Operating revenues generated by Canada's aquaculture industry rebounded to an all-time high in 2005, in the wake of increased production and exports.

The industry reported record revenues of $752.6 million, up 11.0% from 2004. This increase ended two consecutive years of declines.

Finfish sales, which accounted for just over 88% of total operating revenues, increased 12.3% to $663.0 million. This growth resulted from a 40.5% increase in the value of salmon production, which dominates the industry.

The value of aquaculture exports surged 22.0% to $514.6 million. The most significant contributor to this increase was a 25.2% jump in the value of fresh salmon exported to the United States, Canada's most important market.

Finfish sales grew in both of the country's largest aquaculture producing provinces — British Columbia and New Brunswick.

Higher salmon production in British Columbia resulted in a 14.5% jump in finfish revenues to $331.1 million. In New Brunswick, production remained stable, but sales rose 6.6% to $258.0 million.

Revenue from molluscs increased 2.4% to $68.8 million. Sales grew in most provinces, except Prince Edward Island, which accounts for 39.2% of mollusc sales in Canada. Revenues there dropped 10.0%.

Nationally, product expenses grew 1.7% to $543.1 million in 2005. These consist of the cost of products and services purchased from other businesses, excluding capital and labour costs.

Expenses for transportation, storage, energy and repair and maintenance for machinery increased notably in 2005. Feed costs, which account for 45.1% of all product expenses for finfish producers, increased 1.8% to $245.0 million.

The aquaculture industry produced a gross output, including sales, subsidies and inventory change of $784.6 million in 2005, up 6.7% from a year earlier.

The gross value added by the industry to the economy, the difference between gross output and total product inputs, reached $241.8 million, up 18.9% from 2004.

"The president of the World Bank, Paul Wolfowitz, called Tuesday for the reduction of agricultural subsidies by more developed countries which often serve to finance rich agriculturists to the detriment of other small poor agricultural nations.

The United States subsidizes their agriculturists strongly, which is damaging to agriculturists in the poorest countries who cannot compete, according to an example given by Wolfowitz during his participation in the 115th Assembly of the Inter-Parliamentary Union (IPU), which concluded Tuesday in Geneva. ..." [Agencia EFE (Spain)/Factiva]

"... In Geneva, Wolfowitz said both rich and poor countries needed to show flexibility. 'There has to be concessions from all sides, including the developing countries,' he told journalists after addressing lawmakers of the IPU. ..." [Reuters/Factiva]

"... Whatever else comes out of Doha, there should be something special that deals with the poorest countries,' he told [the] meeting of parliamentarians from around the world... . Wolfowitz also indicated that one of the few successes in the five-year talks, a deal struck at a World Trade Organization (WTO) meeting in Hong Kong in December 2005 to grant some concessions to least developed countries, should go further. ..." [Agence France Presse/Factiva]

"... One of the concrete results from December was the decision by the 149 member states of the WTO to authorize the least developed countries to export 97 percent their products without customs duties or quotas to rich countries beginning in 2008 based on the 'everything but weapons' model launched by Europe. ..." [La Tribune (France)/Factiva]

"... Wolfowitz told the assembly of the IPU, which groups MPs from 146 countries, that trading nations should expand on the deal on customs duties for the 32 poorest nations in the WTO. They should be much more generous on preferential treatment for the poorest nations, he added in response to questioning from parliamentarians which was dominated by concern about the deadlock in the WTO talks. ... Wolfowitz stressed that trade reform was 'critical' for the fight against poverty. ..." [Agence France Presse/Factiva]

"Wolfowitz also told the assembly that 'the fight against poverty in Africa can succeed. The continent is rich is raw materials, but also in its men and women. ...' ... The President of the World Bank did not hide the extent of the challenge. Between 1981 and 2002, the number of people living below the poverty line almost doubled to 300 million. But there is also another side of the coin. Seventeen countries have witnessed an annual growth of more than 4 percent for the past ten years. Rwanda and Mozambique, formerly war-torn countries, post the best results. And, last year, Ghana and Tanzania emerged as the top reforming countries in the world.

