A new market outlook report from Agriculture Canada predicts barley production will be reduced over the next three years.

"Over the medium term, the area seeded and harvested for barley in Canada is expected to decline slowly and bottom out sometime around 2013," says the report from the Agriculture and Agri-Food Canada Market Analysis group.

One of the main reasons given for the reduced acreage is the decline of both the cattle and hog numbers on Canadian farms.

"In its September 1 release, CANFAX estimated cattle on feed declined by 8.4 per cent from 2008-09 to 0.63 million head. Compared to two years ago cattle on feed were down almost 21 per cent," says the report.

The low prices for cattle combined with trade issues such as U.S. country of origin meat labelling is forcing farmers to reduce the size of their herds. Similar factors are facing the hog industry which is also driving down demand for barley from pork producers.

"Canadian hog numbers may fall to the lowest level in a decade due to ongoing financial losses approaching $55 per pig. At 11.5 million head, Canada's hog herd will end 2009-10 22 per cent smaller than at its peak in 2005 and the smallest since 1998," notes the report.

Agriculture Canada says there are two other factors weighing on domestic demand for barley in the short term. The late harvest has impacted crop quality and there's expected to be 3.2 million tonnes of feed wheat available which will compete with barley in feed rations. Also, more dried distillers grain from the expanding ethanol industry will compete with barley in the cattle feeding sector.

The export prospects don't look much better as the recent strength of the Canadian dollar makes barley more expensive for foreign customers.

"As well, near-record production of corn in the U.S., a good EU-27 barley crop and rapidly expanding grain production in the Black Sea region are constraining feed barley exports."

While the outlook for feed barley is not great, Agriculture Canada sees steady production and demand for malting barley.

"Demand for malting barley is projected to rise slightly with domestic processing continuing stable and exports rising at a slow and steady pace to about three million metric tonnes by 2018."

Agriculture Canada is expecting barley production this year to reach 9.2 million metric tonnes. While there’s some concern about the quality of this year's crop due to the cool growing season and late harvest, the "volume selected for malt is expected to be at near normal levels."

The price outlook in the report doesn't hold much upside potential as pressure will come from the strong Canadian dollar, record U.S. corn supplies, large EU production and stable world supplies.

"The cash price of feed barley, in-store Lethbridge, is forecast to fall to $155 a tonne from $179 a tonne in 2008-09," says the report.

A new report from Statistics Canada show what most agriculture producers already know: last year was a good one for Canada's grain and oilseed producers, but livestock producers -- particularly hog farmers -- had it rough.

Statistics Canada reports rising feed costs and virtually flat market prices combined to put the squeeze on some farmers as production and inventory of both hogs and cattle fell significantly.

The agency says large production of grains and oilseeds and higher prices contributed to an increase in farm cash receipts in 2008.

Total farm cash receipts in constant dollars, which consisted of receipts from sales of crops and livestock plus program payments, increased 10.9 per cent.

Virtually all of the increase -- 96.2 per cent -- was attributable to crops receipts.

Internationally, exports of Canadian agricultural and fish products in 2008 increased 18.7 per cent from 2007, while imports rose 11.7.

As a result, the nation's trade surplus in agricultural and fish products increased to $12.3 billion from $8.9 billion.

The agricultural trade surplus accounted for 26.3 per cent of Canada's total trade surplus, its highest share in 10 years.

While he was hoping the production cutbacks at Cavendish Farms could be avoided, the chair of the Prince Edward Island Potato Board said they came as no surprise.

"When we negotiated our contract this year, the company told us they would be buying 15 per cent less," says Boyd Rose. "We had been hoping the economy would pick up and they could buy more -- unfortunately that didn't happen and I think this announcement just reflects the fact they are buying less potatoes."

The company is shutting down its two Island plants, along with a facility in Jamestown, North Dakota, from Nov. 20 to 27 and again from Dec. 23 to Jan. 2. As well, the company plans to shut down for one week every two months in 2010 until the market improves.

"Current economic conditions in the U.S. -- including an unemployment rate of close to 10 per cent -- have resulted in a drop in consumption of french fries (primarily at fast food restaurants)," says company spokesperson Mary Keith. "A significant drop in demand for frozen potato products in the U.S. means that we must adjust our production levels and inventories." 

Keith says the move will impact about 550 employees. She added all contracts with growers will be honoured.

Close to 60 per cent of the 85,000 acres planted in Canada's biggest potato producing province is destined for processing. Although there are some other players including McCain Foods and a dehydration plant, the majority of the crop is sold to Cavendish Farms.

