It's beginning to look a lot like Christmas -- and that's got Canadian turkey producers feeling festive over an anticipated jump in seasonal sales. 

"A lot of retailers use turkeys as loss leaders at this time of year," says Phil Boyd, executive director of the Turkey Farmers of Canada, the group that has represented the country's 550 registered producers since the 1970s. "That always creates a good bump in unit sales." 

According to Boyd, around 4.5 million birds will be bought for traditional Christmas feasts across Canada this month. Another three million turkeys were bought during the September to October Thanksgiving period. Together, the two holidays account for about 70 per cent of annual whole bird sales in Canada. 

Though the final numbers aren't yet known, Boyd says his organization expects overall sales to be higher this year than in 2009. Last year, total quota-controlled turkey production (fresh and frozen) was 165.3 million kilograms, with a total farm gate value of $359.1 million. 

But this year Boyd says "domestic disappearance" has reached a record level. Domestic disappearance is the number of birds estimated to have moved out of the system, mostly to grocery stores and food service outlets like the Subway chain, by subtracting exports and end stocks from total supply. 

"It's 38 million kilograms, up from 33.4 million last year," Boyd says. "That suggests we've sold a lot more units." 

But he adds the increase in sales won't translate into a big boost for farm gate revenues due to the relatively low retail price of around $2.18 per kilogram. 

According to Boyd, some producers are still feeling the effects of steep feed price increases in 2008. The recession also slowed demand from delis and the food service industry. 

Boyd is confident, however, that producers' bottom lines will improve in 2011. 

"Everything indicates that we're going to see a healthier price and a stronger market for turkey in 2011," he says. "Most consumers now know that turkey is a great source of protein."

In North America, excess and the Christmas holidays could be considered practically synonymous. Yet, here’s a sobering thought: the amount Canadians waste on food each year is now estimated at $27 billion, a figure so big that it equals the total amount spent every year in restaurants. 

These findings come from a hard-hitting report from the George Morris Centre, a Guelph-based agri-food think tank. The report, Food Waste in Canada, notes that like the rest of the world, Canada invests enormous resources in seeking ways to feed a growing population through increased production. But, it says, far fewer resources are invested in making more effective use of the food already produced. 

Food that finds its way to landfill and composting creates unnecessarily high levels of carbon and methane. More effectively managing the food already being produced would significantly benefit our economy and the environment, it says. 

In the report, farmers are fingered for being partly to blame, owing to their involvement in what the authors call an inefficient value chain. 

The report says risk management programs and varied marketing regulations alter farmers’ needs to respond to market signals. That lessens their needs to communicate meaningfully with downstream members of the value chain, or to ensure that their operations reflect customer and consumer requirements. 

“Many continue producing what they’ve always produced, in the same way they’ve always produced it,” it says. “At the same time, many producers who wish to change how they produce and market their products are prevented or discouraged from doing so by less progressive elements of the current system, or current policies and legislation.” 

Food processing takes a hit, too. For example, the centre claims inefficient meat processing -- inconsistency in carcass composition and production systems -- adds 10 per cent to the end price of meat. When it comes to fruit, it says 75 per cent of raspberries and one-quarter of all Ontario peaches can be lost by the time they get to retailers. 

But the centre lays most of the blame for food waste at the feet of consumers. In fact, it says, just over half of the $27 billion in food waste originates from food thrown away in Canadian homes, mainly from overcooking or preparing too much, not using the food in time and a lack of confidence to use leftovers. Refrigerated storage food is the biggest culprit, it says, citing fresh or raw meat and fish, ready meals, dairy products, fruit and vegetables and pre-prepared foods. 

Profitability would increase by reducing waste, according to the report, and the authors call on all parts of the value chain to be more efficient. 

“Clear opportunities exist for Canadian agri-food chains to achieve competitive advantage through working together more effectively, particularly as the economy and the environment are on the minds of almost all consumers,” they say. “Achieving these outcomes relies on effective leadership at the federal and provincial levels of government, and industry organizations, as well as on business managers proactively responding to the opportunities that undoubtedly exist.”

Single desk supporters continue to have a majority on the Canadian Wheat Board. 

Farmers in four of the five odd-numbered districts voted in favour of candidates who support the CWB's export of wheat, durum and barley sales. 

