Look beyond your standard industry sources for material as this can give you a fresh perspective and new ideas about shared challenges.

Agribusiness was a fixture in headlines of the largest media outlets in Canada in 2009. With so much focus on the highs and lows, January is a good time to reflect on the biggest new stories from the past year and consider the plan ahead for the coming seasons. Here are five of the biggest ag issues from 2009 and their implications for 2010.

1. VOLATILE COMMODITY MARKETS

With prices at their highest in 30 years in mid-June 2008, many producers went into 2009 with a bumper year behind them. Since then, prices have declined with the recession, which affected the pricing threshold for basic food items. At the same time, we have continued to see a growing need for food around the world along with increased biofuel demands. Some hope these new linkages between food and energy markets will break the downward trend in agricultural commodity prices. Meanwhile fertilizer prices have experienced some extreme fluctuations of their own.

To navigate these choppy waters, many producers have been concentrating on beefing up their marketing know-how while doing all they can to get the best yields possible. Markets may remain volatile but strategic business decisions and sound agronomic choices can help you weather the storm.

2. EXTREME WEATHER

With a record dry spring in some parts of the Prairies and relentless flooding in others, 2009 was a roller coaster of extreme weather systems. For many, a wet, cold summer stunted crop growth and caused producers to fall behind schedule, though some found relief in a warm, dry harvest. It often seemed as though what one area of the country needed desperately was what another had in excess.

Despite erratic weather conditions, many growers made out well depending on crop, agronomic choices and marketing decisions. For others, the year was simply a disappointment. While some factors — weather and commodity prices — are beyond a producer’s control, knowledge is always a powerful tool to navigate the challenges and opportunities that may come your way. The winter season is a great time to do some concerted learning: catch up your reading, consider taking a course or workshop, and reflect on what you’ve learned this past year. Look beyond your standard industry sources for material as this can give you a fresh perspective and new ideas about shared challenges.

3. TRADE

The past year was full of high profile trade issues — more fuel for top news across Canada. For example, after reports of genetically modified CDC Triffid flaxseed contaminating flax shipments to Europe in early September, Europe banned any further imports of Canadian flax. With 70 per cent of Canada’s flax exports destined for Europe, the ban caused great pressure on the flaxseed market, forcing producers to sell at much lower prices.

Then in November, China announced drastic trade restrictions

on Canadian canola. This posed a significant issue for canola producers, given the quantity of canola typically shipped to China. According to the Canola Council of Canada, our nation was the number one canola exporter to China in 2008, exporting 2.87 million tonnes worth $1.3 billion.

The past year also saw numerous news stories about the U. S.’s mandatory country-of-origin labelling (COOL) law, which requires food items to list the origin of all agricultural ingredients. The Canadian government argues it imposes “unfair and unnecessary costs” on the supply chain, reducing competitiveness and creating confusion between Canada and the U. S. This issue is still on the table as talks continue and the WTO dispute settlement board convenes to determine if the new law meets the U. S.’s trade obligations in a report due later this year.

Trade is sure to remain a hot topic in the year ahead — after all, it is essential to the agriculture industry. Canada is the

third largest exporter of agricultural products in the world. Keeping on top of trade issues is important for everyone in this industry.

4. GLOBAL FOOD SECURITY CHALLENGES

Within the past few years, food security has become a topic for discussion even at the most urban intersections of the country. Popularity of books such as “In Defense of Food” and the movie “Food Inc.” illustrate the concern and intrigue among the general public. These discussions are well warranted. With world population expanding by about two people per second, we will reach an estimated nine billion by 2050. To meet the dietary needs of these people, production will need to increase by 70 per cent. Simply put, farmers need to grow more from less. With this challenge ahead, now is the time to evaluate farming practices and policies, be champions of sustainable farming, and encourage agricultural innovation.

5. BUSINESS INNOVATION

The very definition of agriculture is expanding. As volatile markets cause uncertainty for many Canadian producers, many are diversifying their operation to take advantage of new opportunities. Agricultural news in 2009 featured stories of producers experimenting with niche crops or breeds, adding an agritourism component to their operation, connecting with new buyers — from local chefs to overseas businesses, or offering new services such as seed treatment. What’s more, we’re hearing about these initiatives in new ways: via Twitter, blogs, online news services, networking events, and more. These initiatives and new ways of sharing information are all excellent examples of how Canadian producers are seeing opportunities in the challenges and are demonstrating true Canadian innovation.

