South Korea is resuming imports of Canadian beef after an eight-year ban.

South Korean media, including the The Korean Herald, say the government made the announcement today in Seoul.

All Canadian beef imports had been suspended because of Canada's first case of bovine spongiform encephalopathy, commonly known as Mad Cow disease.

The South Korean government says local livestock distributors will be able to sell Canadian meat from cows younger than 30 months old starting this weekend.

Agriculture Minister Gerry Ritz is expected to confirm the details at a news conference today in Spruce Grove, Alberta.

In late December, Ritz had said South Korea has taken a "big step" towards allowing imports of Canadian beef to resume.

After years of emphasizing that there is no scientific basis for the ban, Canada had sought a World Trade Organization panel to review the ban on Canadian beef.

Last June, Ottawa and Seoul agreed on a process to restore access by the end of 2011, prompting Canada to formally request a suspension of the WTO proceedings.

South Korea was the last major Asian market to ban Canadian beef.

Canada Beef Inc., the marketing division of the Canadian Cattlemen's Association, had said re-opening the market could be worth $30 million to Canadian producers by 2015.

Prior to the ban, South Korea was Canada's fourth-largest beef market.

Weed scientists at Agriculture and Agri-Food Canada have confirmed the first case of a glyphosate-resistant weed in Western Canada.

The conclusions are based on samples of kochia from three fields from three different producers in Southern Alberta.

Dr. Robert Blackshaw, a researcher with AAFC in Lethbridge, says the samples were collected from chemical fallow fields displaying reduced kochia control despite multiple applications. Generic glyphosates are commonly used as many as three times a season for weed control.

Blackshaw notes that resistance in Roundup Ready corn and soybeans has been known in the United States for several years, but these cases do not appear to have developed in a Roundup Ready cropping system.

He says, in the past, the message was often that Roundup Ready crops were contributing to the problem of resistance, but this example shows it is also happening in other situations where no Roundup Ready crops are involved.

AAFC says it will continue research in the area in 2012, in addition to ongoing collaboration with the University of Alberta and Monsanto to find specific solutions to address the problem of glyphosate-resistant kochia.

In conjunction with AAFC and the university, Monsanto has also developed an online weed resistance risk assessment tool for Western Canadian farmers. The tool can be found at www.weedtool.com. Through a series of questions, the tool helps producers assess their risk of developing glyphosate-resistant weeds and provides strategies to manage those risks.

Blackshaw says it is not a total surprise that the resistance has been found in Western Canada. He admits it is a concern, but believes the problem should be manageable with good management practices, although they may come at an increased cost.

Glyphosate resistance has been found in southwestern Ontario in two weed species – giant ragweed in 2009 and Canada fleabane in 2011. Glyphosate-resistant kochia has also been confirmed in Kansas, Colorado and Nebraska, while investigations continue in North and South Dakota and Montana.

Producers who suspect they may have a problem with glyphosate resistance are encouraged to contact Blackshaw at 403-317-2268.

The United States has been given a two-month deadline extension for an appeal of the World Trade Organization ruling against its country of origin food labelling rule.

The U.S. now has until March 23 to file an appeal against the decision. The previous deadline was Jan. 18.

A Nov. 18 WTO dispute panel report said COOL violates international trade rules.

Canada, Mexico and the U.S. requested the extension "to take into the account the current workload of the Appellate Body," the WTO said in a statement.

Canada and Mexico previously challenged the controversial rule, claiming it unfairly discriminates against foreign livestock sold into the U.S.

The U.S. is expected to advance the same arguments it made during panel hearings last year, namely that COOL only informs its consumers where their food comes from and does not cause economic harm to other countries.

But the Americans may have a hard time convincing the appeal body because the original panel firmly rejected those arguments, says John Masswohl, government and international relations director for the Canadian Cattlemen’s Association.

"The COOL ruling was very clear; it was very strong and it basically shot down everything they said," Masswohl says.