But the war against poverty is far from being won. To get out of the rut, according to Wolfowitz, Africa must also take a stand against corruption. 'Each dollar lost is a dollar which is not invested in the creation of jobs, health or education,' he explained. He was pleased that 33 African countries ratified the UN Convention against corruption [and] he hailed the initiative of certain countries, such as Nigeria, which repatriated the fortunes sent abroad by corrupt politicians. ..." [Le Temps (Switzerland)/Factiva]

In 2005, Canadian growers planted approximately 14.5 million acres (5.8 million hectares) of genetically modified (GM) canola, corn and soybeans.

The majority of plant biotechnology in Canada enables farmers to adopt conservation tillage – a reduction or complete elimination of plowing the soil to eliminate weeds and prepare fields for planting. The benefits range from soil erosion control to a reduction in green house gas emission.

"I’m improving the structure of my soil with zero tillage. I’m using less pesticides," says Jeff Hoiness, a canola farmer who has enjoyed the benefits of plant biotechnology in Canada since GM canola was first introduced in 1995. "It’s better for the environment. We have less soil erosion than we did in the past. I mean, that’s got to be good for a lot of other people than just myself. We’ve increased the wildlife habitat.

"We’re using less fuel per acre, so that means less green house gas emission," continues Hoiness, comparing his production practices in GM canola from the last decade to those he used the decade before. "The things that I’m doing on our farm that I feel are of benefit with the biotechnology are a benefit to all of society."

Hoiness shares these comments, as well as his perspective on foreign markets and the future of plant biotechnology in Canada, in an exclusive video interview and podcast available at the Conversations about Plant Biotechnology Web site: www.monsanto.com/biotech-gmo/default.asp.

In addition to Hoiness’ video and interviews with two of his fellow Canadian farmers – Art Enns and Lorne Hamblin – visitors to the site can access comments about the benefits of plant biotechnology from farmers in eight additional countries, including Argentina, Australia, Brazil, India, the Philippines, South Africa, Spain and the United States.

Conversations about Plant Biotechnology is designed to give a voice and a face to the farmers and families who grow biotech crops and the experts who research and study the technology. The Web site contains more than 40, two- to three-minute, extremely candid, straightforward and compelling video segments with the people who know the technology best. The Web site is hosted by Monsanto Company — a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality.

Data from the annual September Farm Survey of 17,100 farmers, which was conducted from September 5 to September 12, revealed only moderate changes from the preliminary crop production survey report released in August. The notable exception was in Manitoba where conditions improved considerably right up to the harvest.

Above-average temperatures and dry conditions combined to stress western crops, but also allowed for quicker crop maturity and an early harvest. Many areas reported having most of their crop harvested at the time of the survey.

Prairie farmers reported that they expect to harvest 8.4 million tonnes of canola, down 1.1 million tonnes from the 9.5 million tonnes harvested in 2005. Production should remain well above the 10-year average of 6.8 million tonnes. The anticipated decline is due to a drop in yield from an estimated 32.6 bushels per acre to 28.8 bushels per acre. Harvested area is expected to remain unchanged from 2005.

Manitoba farmers reported a considerable jump in expected canola production from the crop report released in August. The estimated production has now reached a record 1.8 million tonnes, eclipsing the old record set in 1998 by 11,400 tonnes. Yield could also enter record territory at 32.1 bushels per acre. The previous record was 31.3 bushels per acre set in 2003.

Saskatchewan production could fall 21.0% to 3.7 million tonnes, while Alberta farmers expect a 18.9% decline to 3.0 million tonnes. Both decreases are the result of significant declines in expected yields.

Flaxseed production declines

In the Prairies, flaxseed production could fall 11.3% to 959,400 tonnes. This is the result of an anticipated drop in yield from 21.5 acres per bushel in 2005 to 18.4 bushels per acre in 2006, near the 10-year average of 19.1 bushels per acre.

Producers in Saskatchewan, where the majority of Canadian flaxseed is grown, reported an expected decline in production of 18.6% to 717,100 tonnes, while Manitoba farmers reported a strong increase of 38.6% to 204,200 tonnes.