The closest race was in northern Alberta. Incumbent Henry Vos from Fairview was re-elected in District 1 by a slim 31-vote margin. Vos is the only one of the five directors supporting the concept of market choice, which would allow farmers to sell their own wheat, durum and malting barley.  

The former president of the National Farmers Union is the new District 3 director. Stewart Wells from Swift Current will be the representative for southwest Saskatchewan and southeast Alberta. Wells defeated Brian Otto, president of the Western Barley Growers Association by more than 300 votes. 

CWB Chair Allen Oberg of Forrestburg, Alta. was re-elected in District 5, which covers northwest Saskatchewan and northeast Alberta.   

"We are going to continue along the same lines, trying to add value for farmers in everything we do and certainly do all we can to meet their business needs," he says. 

Kyle Korneychuk from Pelly was re-elected in District 7, which includes northeast and east-central Saskatchewan. 

John Sandborn of Benito, Man. was the winner in District 9. He will represent farmers in western Manitoba and those along the border in eastern Saskatchewan. 

Just over 41 per cent of 28,481 eligible producers returned their mail-in ballots. That's below the 52 per cent who voted in the last election. Terry Youzwa from Nipawin, who ran unsuccessfully in District 7, believes the lower turnout hurt candidates who oppose the single desk selling system. 

"There seems to be a lot of apathy across Western Canada," he says. "Farmers don't seem to believe voting for the Wheat Board matters and that they (directors) can make changes within."  

CWB directors are elected to four year terms. Elections are held every two years, alternating between odd- and even-numbered districts.    

There are 15 CWB directors. Farmers elect 10 directors and the other five are appointed by the federal government.   

The Canadian Food Inspection Agency and Agriculture and Agri-Food Canada have launched a pilot project intended to help small and medium-sized businesses meet federal meat hygiene rules for interprovincial trade.

The federal-provincial-territorial interprovincial meat trade initiative will investigate and help provincial meat processors move their product across the country while maintaining Canada's high federal food safety standards. 

Currently, the interprovincial sale of meat is inhibited by standards that vary between Canada’s provinces and territories. While all meat-processing facilities follow high hygiene standards based on the federal Food and Drug Act, each province and territory has meat-inspection legislation setting standards for meat products traded within their own jurisdictions. As a result, producers and processors are often unable to sell to customers just kilometres away because of a provincial border. 

At the agriculture ministers' meeting in July, federal, provincial and territorial governments discussed ways of eliminating barriers to interprovincial trade caused by differences in meat-processing regulations. This investment of up to $3 million for a series of pilot projects is the first step. 

The intention is to have teams conducting regular visits to participating plants beginning in February, “to collect information to see what works, and to see what doesn’t,” says Dr. Richard Arsenault, the director of the meat programs division for CFIA. He explains the existing regulations were designed for larger facilities but can be trickier to make work in smaller facilities. 

During their visits, the national meat hygiene pilot project teams will evaluate the plants’ standards to determine what would be required to meet federal meat-hygiene requirements for interprovincial trade. The next step would be to help processors achieve the national standard. 

“We have had a lot of interest with our provincial colleges answering the phones from people keen on participating,” Arsenault says. “We should have a nice representation of plants across Canada that do different things, and that will allow us to explore the widest possible set of scenarios to get our procedures right-sized for small and medium-sized businesses.” 

Dr. Arsenault says anyone interested in participating should consult the website below and contact their provincial representative for more information. The deadline for applications is Jan. 7.

http://www.inspection.gc.ca/english/fssa/meavia/interprov/interprove.shtml 

Ontario Pork has finished the process of dividing into two separate divisions. 

Now known as the Ontario Pork Universal Services and Ontario Pork Marketing Division, the change was made to comply with a directive from the Minister of Agriculture, Food and Rural Affairs for Ontario Pork to modify its marketing and governance structure. 

Ontario hog producers can now choose to sell their hogs directly to buyers or through an intermediary such as the Ontario Pork Marketing Division.   

“We had a detailed schedule for completion and have been working diligently to make it happen”, says Wilma Jeffray, chair of Ontario Pork in a news release. “Since June, our producers have been sent regular communications informing them of what was taking place and what they should be considering to get their businesses ready for this day. Due to the work we have been doing internally over the last several months, we are confident producers will make informed decisions as they begin the transition.” 

