Parliamentary Research Branch

PRB 98-2E

BACKGROUND:  SUPPLY OF GRAINS IN CANADA

Prepared by:
Sonya Dakers, Science and Technology Division
      Jean-Denis Fréchette, Economics Division
      September 1998

Grains produced in Canada include wheat, barley, corn, oats and rye. Some oilseeds produced in Canada are canola, soybeans, flaxseed, safflower and sunflower. In Western Canada, wheat is the major crop, generally accounting for about 60% of all grains and oilseeds grown in the Prairies. About 90% of all Canadian wheat production is normally exported.

Canada produces about 7% of the world’s total supply of wheat and barley but accounts for about 20% of world exports. In recent years, farm cash receipts from wheat and barley have varied between $4 and $5 billion annually.(1)

Canada Western Red Spring (CWRS) accounts for almost 80% of total wheat production. Depending on growing and harvesting conditions, CWRS can range from high-quality, high-protein wheat to low-protein Canada feed wheat. The second most important class of wheat is Canada Western Amber Durum (CWAD). The high quality durum wheat produced in Canada is recognized worldwide and is subject to a strong demand from pasta manufacturers. In Central and Eastern Canada, winter wheats, particularly Soft White Winter, dominate production.

Canola is the cinderella crop in Western Canada; the canola area has increased from 2 million to 5.3 million hectares in the last 15 years.(2) Saskatchewan and Alberta are the largest producers of canola in Canada.

The Canadian Wheat Board (CWB) is the sole marketing agency for wheat and barley destined for export or domestic food consumption.

The CWB manages producer access to the grain handling system, in which grain companies operate primary country elevators, railways and terminal capacities. In order to obtain the appropriate supply to meet sales commitments, the CWB uses a contracting system; producers under contract may be called upon to deliver all or a portion of their commitment. A farmer who delivers wheat or barley to a primary elevator receives an initial payment for the grain, which becomes the possession of the CWB. At the end of the crop year, the CWB pays a final payment which represents all the profits generated beyond the initial payment, minus operating costs.

Feed barley and wheat can be marketed domestically through either the CWB or private grain marketing.

In Ontario, all wheat sold by producers must be marketed by the Ontario Wheat Producers’ Marketing Board (OWPMB), except for farm-to-farm sales of feed and seed wheat. Grain produced in Quebec and the Maritimes is primarily for feed used domestically and is therefore marketed by numerous grain companies.

(1) Statistics Canada, Cat. 21-603.

(2) Agriculture and Agri-Food Canada, internet site http://aceis.agr.ca, Grains and Oilseeds section.