Both Keith and Rose note the plant is aggressively seeking new markets and they are hopeful the slowdown will only be temporary. It’s the first time in over a decade the Island plants, which usually operate on a 24-hour cycle for over 300 days each year, have seen a slowdown.

"It is another sign showing that, despite what the economists are starting to say, we are still a long way from a recovery yet," Rose says.

Cavendish Farms is the largest private sector employer in P.E.I. and the provincial government has announced it’s looking at using training money under a labour market development agreement to pay workers while the plant is shut down.

If the economic downturn continues, both Keith and the board chair predict a tough round of negotiations when the company and the board's processing committee sit down next spring to work out a price for the 2010 crop.

A new report has been released as part of the Canadian pulse industry's effort to grow demand for peas, beans, lentils and chickpeas.

Entitled, Give Peas a Chance - The case for more pulses in the field and on the plate, this white paper report focuses on how using pulses can improve the nutritional profile of food products while reducing the carbon footprint of the food production process.

"Pulses have a great story to tell as they offer both sustainability in the field, and positive nutritional results on the plate," says Gordon Bacon, CEO of Pulse Canada, the agency that commissioned the report.

This white paper was released on Oct. 27 and since has attracted a lot of interest from a variety of sources. Bacon says CEOs of major food companies, vice-presidents in charge of purchasing, environmental groups and dieticians have all expressed interest.

Bacon says the research work showing the health benefits of pulse crops is proving to be effective. Clinical trials have shown that eating pulses are not only nutritionally beneficial, they provide excellent health benefits and can even help combat chronic health concerns such as diabetes, heart disease and obesity.

"The whole idea of the white paper is to spark some interest and have some executives in food companies start to ask questions about whether they've looked at pulses and perhaps consider reformulating their snack food line."

The report also states that pulses are an environmentally-friendly crop. As a member of the legume family, they have the ability to make their own nitrogen fertilizer from the atmosphere. Producing their own fertilizer reduces the need for manufactured nitrogen made from fossil fuels.

Ultimately, the goal is to increase demand for pulse crops which Bacon believes will create greater returns for growers.

"The message is very simple -- if more pulses are eaten -- more will be grown and that's great news for growers, health care and the environment."

Two dollops of government aid are making the marketing efforts of Quebec syrup and cider producers a whole lot sweeter.

At a recent press conference in Rimouski, Jean-Pierre Blackburn, minister of state for agriculture, announced that Ottawa would provide $760,000 to the Fédération des producteurs acéricoles du Québec to help it better market its products on the world stage.

At the same time, the Quebec government announced $250,000 in funding to the provincial association of cider producers to help with marketing within the province.

According to Blackburn and Serge Beaulieu, president of the syrup federation, $595,000 of the federal aid money will be used to implement a long-term marketing strategy for overseas sales. Another $169,000 will be spent on two federation-run, Quebec-based studies on the flavour-enhancing and health-based benefits of maple syrup compared to refined sugars and other sweeteners.

The marketing plan and studies are designed to promote the consumption of value-added maple products in international markets -- particularly in Europe, Asia and Japan -- with a goal of doubling foreign sales by 2020.

"The Fédération des producteurs acéricoles du Québec works actively to improve the competitiveness of maple products on both domestic and international markets in order to support this industry's long term growth," Blackburn says. "Recent years have been difficult for maple syrup producers, and our government has not let those producers down."

Quebec Agricultural Minister Claude Béchard made similar comments in regards to the quarter-million dollars that Quebec is providing to cider and ice-cider makers. Last year, cider and ice-cider producers sold $12.6 million through the province's liquor stores -- a 900 per cent increase since 2000.

"A better positioning of artisanal products (like cider) on the Quebec market will act as a lever on the capacity to create wealth in the producing regions," Béchard says.  "(And) a greater visibility is absolutely needed to meet the needs of consumers who are trying to give priority to Quebec-made products in their regular shopping habits."

Big Sky Farms Inc., the largest hog producer in Saskatchewan, has applied for creditor protection.

The Humboldt-based company, which is 70 per cent owned by the Saskatchewan government, blames what it calls an unprecedented and protracted downturn in the North American pork market.

But president and CEO Casey Smit is expressing confidence the company can bounce back, saying Big Sky will continue to work with its stakeholders to position itself for success in the future.

Smit says normal operations will continue and all workers will remain on the job while the company reorganizes.