Implemented in September 2008, COOL requires U.S. retailers to label various foods as to the country in which they originate. That includes meat from animals sold into the U.S.

As a result, U.S. packers and wholesalers must segregate imported livestock to comply with the rule, thus increasing their operating costs. Many U.S. packing plants do not buy Canadian cattle and hogs to avoid the hassle. Those who continue to import often discount prices to compensate for the extra expense.

In its decision, the WTO dispute panel found that COOL violates U.S. international trade obligations by according "less favourable treatment to Canadian cattle and hogs than to like domestic products."

The ruling, if upheld, means the U.S. will have to modify COOL so as not to discriminate against imported livestock.

The CCA calls the impact of COOL on the Canadian cattle industry substantial. It recently released an economic impact analysis showing COOL helped widen the price difference between Canadian and U.S. fed cattle by $4 per hundredweight or $48 for a 1,200 pound steer.

If COOL continues, that gap will widen as the North American cattle herd rebuilds and packers and feedlots will not have to bid as aggressively for cattle, Masswohl says.

"When the cattle cycle swings around, as we know it always does, the impact will be bigger again if this doesn’t get resolved."

An unusual lack of snow across the Prairies has raised concerns about a possible drought this spring but weather experts say it’s too soon to worry.

Winter still has a long way to go and earlier predictions for above-average snowfall this year could still come true, analysts say.

"We have three more months of winter and the long-range seasonal forecasts we’re seeing, although they’re not 100 per cent by any stretch, are still calling for an above-normal snowy winter," says Trevor Hadwen, an Agriculture and Agri-Food Canada agro-climate specialist in Regina.

As of early January, much of Western Canada had experienced weather more akin to autumn than winter. Hadwen says average December temperatures were five to eight degrees above normal across much of the West. Precipitation since Nov. 1 was below 40 per cent of normal in most regions from southern Manitoba up to Edmonton.

"This is really weird weather we’re having," says Mike Wroblewski, a Manitoba Agriculture, Food and Rural Initiatives meteorologist who has been watching the weather for 25 years.

The unusually warm, dry conditions defy earlier forecasts calling for a cold, snowy winter because of a rising La Niña weather phenomenon. So far, the reverse has been true.

High winds, bare fields and dry soil resulting from a late fall helped fan grass fires in southern Alberta and sparked fears about soil erosion this winter.

"It’s disconcerting to see bare soil across most of the Prairies right now when we should have at least a little bit of snow cover," says Bruce Burnett, Canadian Wheat Board weather and market analysis director. "Hopefully, this La Niña will provide that."

Hadwen says the current La Niña, originally predicted last fall, is weak, unlike last year when a strong La Niña produced cold, wet conditions lasting well into spring.

But Environment Canada is still calling for above-normal precipitation in the West for the next three months. This suggests that a fairly typical La Niña winter with more snow and cooler temperatures is still possible, Hadwen says.

"Anything can happen. It’s certainly not time to panic and be really concerned."

Burnett says computer models show soil moisture heading into freeze-up was below normal in the western Prairies and a bit better in eastern regions.

But most reservoirs and dugouts still hold adequate water supplies for cattle, Hadwen says.

Agricultural plastic waste is an environmental concern for many farmers. CleanFARMS, a national, industry-led stewardship organization, is attempting to alleviate that pressure in two Canadian provinces in a “green” way.

In Ontario, CleanFARMS is piloting an agricultural plastic waste recycling program in the Lake Simcoe watershed, and will involve the use of bale wrap.
 
“This pilot project will lay the groundwork for a comprehensive program to responsibly manage all agricultural waste plastic across the province,” says Barry Friesen, general manager of CleanFARMS.
 
“Farmers don’t want to burn waste or send it to landfills, but it’s difficult for them to be good stewards when there aren’t programs in place to help them,” says Friesen. “Where there are programs in place, the participation rate from farmers is tremendous.”