Spring wheat production up marginally

Prairie farmers expect to harvest 18.8 million tonnes of spring wheat, up 2.3% from 18.3 million tonnes in 2005. The 10-year average is 17.6 million tonnes. Harvested area is expected to rise by 2.7 million acres, but the yield could drop from 39.7 bushels per acre to 35.1 bushels per acre.

Manitoba farmers expect a strong increase in spring wheat production, up 49.2% to 3.5 million tonnes, the result of strong increases in yield and harvested acres. The 10-year average production is 3.3 million tonnes.

The spring wheat harvest in Alberta could fall 9.1% to 6.7 million tonnes, as yield is expected to drop by 6.9 bushels per acre. Saskatchewan farmers now expect a minor output decline of 46,300 tonnes to 8.6 million tonnes, the result of a lower yield but an increase in harvested area.

Durum production tumbles

Durum wheat production in the Prairies is expected to fall 40.2% to 3.5 million tonnes, down 2.4 million tonnes from 2005. The 10-year average production is 4.7 million tonnes. This decline is attributable to an average drop of 7.3 bushels per acre and to 1.5 million fewer harvested acres.

Production in Saskatchewan, where over three quarters of Canadian durum is grown, could decline 2.0 million tonnes to 2.8 million tonnes. Alberta farmers reported an estimated 32.3% decline in production to 691,300 tonnes, the result of 260,000 fewer harvested acres.

Feed grain production mixed

Prairie barley production should fall 20.5% to 9.2 million tonnes, as both yield and harvested area are expected to decline. The 10-year average production is 11.4 million tonnes.

Manitoba production was reported to have surged 80.2% to 1.2 million tonnes, returning to the 10-year average. Saskatchewan output is likely to drop 36.0% to 3.4 million tonnes, while Alberta production is expected to fall by 18.0% to 4.6 million tonnes.

Oat production in the Prairie Provinces could rise 11.1% to 3.3 million tonnes, the result of a similar increase in harvested area, and in line with the 10-year average of 3.1 million tonnes.

Provincially, oat production in Manitoba should rebound 121.4% to 975,600 tonnes, while Saskatchewan production should edge up 1.5% to 1.7 million tonnes. Oat production in Alberta is expected to fall 26.6% to 630,800 tonnes.

Field pea production should decline in the Prairies

Prairie field pea production should fall 347,700 tonnes from 2005 to 2.7 million tonnes, as yield is expected to drop 15.5%. The 10-year production average is 2.2 million tonnes.

Manitoba production should rebound 37.1% to 85,700 tonnes, an estimate still considerably short of the 10-year average of 147,200 tonnes. In Saskatchewan, farmers reported a 15.0% production decrease to 2.1 million tonnes, the result of a 6.1 bushel per acre drop in yield. At 2.7 million acres, the harvested area could be a record, eclipsing the one set in 2005 at 2.6 million acres. Dry pea harvested area has been rising in Saskatchewan since 2003. In Alberta, production may drop slightly by 1.2% to 609,900 tonnes, the result of a 7.2 bushel per acre drop in yield. The 10-year average production is 492,000 tonnes.

Ontario and Quebec farmers expect to produce less grain corn

Quebec farmers expect corn production to fall 19.1% to 2.8 million tonnes, an estimate not seen since 2000 and below the 10-year production average of 2.9 million tonnes. This reduction would be attributable to a smaller harvested area and to a lower estimated yield compared to 2005.

In Ontario, production estimates for corn were down 1.8% to 5.7 million tonnes, the result of a 6.9 bushel per acre decline in yield. Production should remain well above the 10-year average of 5.4 million tonnes.

Soybean production may break a record in Quebec but could decline in Ontario

Soybean production in Quebec is expected to increase 5.0% from 2005 to a potential record 530,000 tonnes, the result of a rise in harvested area and above-average yield estimates. The previous record production was 520,000 tonnes, set in 2004.

Soybean production in Ontario could fall by 3.5% from 2005 to 2.5 million, a value still well above the 10-year average of 2.1 million tonnes. This reduction would be the result of a decline of 125,000 acres of harvested area.

Prices farmers received for livestock and animal products fell 0.9% in July from a month earlier, as dairy, hog, cattle and calf prices dropped.

After climbing to their highest level in the last 10 months in June, hog prices edged down 1.1% in July.

