Food, and Leona Dombrowsky, Ontario Minister of Agriculture, Food and Rural Affairs.

"The Government of Canada recognizes the value of providing producers and their business advisors with management tools, information, resources and training to hone their business skills for today's globally-competitive marketplace," said Minister Mitchell. "Our commitment of $3.3 million to the Agricultural Management Institute will provide business management tools to enhance decision-making and farm profitability and lead to a stronger and more competitive agri-food economy."

"New opportunities in agriculture, food and bio-products will strengthen our agri-food sector and our rural communities," said Minister Dombrowsky. "The Agricultural Management Institute program will help current and future producers access the information they need to move their businesses in new directions and win new markets."

The program, which will be administered by the Agricultural Adaptation Council (AAC), will provide funding for projects to develop business management and risk management tools and training for farm families, farm managers and farm business advisors. The program, which is cost-shared under the Renewal pillar of the Agricultural Policy Framework, will develop and extend business management resources through partnerships with producer groups, research institutions and the financial services sectors.

"As a long-time partner in program delivery, AAC is pleased to bring its knowledge of the needs of agriculture to this initiative," said Bob Bedggood, AAC Chair. "The Council is a catalyst for advancement, innovation and transformation for the long-term growth of the sector."

"Ontario producers are continually adopting new business-related best management practices to improve their bottom line," said Bette Jean Crews, Chair of the AMI Advisory Panel. "AMI will provide Ontario farmers and their advisors with more tools and resources to enhance their business savvy and competitiveness."

To deliver the AMI, the 12-member advisory panel comprised of representatives of producer organizations, financial/business services sector, research, agri-food industry plus funding and delivery partners will provide strategic direction and ensure projects fulfill identified priorities for the sector.

The AMI Advisory Panel will evaluate proposals in five distinct areas:

- Benchmarking and business best management practices- Business risk management- Business succession planning and new entrants- Human resources development and training- Innovation and market opportunities

Three initiatives are already approved and underway:

- The OATI Learning Group (formerly the Ontario Agricultural Training Institute) is developing three producer education courses for "Webinar" delivery over the internet through narrow band width telephone dial up connections. The courses will help address producer skills development needs in two critical areas - commodity marketing strategies, and attracting and retaining agricultural labour. Total cost $36,500.- The OATI Learning Group will develop and pilot test a professional development program for private sector business advisors in the area of farm succession planning and capital transfers. Total cost $65,100.- The George Morris Centre is conducting a study of effective financial tools for Plum Pox Virus Eradication. This work is being done to understand the linkages between Business Risk Management Programs and asset-loss financial assistance payments under the Plum Pox Virus (PPV) Eradication Program. Total cost $18,100.

Application forms and additional information will be available soon on the Agricultural Adaptation Council's website at www.adaptcouncil.org or by calling 519-822-7554.