Voluntary Report - public distribution

**Date:** 9/16/2005

**GAIN Report Number:** CA5064

CA5064

**Canada**

**Agricultural Situation**

**This Week in Canadian Agriculture, Issue 31**

**2005**

**Approved by:**

![](media/image1.wmf)Gary C. Groves

U.S. Embassy

**Prepared by:**

George Myles and Christina Patterson

**Report Highlights:**

\* Anti-Dumping Duties on U.S. Potatoes Renewed Again \* Workplan to
Facilitate Development of Protocol for Ya Pears From China \* Stats
Canada Releases July Grain Stock Numbers \* Crop Update \* Ottawa
Refuses to Pay CWB Legal Bills

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

This Week in Canadian Agriculture is a weekly review of Canadian
agricultural industry developments of interest to the U.S. agricultural
community. The issues summarized in this report cover a wide range of
subject matter obtained from Canadian press reports, government press
releases, and host country agricultural officials and representatives.

*Disclaimer*: Any press report summaries in this report are included to
bring U.S. readership closer to the pulse of Canadian developments in
agriculture. In no way do the views and opinions of these sources
reflect USDA's, the U.S. Embassy's, or any other U.S. Government
agency's point of view or official policy.

**ANTI-DUMPING DUTIES ON U.S. POTATOES RENEWED AGAIN:** U.S. exports of
fresh potatoes into the province of British Columbia have faced
anti-dumping duties for more than twenty years and following a review of
the case, the Canadian International Trade Tribunal (CITT) determined
this week that the anti-dumping order should again be renewed. Under
Canadian law, anti-dumping and countervailing safeguard measures expire
after five years unless renewed. The action by the CITT marks the fourth
time that the dumping order has been renewed since duties were first
applied in 1984. The CITT concluded that a rescission of the order would
likely result in injury to the potato growers of British Columbia.
Anti-dumping duties do not apply to imports from the U.S. during the
period May 1 to July 31 of each year and this time around the CITT
included an amendment to exclude from the order, imports of U.S. red
potatoes, yellow potatoes, and exotic potato varieties, and white and
russet potatoes imported in 50 lb. cartons in the following count-sizes:
40, 50, 60, 70, and 80. The CITT granted the exemption on the specialty
potatoes on the basis that they are more highly valued than white and
russet potatoes and that their import price was generally higher than
the "normal values" (determined by the Canadian Border Services Agency).
For the "count-size" potatoes, the CITT noted a similar pattern to
import prices. The full document containing the CITT's statement of
reasons is available at www.citt.gc.ca

**WORKPLAN TO FACILITATE DEVELOPMENT OF PROTOCOL FOR YA PEARS FROM
CHINA:** Following discussions with Chinese President Hu Jintao in
Ottawa last week, Canada's Prime Minister announced that Canada and
China had agreed on a workplan to develop a protocol for imports of Ya
pears from China. It was one of seven bilateral agreements signed with
China across economic sectors. According to the Canadian Food Inspection
Agency, a Quality Management System will be developed and and an on-site
audit of Chinese Ya pear operations will be undertaken later this year
to ensure the safeness of Ya pears exported to Canada. Chinese Ya pear
exports to Canada are currently under suspension due to repeated
interceptions of a quarantine pest.

**STATS CANADA RELEASES JULY GRAIN STOCK NUMBERS**: According to
Statistics Canada, total grain and oilseed stocks of both on-farm and
commercial inventories continued to be above 10-year averages. Total
stocks of wheat increased to 7.9 million metric tons (MMT), which is
31.4 percent higher than in 2004. Despite the 40.9 percent increase in
durum stocks, supplies of high quality durum are tight. Total barley
stocks jumped 66 percent from 2004 levels to 3.5 MMT, which is well
above the five-year average of 2.2 MMT. Low prices and large supplies of
poor quality barley and wheat from last year's crop are the two major
contributors to the increase in stocks. Total canola stocks are up 1.0
MMT from the 2004 level to 1.6 MMT. This places total canola stocks
above the 10-year average of 913,000 tons. Total oat stocks increased to
988,000 tons, 25.4 percent higher than in 2004. Large stocks at the
beginning of the 2004/2005 crop year combined with good production
resulted in the large oat supplies. Higher on-farm stocks in Quebec and
Ontario contributed to an increase in total corn stocks in 2005 to 5.3
MMT compared to 4.9 MMT in 2004. Flaxseed was the only crop to buck the
trend, with stocks dropping to 30,000 tons, down from 93,000 in 2004.
Poor harvest in 2004 combined with strong deliveries due to higher
prices resulted in the decline.

