Cereals and oilseeds review

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There has been a steady and significant annual increase in total direct feed grain purchases from farmers and grain dealers since 2003/2004. In the last complete crop year (2005/2006), about 872 000 metric tonnes of feed grains were purchased directly by feed mills.

Direct wheat purchases reached 311 000 tonnes, followed closely by barley (308 000 tonnes). There were 164 000 tonnes of corn purchased, including 128 000 tonnes of imported corn. Peas represented 50 000 tonnes, and oats 27 000 tonnes. In addition, some of these feed mills also purchased grain from licensed grain companies. Grain products were excluded from the survey.

In the August-to-December period of the current 2006/2007 crop year, total direct feed grain purchases declined marginally from the same five months a year earlier, and there were less feed grains purchased domestically. There was a surge in the purchases of imported corn by feed mills, although overall corn imports to Western Canada remained stable.

Feed wheat purchases plunged, as a result of large drops in wheat bought from Saskatchewan and, to a lesser extent, from the other Western Provinces. The quality of the wheat crop produced in 2006 was better than in the previous two years, limiting the availability of feed wheat and increasing its cost early in the crop year.

Overall, direct barley purchases were fairly stable, with a shift to more direct purchases from Saskatchewan and fewer from Manitoba. More corn was purchased from Manitoba farmers and grain dealers, the result of abundant supplies from the near-record 2006 crop.

Total direct oat purchases by feed mills rose marginally, as larger purchases from Manitoba more than offset lower purchases from the rest of the Western Provinces. In Manitoba, oat supplies were back to normal after the 2005 crop failure. The highest prices in several years reduced demand in 2006/2007.

Feed pea purchases fell 44% from the same period a year earlier, with the largest drop observed in purchases of Alberta peas. Strong demand and high prices from the food market may have encouraged farmers to deliver their peas for food instead of feed, prompting feed mills to substitute less costly inputs.

Statistics Canada surveyed feed mills in Western Canada to obtain data on direct purchases of feed grains from farmers and grain dealers by province of origin. These data represent grain deliveries in addition to the licensed deliveries currently reported by the Canadian Grain Commission. Feed lots were not included in the initial phase of this project. The purpose of this on-going, semi-annual survey is to identify the amount of grain delivered by these direct methods and to identify inter-provincial grain movement. This will lead to improvements in grain delivery data, which are important in the verification of farm stocks and production as well as in the calculation of farm cash receipts.

Definitions, data sources and methods: survey numbers, including related surveys, 3401, 3403, 3404, 3443, 3464, 3476 and 5046.

The May 2007 issue of Cereals and Oilseeds Review, Vol. 30, no. 5 (22-007-XIB, free), is now available from the Publications module of our website.

This issue contains the first "Feed grains supplement."

For more information on the "Feed grains supplement," contact Karen Gray (204-983-2856; karen.gray@statcan.gc.ca), Agriculture Division.

For more information on the Cereals and Oilseeds Review, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free 1-800-465-1991; agriculture@statcan.gc.ca), Agriculture Division.