Greg Jowett heads the Western Business Region for Syngenta Crop Protection Canada, Inc.

The post Top 5 Ag News Stories Of 2009 appeared first on Grainews.

1. Feeding the World

The human population rises by approximately 70 million each year. As the world population surges forward, so does the need for increased food production.

In 2008, we heard frequently about starving populations and the need to increase food supplies in areas of the world that face shortages. In particular, the focus has been on the ability of Canadian farmers to produce enough food to feed the world. This is sure to remain an important issue for Canada in the year (and years) ahead. In fact, Canada is the most politically stable country of the existing five (including Russia, Ukraine, Argentina and Brazil) with the potential to substantially increase agricultural production. Successful and sustainable production is clearly in everyone’s best interest, and the choices we make, including the technology we use and the farming practices we uphold, can have a very real impact on our ability to produce food. Technology, knowledge, crop protection products, yield increases and partnerships — all these things may serve as valuable tools in the year ahead as Canadian producers work hard to run profitable, sustainable businesses.

2. Commodity Prices

While not without its challenges, 2008 has been a bumper year for many growers, thanks to a surge in many commodity prices. This generated considerable media speculation as to just how high some of the prices would climb. Then the climate changed quickly from one of excitement to one of uncertainty. Agricultural publications and mainstream media alike have reported steadily on the economy for the past several months, sharing a sense of concern around commodity prices and credit availability. No matter the marketing choices you make, focusing on yield may be the most important factor in getting profit from your farm — and the only one you can control. We can’t control prices but we can make sure we’ve done everything possible to get the best from our farm. Similarly, smart business decisions and strong partnerships are more important than ever, so I encourage producers to take the time to develop those relationships, brush up on their reading, and take advantage of the learning opportunities that come their way.

3. Biofuels

Mainstream media in particular debated whether increased production of biofuels could be blamed for rising food costs. Some reports suggested that farmers are obligated to produce food to feed people (as opposed to corn for fuel) and biofuels were presented as “immoral” and “irresponsible” given the starving populations. Much of the agricultural media presented alternative viewpoints on the issue, but there remained a sense of uncertainty about Canada’s role in biofuel production, and what that will mean to the Canadian corn producer in particular. In our opinion, biofuels are here to stay and we will continue to find more economical and energy-efficient means to produce them. For example, the Canadian canola industry believes a production goal of 1.5 billion litres of biodiesel from 2.5 million tonnes of canola in 2015 is achievable. This will have benefits along the canola value chain. The Canadian canola industry’s optimism is supported by the experience with rapeseed-based biodiesel in Germany. In 2002, over 189 million litres of biodiesel was sold in Germany and a macroeconomic evaluation demonstrated significant direct, indirect and value chain impacts, including new jobs and employment income. In the next year, it could be quite exciting to watch what new developments are made in terms of biofuels and energy production.

4. Input costs

One of the key issues in the past year for producers has been high input costs, seen mainly through the rising price of fuel and increasing fertilizer prices. A number of agricultural media have explored the impact on rising costs on producers of all sorts, ranging from growers to dairy farmers. Rampant speculation followed by the global economic crisis has resulted in unprecedented market volatility, particularly in relation to oil and fertilizer prices. Prices fell after much of this reporting, but it is impossible to anticipate what these costs, and others, will look like in the year ahead. As a result, the emphasis this year must be on smart and efficient practices both on and off the farm, and doing everything possible to increase yield and get the best value from every single plant.

5. Youth and agriculture

It’s no secret that from coast to coast, Canada’s farming population is, in general, aging. Many news stories in the past year explored concerns for the future of agriculture given the difficulty to recruit young people into the industry, and in particular, encourage young people to stay on the farm and continue the business of farming. With commodity prices rising, some media reported a renewed interest among young people, spotting younger attendees at agricultural conferences and events. We have noticed that more young people were involved in things like making purchase decisions and scouting fields. There is no doubt that encouraging young people to explore careers in agriculture is important. At Syngenta, this is something we regularly support, including the 30 Horizon scholarships we provided this year to youth involved in agricultural education. If Canada is to strengthen and protect our agricultural industry, then it’s vital we find new ways of encouraging young people and offering Generation Y the opportunities — and profits — they require to get involved in the industry and help the country achieve long-term agricultural success.

Greg Jowett heads the Western Business Region for Syngenta Crop Protection Canada, Inc.

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