Ontario farmers generate more than 14,000 tonnes of waste on their farms each year. Some stewardship programs are in place for certain agricultural waste products, but for many products, no recycling options exist.
 
The pilot program in Lake Simcoe is being sponsored by the Ontario Ministry of Agriculture, Food and Rural Affairs.
 
CleanFARMS has a long history of environmental farm programs in Ontario. Its empty pesticide container recycling program has been in operation since 1989. Ten years later, its now-obsolete pesticide collection program began.

Saskatchewan is hoping to capitalize on CleanFARMS’ experience in operating those programs. To that end, the Saskatchewan government is working with CleanFARMS to reduce the agriculture industry’s environmental footprint by reducing waste from grain bags, bale wrap and twine.

“Saskatchewan is an innovative province that is well positioned to become a leader in agricultural plastics recycling,” says Friesen. “In many cases, the technology is already in place.”

Saskatchewan is in the final stages of completing a one-year pilot program, which was announced in March 2011. Plastic grain bags are rolled with a special machine and collected at eight locations. The bags are shipped to Alberta and eventually turned into material to make garbage bags.

The only cost to the producer is their time and transportation to the collection site. The federal and provincial governments contributed $160,000 to the project. The Provincial Council of ADD Boards administered the program and contributed another $50,000.

There are six primary collections sites at Prince Albert, Kelvington, Estevan, Abbey, Unity and Viscount. The Moose Jaw River Watershed Stewards, a non-profit organization consisting of local towns, villages and rural municipalities, have two collection sites at Milestone and Moose Jaw.

Statistics have not been released for the amount of plastic collected, but PCAB executive director Tamara Weir-Shields says comments from participating producers have been very positive.

“We did not know what to expect,” says Weir-Shields. “Most of the bags so far have been returned in the last quarter of 2011. Unity and Abbey have the highest numbers, but all depots have been successful considering the long fall and excessive moisture in some areas.”

Discussions are now underway to develop a long-term program to recycle on-farm plastic waste in Saskatchewan. It is generally agreed that a permanent program will require more collection sites.

“The key thing is having great accessibility,” says McLean. “We have already proven through the empty pesticide container program that farmers are ready and willing to participate, as long as we give them the tools to do the job.”

He also says research reveals the most successful programs have government legislation that mandate participation, such as those used to manage tires, paint and electronics.

A meeting was held with industry stakeholders in Saskatoon this week in advance of CleanFARMS proposing a program to the Ministry of Environment by the end of March.

“It’s baby steps right now, but there is certainly no reason in the world that we couldn’t have a permanent program for these products in a year or two,” says McLean.

Alberta and Manitoba will be invited to participate in the discussions as well, McLean says, because it would be nice to have a three-province solution.

The federal government is planning to test elk for tuberculosis in a Manitoba national park amid fears the disease could infect cattle herds.

Parks Canada has issued a request for proposals for tests in Riding Mountain National Park citing a “serious threat” to the livestock industry. The park in western Manitoba is home to just over 2,000 elk and officials estimate about four per cent are infected with the contagious respiratory illness.

“However, being present in a wild ungulate population, that is transboundary and therefore migrates out of the park and onto adjacent lands, creates a serious threat to the livestock industry,” says the request obtained by The Canadian Press.

The request says there are about 50,000 cows on 700 farms in the area that could be threatened by the contagious disease. Ken Kingdon, co-ordinator of the wildlife health program at Riding Mountain Park, says elk are tested and then tracked using a GPS collar. Infected elk are recaptured and destroyed.

The disease has lingered for decades but Kingdon says all the animals which have tested positive in recent years have been older elk, suggesting that the next generation doesn't seem to be as susceptible.

Cam Dahl, general manager of the Manitoba Beef Producers, says farmers need a much more aggressive strategy.