**CROP UPDATE**: According to Saskatchewan's provincial department of
Agriculture, poor weather conditions have continued to delay harvest and
impact the quality of the crop still in the field. Three days of rain
resulted in some areas of the province receiving anywhere between 2.2 to
3.75 inches of rain. Other areas were impacted by strong winds and hail
from storms that passed through. Approximately 34 percent of the crop
has been combined and another 37 percent is lying in swath or is ready
to straight combine. The five-year average is 46 percent combined and 20
percent lying in swath or ready to straight combine. Crop quality is
being downgraded with each rain, as farmers are finding bleaching,
staining, sprouting, mould and mildew. Lodging and soft fields are also
expected to impact harvesting. Saskatchewan was looking at a record crop
this year, but the weather is putting that in peril. Seeding of fall
crops is underway. According to Manitoba's department of Agriculture,
harvesting is progressing, but quality of the crops is poor in many
areas. In the *Southwest* region, harvesting of cereal crops is 40-50
percent completed, while canola is only 30 percent done. Wheat yields
are better than expected and grading #1 and #2. Barley is yielding
between 35-75 bu/ac, but bushel weights have been average to below
average. Canola is yielding better than expected, but later-seeded
fields may not produce as well. Oat yields and bushel weights are poor.
In the *Northwest* region, wheat and barley are 90 percent swathed and
55 percent combined. Wheat yields are in the range of 30-55 bu/ac and
grades are mostly #1 and #2. Barley yields range from 30-70 bu/ac and
good quality oats are yielding up to 125 bu/ac. Canola is 85 percent
swathed and 45 percent combined, with green seed counts low. In the
*Central* region, harvest has progressed quickly. Wheat yields range
from 5-50 bu/ac throughout the region. Fusarium has resulted grades
being mostly #2. Oat yields are below average. Winter wheat and fall rye
are being seeded. In the *Eastern* region, winter wheat yields ranged
from 15-40 bu/ac and quality was below average. Spring cereals are 100
percent combined. Canola is 90 percent combined. Alberta also received
the heavy rains seen in Saskatchewan. Some areas also experienced snow.
This has impacted harvest in that province. According to Ontario's
provincial department of Agriculture, corn maturity is ahead of normal
due to high heat units and sufficient moisture (in some areas). As a
result the crop is drying down earlier than normal. The soybean crop is
also maturing quickly, with generally good pod set where timely rains
were received. Harvest of soybeans has begun in some areas of the
province.

**OTTAWA REFUSES TO PAY CWB LEGAL BILLS**: According to the *Saskatoon
StarPhoenix*, the government of Canada has turned down the Canadian
Wheat Board's (CWB) request for money to defray the cost of legal bills,
which have arisen from trade disputes with the United States. In June,
the CWB requested \$15 million (CDN) from federal government to cover
legal bills it has paid since 1990. The request came as a result of the
federal government's announcement early this year that it would provide
\$20 million (CDN) to the softwood lumber industry to offset its
trade-related legal expenses. The Minister of International Trade
indicated that the payment to the softwood lumber industry was a
one-time exception to the rule. The CWB felt it should have received
financial assistance to defray its legal costs.

Find FAS on the World Wide Web:

Visit our headquarters' home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/) for a complete
listing of FAS' worldwide agricultural reporting.

# 

# Recent Reports from FAS/Ottawa: 

+----------------+---------------------------------------+------------+
| Report Number  | Title of Report                       | Date       |
+----------------+---------------------------------------+------------+
| CA5063         | Deciduous Fruit Annual                | 9/15/2005  |
+----------------+---------------------------------------+------------+
| CA5061         | Kosher Report                         | 9/6/2005   |
+----------------+---------------------------------------+------------+
| CA5060         | Canada Connect Matchmaker Program     | 9/1/2005   |
+----------------+---------------------------------------+------------+
| CA5059         | ## Poultry Annual                     | 9/12/2005  |
+----------------+---------------------------------------+------------+
| CA5058         | This Week in Canadian Agriculture,    | 9/1/2005   |
|                | Issue 30                              |            |
+----------------+---------------------------------------+------------+
| CA5057         | This Week in Canadian Agriculture,    | 8/26/2005  |
|                | Issue 29                              |            |
+----------------+---------------------------------------+------------+
| CA5056         | ## Livestock Annual                   | 8/26/2005  |
+----------------+---------------------------------------+------------+

VISIT OUR WEBSITE: The FAS/Ottawa website is now accessible through the
U.S. Embassy homepage. To view the website, log onto
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on Embassy Ottawa offices, then Foreign Agricultural Service. The
FAS/Ottawa office can be reached via e-mail at: <agottawa@usda.gov>