The hog producer has 40 operations in Saskatchewan and Manitoba that employ more than 400 people.

Stomp Pork Farms, the second-largest hog producer in Saskatchewan, filed for bankruptcy earlier this year.

Producers and processors of Saskatoon berries have formed the Saskatoon Berry Council of Canada to promote the industry. And they are looking for members.

There is currently no collective marketing effort to promote the berries, which are popular on the Prairies but relatively unknown in other parts of the country and internationally, says Alberta director Nadine Stielow.

According to Stielow, there are now enough acres planted on the Prairies to start making it into a real industry. The council believes the time is right to start investing in a generic marketing strategy aimed at establishing profitable and continuous channels of consumption.

With that mandate in mind, the SBCC is organizing a series of regional meetings in Alberta, Saskatchewan and Manitoba over the next few months to bring together stakeholders interested in active membership to advance the industry. 

The group has already hired a communications firm, which has completed research that will form the starting point of the marketing effort. Based on this research, the council is now in a position to present a concrete plan of action, including timelines, in order to push forward with the initiative.

Stielow explains that the meetings are intended to inform stakeholders about the progress to date and obtain feedback and input on developing a successful marketing strategy. "We want everyone with an interest in the growth of the industry to attend and to give us their ideas."

For more information on upcoming meetings, contact Sandra Purdy at 306-788-2018 or Nadine Stielow at 780-998-0481.

Saskatoons boast a fibre content twice that of apples or blueberries and a higher anti-oxidant level than blueberries. In Western Canada, there are currently about 1,295 hectares producing close to two million kilograms of berries on almost 900 farms.

The Saskatchewan government is taking steps to deal with a growing problem on Saskatchewan farms. Coyotes have been killing more livestock recently -- from sheep to cattle -- and the province is now offering a bounty on each coyote killed.

"Many Saskatchewan farmers and ranchers are struggling to protect their livestock from coyotes," says Saskatchewan Agriculture Minister Bob Bjornerud.

Twenty dollars is being offered per coyote killed and hunters must submit a declaration form to the ministry of agriculture to receive compensation. Rural municipalities will be involved in the verification of the coyote kills.

Response to the program from livestock groups and rural associations has been favourable.

"We appreciate the provincial government has recognized this problem and has introduced this new program. In many areas of the province livestock producers have been experiencing losses due to the high coyote populations," says David Marit, president of the Saskatchewan Association of Rural Municipalities.

"The SCA applauds this step to assist producers in alleviating predation against livestock," says Ryan Thompson of the Saskatchewan Cattlemen's Association.

The Saskatchewan Sheep Breeders Association is also happy with the coyote control program.

"It's good to see government taking action to try and solve this problem," says board member Martin Catto.

The Saskatchewan Coyote Control program is being tried as a pilot project and will be operated until March 31, 2010. At that point the provincial government will review the results and determine whether it should be extended.

A familiar household herb is poised to become a money-making crop for Canadian agriculture producers.

Quebec-based Laboratoire M2 Inc. has developed a commercial disinfectant made from thyme. They claim the product to be biodegradable, non-toxic and non-corrosive with antibacterial, antiviral and anti-fungal properties.

Farmers near the proposed Laboratoire M2 processing facility will be the first to benefit from the opportunity to grow the herb on a commercial scale. Thyme is usually grown in small amounts for specific buyers. Laboratoire M2 expects that in five years they'll be buying $3.6 million of thyme for their processing facility.

According to one food development specialist in Manitoba, in order to maximize the amount of oil that can be extracted from the thyme leaves, processing must be done as soon as possible after harvesting. Shipping freshly harvested thyme from province to province would require climate-controlled trucks. That means even though soil conditions and climate may support a healthy thyme crop in agricultural areas outside of Quebec, long distance hauling isn't economically viable.

There are other obstacles to developing thyme as an agricultural crop. Not all varieties of thyme are optimum for thyme oil production. Labatoire M2 will collaborate with producers and AAFC in its quest to find the variety that has the characteristics best suited to the growing environment and the efficient production of the commercial cleaning product.

Prior to Laboratoire M2 marketing to national and international agricultural and food processing industries, it must first secure a patent for the product's use in agricultural and food industries, meet regulatory requirements for the various markets, and purchase equipment for the processing facility. The company has received $837,494 from the Agriculture and Agri-Foods Canada Agri-Opportunities program and Economic Development Canada to help commercialize the product.