(Resource News International) — Acreage in Canada for both oilseed and
confectionary sunflowers for 2008-09
is forecast to be similar to, or slightly above, the levels
seen in 2007-08, according to industry sources.
During 2007-08, 200,151 acres were seeded
to sunflowers of both varieties, according to Agriculture and
Agri-Food Canada. That compares to 190,267 acres in 2006-07
and 214,977 acres in 2005-06.
“I think acreage for all sunflowers will be very similar
to last year or maybe up a little bit higher. Last year we saw
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should keep up this year as well,” said Earl Schnellert of Agri-Tel
Grains Ltd at Beausejour, Man.
Schnellert said contracts between U.S. crushers and
Canadian producers for oilseed sunflowers will help maintain a
healthy acreage level, despite the intense land battle
heating up for this coming spring.
National Sunflower Association of Canada past president Luc Remillard of Remillard Seed Farm at St. Joseph,
Man. also said he is optimistic that
acres for both sunflower varieties will remain close to, or
even above, the levels seen in 2007-08.
For the oilseed variety, Remillard expects to see roughly
70,000 acres planted. He said increased awareness of trans
committing to the exclusive use of sunflower oil, which is
considered to be one of the healthier edible oils.
U.S. crushers, under pressure to ensure they have an
adequate supply of oilseed sunflowers, have been very
aggressive in their efforts to secure acreage, Remillard said.
Nearly twice as high
Contracts for new-crop oilseed sunflowers are starting at
a base price of 28 cents/cwt, with values varying according to
the oil content.
That compares to an old-crop price in southern Manitoba
of 32.50 cents/cwt, Remillard said.
When asked how the values compare to last year’s prices,
he said they are nearly twice as high.
Remillard is also optimistic regarding the outlook for
to 2007-08.
He said a new Clearfield hybrid variety of sunflower seed, now fully registered and offered by some seed
dealers, could factor positively into producer crop
considerations this spring.
Herbicide-tolerant Clearfield seed varieties allow for control of some broadleaf weeds such as cockleburr and ragweed.
It is something new for producers this year and adds another
tool to their toolkit, enabling them to compete with some of
the weeds out there, Remillard explained.
Sunflower producers, particularly those in southwestern
Manitoba, have struggled with weeds that threaten to take over
parts of their fields, he said.
Attractive new crop prices will also be a major draw for
farmers, Remillard said. New crop contracts for confection
sunflowers are currently sitting at 37 cents/cwt, higher than
size.
The unusual situation of new crop prices being higher
than old crop prices reflects the intensity of the acreage
battle being waged in Canada.
“The game is on,” Remillard said. “If processing plants
don’t compete with the crops that are out there, there will be
no production. The dynamics have really shifted around in our
favour. It is a seller’s market right now and hopefully we can
ride this out as long as possible.”
Schnellert agreed, saying, “Prices are increasing
significantly as a result of the acreage fight. We’re at
levels that in previous years have only been touched upon, but
this year it doesn’t look like these prices are going to fall
off any time soon.”
Options
Remillard, despite his optimism, acknowledges that
acreage estimates are subject to change given the attractive
crop options presented to farmers at the moment.
“Seed has been purchased and booked on a good, consistent
basis but a lot of times plans change,” he said. “Farmers are doing the
paperwork and they’re going to go with what pays the most.
Smaller crops like sunflowers might be sacrificed, you never
know.”
Manitoba is the major production zone of sunflowers in
Canada and accounted for roughly 90 per cent of the country’s
sunflower output during 2007, according to information
provided by NSAC.
Canada exports the majority of its sunflower seeds, both
oilseeds and confectionary. According to Agriculture and Agri-
export 90,000 tonnes, the total of the two varieties
combined. For 2008-09, exports are pegged at
85,000 tonnes. Remillard said the majority of
confectionary sunflower seeds is shipped to South American and Middle Eastern countries.
Domestically, Canada is expected to use 53,000 tonnes of
oilseed and confectionary sunflowers during the 2007-08 crop
year. That compares to the 2008-09 forecast of 51,000 tonnes.
Remillard noted there are currently no sunflower crushers
in Canada, hence the need to export oilseed sunflowers to the
U.S. for processing.
He would not rule out the possibility of
that changing but for the moment said, “There are a few
crushers that have looked at sunflowers but nobody has really
committed. It’s a different monster to crush. Some guys are
looking at it, but nothing for right now.”