Cattle and calf prices were 0.2% lower compared with June. After increasing 14.5% in July 2005, when the border re-opened to restricted trade of live animals, the month-to-month changes for the index have fluctuated from a 2.3% decline to a 2.7% increase.

Annual McGuinty agriculture announcement does not address long-term problems of industry

PETERBOROUGH - Progressive Conservative Party Leader John Tory today said Dalton McGuinty's annual Plowing Match agriculture announcement continues his legacy of promise-breaking and turning his back on Ontario farmers.

"Three years of McGuinty Liberal cuts and neglect have been damaging for Ontario's farmers," said Tory. "Our rural communities and agriculture industry deserve to be celebrated for the important role they play in Ontario's economy. Unfortunately, instead of a real long-term plan for agriculture Dalton McGuinty makes delayed announcements for strictly political reasons."

Tory made the comments today at the International Plowing Match in Peterborough, which he attended with the entire Progressive Conservative Caucus. The McGuinty Liberals announced today funding under the Canadian Agricultural Income Stabilization (CAIS) program as a result of changing inventory valuation. The federal government announced this change over four months ago but the McGuinty Liberals delayed announcing their participation, likely waiting for the Plowing Match. This money is already starting to flow in BC, Alberta, Saskatchewan, Manitoba, Nova Scotia, New Brunswick and Newfoundland.

"This delay has seen Ontario fall behind other provinces in Canada where this money is already flowing," said Tory. "Dalton McGuinty shouldn't have waited and he should have announced a long-term risk management plan for agriculture. He has completely broken his promise to make the Ministry of Agriculture a lead ministry and he keeps turning his back on our farmers." He added the McGuinty Liberals should also follow the federal government's lead and defer CAIS overpayments and interest for farmers.

Tory added: "This is another slap in the face to Ontario's farmers who have seen the McGuinty Liberals cut $400 million from the Agriculture budget. This is a government that has not been on the side of Ontario's farmers or rural communities."

$185 Million Investment Builds Opportunity For Farmers, Improves Rural Infrastructure

PETERBOROUGH - Premier Dalton McGuinty announced on September 19, 2006 a new investment in rural Ontario that will build opportunity for farmers and strengthen vital infrastructure in rural communities. "Farmers are the backbone of our rural communities and they've helped build a world-class agri-food sector in Ontario," said Premier McGuinty. "We want to continue to do our part to support growth and innovation in the agri-food industry to make sure our farmers and their families find success."

The McGuinty government will invest an additional $185 million in rural Ontario. Of this, $110 million will go directly to farmers to provide transitional funding as we move to a better method of valuing inventory under the Canadian Agricultural Income Stabilization program, and to continue the Self-Directed Risk Management program. Another $75 million will be invested in rural infrastructure.

Premier McGuinty made today's announcement at the International Plowing Match in Peterborough. He was joined by Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs.

"The McGuinty government recognizes the challenges facing Ontario farmers, and today's announcement will help them meet those challenges," said Dombrowsky. "Today's investment in rural development is another example of the McGuinty government's commitment to the strength and success of Ontario's rural communities."

Building opportunity for farmers and investing in rural infrastructure are just the latest examples of how the McGuinty government is working on the side of Ontario families to strengthen rural communities.

Other initiatives include: <<

- Investing $800 million in farm income stabilization and support programs

- Creating a $520-million Ontario Ethanol Growth Fund to support the construction of ethanol plants that will build opportunity and create jobs in rural communities

- Investing $40 million annually in agri-food research and innovation

- Providing $317 million in support, along with federal partners, to farmers hurt by the repercussions of BSE.

"Ontario's agricultural sector is a vital contributor to our growing economy," said Premier McGuinty. "We're going to continue to work with the agri-food industry to chart a course for the future that will build opportunity for farmers and strengthen our rural communities."

Total Canadian wheat stocks, which include on-farm stocks and commercial stocks, were estimated at 9.7 million tonnes, an increase of 23.0% or 1.8 million tonnes over July 2005.

On-farm Prairie inventories of wheat excluding durum were up 30.2% from July 2005 to 2.7 million tonnes. Farmers reported increases in Saskatchewan and Alberta to amounts more than double the 10-year average, while a slight decrease was reported in Manitoba.