Ontario Pork has been working closely with the Ontario Farm Products Marketing Commission and the Hog Industry Advisory Committee to ensure the appropriate regulations are in place for the new environment. 

The Canola Council of Canada is urging growers to pay more attention to disease management, particularly blackleg. 

Good returns from canola compared to other crops have encouraged many growers to tighten their canola rotations and the council predicts canola could reach another record acreage in 2011. But with tighter rotations, the council points out that it sets the stage for the build up of inoculum and could select for blackleg races that are more virulent against current canola resistance genes. 

"Genetic resistance is not permanent. It is at risk of being lost if better management practices are not adopted," says Derwyn Hammond, Canola Council of Canada agronomy specialist. 

"No one would like to return to a situation where resistant varieties are unavailable and blackleg can wipe out crops, but that could happen if selection pressure from tight rotations outpaces breeding efforts." 

The council says for long-term sustainability, growing canola one year in four on a field is still the best practice. Even where disease issues are less severe and genetic resistance is still working reasonably well, trends in yield and economic returns suggest canola should not be grown more often than one year in three. 

"When growers feel they must tighten rotations, we encourage them to use blackleg management tools and knowledge to make the best of that decision," Hammond says. 

An outline of management tools and further information is available at http://www.canola-council.org/news/2226/blackleg_risk_rises_with_tight_rotations.aspx.

Nova Scotia has long been recognized as a world leader in Balsam fir Christmas tree production. Trees are exported throughout the world as well as being the popular choice for many Canadians. Researchers at the Nova Scotia Agricultural College in Truro, N.S. have discovered a key to preventing needle drop --or needle shed -- in Balsam firs.

Dr. Raj Lada, founding director and researcher at the recently established Christmas Tree Research Centre -- CRC -- at NSAC has studied needle retention in Balsam firs for the past five years. 

The Balsam fir is a popular choice for Christmas trees, however, needle shed in cut trees can happen fairly quickly, with significant losses within several weeks of being harvested and decorated. This can affect customer choices in succeeding years. 

Christmas tree growers, many of whom are located in Nova Scotia, are keen to see a solution to this problem, and have been helping to fund the CRC research. 

Matthew Wright, executive director of the Christmas Tree Council of Nova Scotia says that loss to shed is not as high as in years past because growers have improved their harvesting, storage and handling techniques. 

Some trees just drop needles through genetic predisposition, but “Dr. Lada’s work will help us identify and then produce Balsam fir with the best needle retention in the world,” he says. 

Trees less predisposed to needle drop can be used to propagate other trees with the same genetic disposition. 

Lada’s research shows needle drop is caused by ethylene gas, a hormone that plants release when stressed by various factors. It's the same gas that causes flowers to decay and fruit to brown and decompose. 

Lada and his research associates have been developing technology that regulates the triggering factors for ethylene production and its subsequent effects -- by blocking ethylene synthesis through a compound applied by watering, or by utilizing a gas that inhibits ethylene uptake by the trees. Trees subjected to his techniques have kept their needles for two to three times as long as usual, up to three months as opposed to a few weeks. 

While their research is ongoing, the researchers plan to refine their protective products, which their funding sponsors can then commercialize for use by growers, resellers and customers. 

For this year’s consumers looking for quality Christmas trees, Lada advises, “handle your trees gently, supply water every day and keep away from the heat and smoke of kitchens.” 

As well, he recommends leaving tree lights on at night, since that can also help stave off needle shed. Lada has found lights prevent respiration by trees, so they don’t lose moisture or produce ethylene like they normally would at night. Cool, energy efficient and full spectrum LED lights are particularly effective at reducing needle drop.

The new Alberta Forage Industry Network aims to create a broader voice for the estimated 30,000 forage producers across the province, says AFIN chair Doug Wray. 

With over 30 million acres of native and seeded forages, it is the largest crop by area grown in Alberta and Canada according to Wray, but "nobody is focusing on forage, especially on the research front."

Wray maintains the forage industry is getting left behind. When compared to crops like canola, where research resources focus on areas like better genetics, it means the forage industry's ability to compete is affected. 

"The industry is so diverse and scattered it tends to play second fiddle since there has been no specific organization to speak out for it," says Wray. And although it is vital to the success of livestock growers, he says it tends to get treated as a second tier industry. 

