Organic pricing limited as trade waits on new crop

By Glen Hallick
Glacier FarmMedia staff

As the end of the 2022/23 crop year winds down, and the new year is about to begin there remained a wide gap in the availability of bids for organic grains. While organic farmers in Ontario continued to have few prices to go on, their counterparts on the Canadian Prairies had much more of an array.

One key factor is the difference in the way organic farmers in the province go about selling their organic grain, according to Harro Wehrmann of Wehrmann Grain and Seed in Ripley, Ont.

“We’re different than the West, in that a lot of people here harvest the crops, then try to market them. They’re not necessarily pre-contracting,” he explained.

• Related: Organic price quotes: Late June

Wehrmann said he tried to find a base price for organic soybeans in Ontario, but found there simply wasn’t one just yet, so his company didn’t have a price. Otherwise he offered prices for hard red winter wheat (C$19 per bushel) and spring wheat (C$22 to C$27/bu.) as well as Khorasan (C$30/bu.).

Kim Mayer of the Andersons Canada echoed Wehrmann comments, noting that bids were limited at best. Rob Wallbridge of the Organic Council of Ontario added the province’s organic farmers will be keeping an eye on the severity of the dry conditions affecting crops in the United States.

The trio agreed that despite the lengthy absence of pricing in Ontario during 2022/23 it has very unlikely led organic farmers to get out of the industry.

And that’s the same sentiment on the Canadian Prairies. Dwayne Lee of Growers International Organic Sales Inc. said there are a few other reasons for farmers to leave the organic industry. He listed retirement as his reason, but acknowledged the increase in conventional prices likely has lured some to make the switch partially or entirely.

As with Ontario, “everyone wants to wait and see what happens, Lee commented of Prairie organic farmers.

There’s still demand, but I wouldn’t say they’re beating down our door for it. – Bill Longman

Jason Breault, grain buyer for RW Organics in Mossbank, Sask. added the mills have taken the same perspective regarding bids.

“There are still prices out there. It’s just not a whole bunch,” he said. “The other thing is once they know what it’s worth, they’re going to need it when they need it. But if there’s lots of grain, the prices will be down. If there’s not, the prices will be pretty good.”

Bill Longman, of Sunrise Foods International in Saskatoon, Sask. expressed similar sentiments, “there’s still demand, but I wouldn’t say they’re beating down our door for it.” He suggested inflation and buyers being covered for the time being have added to lack of available pricing.

Longman also noted recent rains on parts of the Prairie have helped with crop development.

Scott Shiels of Grain Millers Canada in Yorkton, Sask., said with spring planting wrapped up, the crops look very good at the moment, but there remains a long way to go before harvest.

– Glen Hallick is a reporter for MarketsFarm.