Driven by the introduction of genetically-modified crops into Argentina a decade ago, soya production has rocketed to a record 40m tonnes in the last season, and the country is the world's biggest producer of soya oil – a prime raw material to make biodiesel.

Sugar and cereals are used to make ethanol, which Brazil has turned into a major industry. Currently, almost half Argentina´s exports are derived from farming and 20 percent are direct exports of raw materials, so biofuels – which sell for around 70 per cent more than the plain oil – represent a way of adding value to abundant output from Argentina´s primary sector.

"We´re building three [biofuels] plants. We dismantled our previous one as it couldn´t expand any more," said Jorge Kaloustian, whose company Oil Fox is one of Argentina´s biofuels pioneers. He expects to be back in production in October, with output of 400m litres a month, rising to 50m by the middle of next year. Part of that will come from a $20m plant that he says will be the biggest in the world and is due to start up next February.

And it doesn't stop there. Spanish major Repsol-YPF, one of the biggest oil energy companies in Argentina, is planning to open a $30m plant next year with capacity of 100,000 tonnes in the first year.

Argentine edible oils producer, Aceitera General Deheza, is eyeing a $40m investment to build a 200,000 tonne plant, probably near the city of Rosario, north of Buenos Aires, which is the centre of Argentina´s soya processing industry and home to the world´s highest concentration of soya bean crushing plants.

Vicentin, another oils producer, is also studying a $25m plant where it hopes to be able to produce 300,000 tonnes a year. Among foreign companies eyeing Argentina´s potential is U.S.-based Imperium Renewables, though it is keeping its plans under wraps. Argentine farmers are major diesel consumers but there is little scope to expand domestic biodiesel use because it cannot compete with state subsidized fuel.

However, demand will grow because of a law passed in April requiring fuels sold at filling stations to contain 5 per cent of biofuels, which comes into effect in 2010. But just as Argentines sell abroad most of the soya their country produces, exports are the engine driving the potential of biofuels.

"In maybe five years, Argentina will be able to export 1.5m tones [a year]," said Miguel Almada of the Agriculture Department´s biofuels programme. Argentina currently produces an estimated annual 30,000 tonnes.

Officials are still working out the fine print of how to apply the April law – including, crucially, the tax regime. Unpopular export tariffs on agricultural exports designed to keep inflation at bay could prove a disincentive to investors.

But Argentina´s low production costs and vast amounts of agriculturally active land make it an attractive prospect, and producers say supply is not a worry. "With 5 percent of [oil] available, we can supply our plants easily," said Kaloustian. Almada said 40 percent of the 600,000 tonne initial requirement for the biofuel blend required in 2010 could be covered simply by collecting soya lost in the harvesting process.

"One of our concerns is that biofuels look very attractive today but all these plants could come online just as oil prices start to come off," said Jed Bailey, managing director for Latin America at Cambridge Energy Research Associates. But that would not mean the demise of green fuels, just slower progress, he said.

Copyright The Financial Times Ltd

Farm Product Price Index
(1997=100)
	June 2005r	May 2006r	June 2006p	June 2005 to June 2006	May to June 2006
				% change
Farm Product Price Index	96.5	95.7	96.0	-0.5	0.3
Crops	88.5	84.7	82.8	-6.4	-2.2
Grains	75.3	65.6	66.0	-12.4	0.6
Oilseeds	83.0	70.3	71.0	-14.5	1.0
Specialty crops	91.3	75.3	79.9	-12.5	6.1
Fruit	111.4	106.6	92.8	-16.7	-12.9
Vegetables	111.0	112.9	113.0	1.8	0.1
Potatoes	116.0	157.0	161.6	39.3	2.9
Livestock and animal products	103.1	105.3	107.3	4.1	1.9
Cattle and calves	100.0	112.8	115.6	15.6	2.5
Hogs	85.6	74.6	80.3	-6.2	7.6
Poultry	99.4	94.5	94.6	-4.8	0.1
Eggs	95.6	97.9	97.9	2.4	0.0
Dairy	124.9	128.6	127.4	2.0	-0.9
r revised p preliminary