Dahl says battling tuberculosis for over 20 years has taken a toll. The constant testing of cattle herds is expensive – $14 a head - and is now borne entirely by the farmer, Dahl says. One infected cow can mean an entire herd needs to be destroyed and can lead to difficulty selling beef in some markets, he notes.

It's not enough to test the elk herd periodically, says Dahl, who suggested all levels of government have to come together and appoint a co-ordinator who can work across all jurisdictions to eradicate the disease.

He points out other jurisdictions, such as Minnesota, have managed to stamp out the disease.

“The status quo is not something that is sustainable and not something that we would like to see continue,” he says. “Producers in that area do need to see the disease eradicated.”

In addition to the federal effort, provincial officials say they are also doing what they can. Manitoba Conservation officials say hunters are required to provide biological samples to keep tabs on diseased animals outside of the national park.

Dale Douma, a veterinarian with Manitoba Agriculture, Food and Rural Initiatives, says farmers themselves have a role to play in curbing TB.

Tuberculosis is spread primarily through shared hay bales if they are not protected from wild elk. That's why many provincial programs are aimed at keeping elk from interacting with livestock using proper fencing and dogs, Douma says.

“That basically prevents or reduces the number of wildlife that come on to your property and then, if they do come on to your property, hopefully that feed is being held behind a wildlife-proof fence,” he says.

Could the death knell soon be sounding for the beef industry in Canada’s smallest province?

While it is a scenario those within the industry are reluctant to contemplate, there is widespread fear that one of the key pieces of infrastructure needed for long-term survival may soon be on the chopping block.

Atlantic Beef Products Inc., located in the PEI port community of Borden-Carleton, is the only federally inspected plant in the Atlantic region. While it accepts cattle from all three Maritime provinces, over 80 per cent of its production comes from PEI.

Conceived in the wake of the BSE situation, the plant has been constantly fighting an uphill financial battle since it opened in 2005. At one time, the losses were in the range of $500,000 but by the spring of 2011, there was a general feeling the plant had turned a corner.

The province budgeted $1.3 million to cover losses and there were predictions that 2012 could be the year the plant moved into the black. However, the losses last year were actually closer to $3 million — mostly because a rise in beef prices across North America meant the plant was paying more for its raw product. As part of its budgetary process, the province is looking at what level of funding, if any, it will provide to the operation in the fiscal year that begins April 1.

The higher prices are certainly something Peter Verleun is not going to apologize for. The president of the PEI Cattle Producers says Island producers, like their counterparts across the country, have faced a number of financial challenges of their own over the last five years.

“We need that higher return, but at the same time we have a vested interest in making sure the plant remains viable,” Verleun says.

The plant president couldn’t agree more. “This can’t be an either/or proposition,” Mike Nabuurs says. “Obviously, we both need to survive and thrive for the industry to have a viable future. I am confident we are on the right track but we are not where we need to be yet.”

Meanwhile, both of the general farm organizations in the province are worried the plant closure would result in a significant drop in the number of beef producers. After the Island’s only federally inspected hog plant closed in 2008, the number of producers dropped from 100 to less than 30.

“That is certainly very worrisome,” says John Jamieson, executive director of the PEI Federation of Agriculture. “We already lost a significant number of beef producers when prices were low.”

“If the plant were allowed to close, we would be going down the same road as the hog plant,” says Edith Ling, the women’s district director of the National Farmers Union on PEI and an organic beef producer. “There is no reason to believe the outcome would be any different.”

Potato producers in New Brunswick affected by cold and wet weather in 2011 now have more time to repay their advances under the Advance Payments Program.

Following an announcement of a Stay of Default by Tobique-Mactaquac Member of Parliament Mike Allen on Jan. 13, potato producers can transfer their outstanding 2011 advances to the 2012 production period and avoid default.

The Government of Canada will continue to pay interest on the interest-free portion of producers’ outstanding advances until Dec. 31.