For example, much time and effort has been dedicated to adding value to the beef industry but forage has been overlooked even though beef producers depend on forage crops. 

In response to these concerns, AFIN has been launched with help from the Agricultural Research and Extension Council of Alberta, funding from the Advancing Canadian Agriculture and Agri-Food program and extensive stakeholder input.  

Wray believes an important project for the new group to consider will be sponsoring a study to quantify the value and size of the industry to help set priorities.

He predicts the ongoing reduction of the cow herd will increase the importance of forage crops for producers who need the benefit of one voice to foster communication, champion research and extension, and influence policy and practice initiatives.  

To meet these goals, AFIN is actively seeking industry members from applied research associations, businesses and individuals. As Wray points out, "those with a voice will be those who show up." 

For more information, check out the website at www.albertaforages.ca.

There’s been a buzz recently in the malt barley market with talk of new crop 2011 bids ringing up around $5.75 a bushel. That’s pretty exciting. So a grower asked me about that, and if one could expect some real improvement on what has been to date, a rather disappointing return on current marketing year malt barley. 

Old crop
In a nutshell, unfortunately, it doesn’t appear too likely we’ll see an appreciable upside to the immediate old crop price outlook. While prices are pegged at the higher end of the longer term spectrum of malt barley returns offered by the Canadian Wheat Board, they nonetheless are considered a disappointment for growers as returns for feed barley this year are quickly closing the price gap. 

The two row malt barley November pool return outlook at $253 a tonne (down $7 from the October PRO) is now only $20 a tonne above the Pool A feed barley PRO ($232 a tonne). That differs rather radically from the reports I get from our Australian colleagues who report that malt barley there trades at $100 a tonne premium to feed. 

The quick and dirty
The Canadian Wheat Board, as they would do in most years, contracted to sell a reasonably sizeable quantity of malt barley to domestic maltsters much earlier in the year, and of course at lower prices than are seen today in the offshore market. 

And as it turned out, given the influence of Mother Nature, Prairie farmers produced much less malt barley this year. While one would normally suppose that less malt barley would mean higher prices, that's not what happened in this case. That's because what limited supply that qualifies as malt quality was largely already spoken for in those earlier sales. That means the CWB has very little left to sell at current higher market prices, and not enough to result in any meaningful appreciation of the PRO. Sad but true. 

If you have uncommitted good quality malt supply, storing it for 2011-12 is making economic sense now that we are hearing of a CashPlus program coming at $5.75 a bushel, two row for September-December 2011 delivery. 

New crop
OK, that $5.75 a bushel is on the table for limited quantity and selected locations. The malt industry is now recognizing that it is going to get left behind in the looming 2011 acreage battle unless something is done. Growers are becoming increasingly disinterested in growing barley. That becomes all the more evident with Statistics Canada's estimate of total 2010 Canadian barley production, down well below trade expectations at only 7.6 million tonnes, threatening to be the smallest crop in modern history. 

The situation for the malt industry only becomes that much more alarming given the Australian harvest problems of the past two to three weeks. Australia is normally a significant producer-exporter of malt barley, but not this year.

Of course, this early new crop bid at a higher price is a slam-dunk draw for any “uncommitted” 2010 good quality malt barley production, though some pause for thought when considering signing up for new crop 2011 production. 

It’s a much higher price than is available right now certainly for old crop, but relative to alternative cropping options, $5.75 a bushel malt barley is actually no better than OK. For instance, a soft white wheat is showing about $5.50 a bushel potential for next year. On a comparative gross per acre return basis, that doesn’t make malt barley an automatic cropping option, especially with the lack of an Act of God clause amid the heightened production risk in being downgraded to feed for whatever reason. 

So there appears to be some recognition of malt barley supply problems that inspired this limited higher price offering from the malt industry. But I don’t believe this is a situation where you better jump on it now if offered. It is likely that additional programs, at least at similar price offerings, are sure to follow -- hopefully some with the inclusion of Act of God. 

If you are confident in your opportunity of attaining malt quality next year, sure, this is a good opportunity to sign on to. But one shouldn’t feel the need to be rushed into signing on to this contract offering.

Mike Jubinville of Pro Farmer Canada offers information on commodity markets and marketing strategies. Call 204-654-4290 or visit www.pfcanada.com to find out more about his services.