“New Brunswick potato producers have worked hard to recover from this year’s cold and wet conditions which have severely reduced their crop yields and caused high storage losses,” Member of Parliament Allen said in a release.

“Potatoes New Brunswick asked that producers be granted more time to meet their financial obligations, and we’re pleased to provide it as we work together to manage through what has been, and continues to be, a very difficult time for the industry.”

The APP provides producers with a cash advance on the value of their agricultural products during a specified period. The short-term loans improve cash flow throughout the year and help crop and livestock producers meet their financial obligations and market their products when market conditions are favourable.

The Stay of Default came into effect on Dec. 22, 2011. Producers who received a 2011-2012 APP advance, and may be in an overpayment position, should contact Potatoes NB for more information.

The outlook for Canadian pulse crop markets was a centrepiece subject for last week’s annual Western Canada Crop Production Show in Saskatoon Jan. 9 to 12. As always, there was a very strong turnout for this event, and I presented on the pea market outlook for a crowd estimated at about 1,000 people. Here are the highlights.

Field peas
Tight Canadian pea supplies continue to underpin market prices, but global macro-economic concerns will likely limit spot cash field pea bids from strengthening much above their current levels of about $8 to $8.50/bu on edible yellows and $8.50 to $9/bu on greens.

Also, while the latest Statistics Canada field pea production estimate pegs Canadian field pea production at only 2.1 million tonnes (short 2011 crop), there is a sense in the trade that the number continues to be understated. This means inventory may be larger than is currently being reported.

On the demand side, sales to India typically account for about half or better of all Canadian pea exports. Buying interest from that key market has slowed in recent weeks and months following a period of strong export demand. A sharp depreciation of India's currency (rupee) in relation to both the US and Canadian dollars has reduced the buying power of end users there.

Also linked to the slowdown in India buying are global macro-economic worries, which have reduced credit availability, particularly amongst smaller end-users. Many Indian buyers rely on financing arrangements secured through European banks, but credit availability in recent times has tightened.

The ongoing challenge associated with currency and credit woes will continue to persist. And, despite knowledge that inventory and forward coverage is running low, demand could remain handcuffed as a result. This will keep demand operating only on a hand-to-mouth basis going forward.

On the production side, the Indian government has introduced financial incentives domestically, which aim to increase their own pulse production. India is already the largest net pulse producer/consumer of the world. But admittedly, pulse acres planted for the rabi crop (winter crop) in that country are down this year due to dryness.

Looking ahead to 2012 Canadian crop prospects, edible peas are pencilling out at about mid-pack in terms of profitability per acre relative to other cropping options. This is based on new crop, fall delivered cash bids that are currently available in the market. But with new crop bids well below spot market valuation, producers are likely inclined to show some patience before forward pricing any new crop production at this time.

Lentils
Early indications are for Western Canadian farmers to plant fewer lentil acres in 2012 compared to last year. While the smaller new crop acreage base could lead to an eventual improvement in price, global macro-economic issues here too continue to limit any near-term upside market potential for lentils.

If current depressed bids for red lentils in particular persist into the spring, there will be a major contraction of 2012 red lentil production area. A similar reduction in production globally would see prices stabilize around their current 16 to 17 cents per pound range over the next few months.

Forecasted total lentil acres of the red and green varieties in the key producing province of Saskatchewan in 2012 is currently pegged at about 2.0 million, compared with 2.4 million acres in 2011. The focus on reducing acres will be biased on reds, while greens may hold the line or perhaps even increase slightly in the small green lentil varieties.

From a pricing standpoint, red lentils may eventually move up to as high as 20 cents per pound, while green lentils will likely drift lower from current levels into the 20 to 24 cents per pound area.

Potentially bearish factors to watch in the lentil market going forward will be the spill-over effect from general softness in grain and oilseed markets, the European debt crisis and weakening currencies in many major import countries. A large Australian red lentil crop could also weigh on values, while Russia is expected to be a larger competitor on green lentils.

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.