Plenty of plantings, bids scarce

By Adam Peleshaty
Glacier FarmMedia staff

While organic growers are busy planting their crops, buyers are having a wait-and-see attitude before putting forward any price bids.

Warm and dry weather on the Prairies has helped spring seeding advance quickly over the past month and growers are hopeful that recent conditions can lead to good harvests in the fall.

“Our organic producers in northern Alberta have been ahead of the game with it being so dry up there. Obviously, the fires have been a bit of concern. But over the last few days, they’ve had some rains,” said Scott Shiels, grain procurement manager at Grain Millers Inc. in Yorkton, Sask. “Around here, (plantings) have gotten going about a week or so ago…There’s decent moisture in the ground. So I think we’ll have fast emergence.”

Ken Richmond, a farmer from St. Andrews, Man. and procurement manager for Regina-based O+T Farms, said there is a need for rain in the eastern half of the Prairies.

“Things are going to wrap up pretty soon over the next week to 10 days, provided the weather stays the same,” he said. “Right now, the eastern part of the western provinces tends to be dry. We could use a little soaker. In Manitoba, we could use some rain as soon as seeding’s done.”

Jason Breault, manager of RW Organic at Mossbank, Sask., said there may be more organic wheat acres being grown, filling the void left by fewer oat acres. He is also hopeful that future conditions will help support crops.

“I guess it all depends on what the rain does. We’re all hopeful it’ll be better than in the last two years,” he added.

There’s not a lot of need for (organic crops). I know the high prices last year chased some end users away. – Jason Breault

Richmond added that many organic crop buyers seem to be already covered, while also suggesting that end users deterred by higher prices last year haven’t come back to the organic market.

“There’s not a lot of need for (organic crops). I know the high prices last year chased some end users away,” he said. “With these lower prices, they probably will come back eventually. But there’s no problem getting product.”

Just like in the Prairies, seeding progress has also been quick in Ontario with the province’s organic corn crop already in the ground and soybean plantings about to start. However, this spring has been a rollercoaster weather-wise.

“The concern that’s starting to come up now is dry weather. It got warm really early, then it turned cold and wet and now it’s dry again,” Rob Wallbridge, director-at-large for the Organic Council of Ontario, said. “The soil hasn’t warmed up a lot yet, so we really need a warm rain to get the crop out of the ground nice and fast ahead of the weeds.”

He added that farmers are sticking with their rotations, while also expecting the organic winter wheat crop to head over the next two weeks. Despite this, there has been a near-total lack of bids for organic crops.

“The market is very, very slow and we currently don’t have any bids for new crop wheat or corn or soybeans, which is a highly unusual situation,” Wallbridge said. “We had buyers come in and buy new crop a few weeks ago and then they backed out and are now waiting to see what happens.

“The question in our minds is: Are prices going to drop or hold steady? I don’t think there’s any expectation of any bump in prices.”

Harro Wehrmann of Wehrmann Grain and Seeds at Ripley, Ont., said that while planting conditions are good, he expects a large carry-over of old crop organic corn and soybeans going into the upcoming marketing year. He also mentioned there’s been a large drop in demand for Canadian organic soybeans due to imports from Africa and India.

“Old crop is being traded still. There are contracts that are not being executed,” Wehrmann said, adding that brokers are “nowhere to be seen.”

“The oats market has all but collapsed and the feed market is very weak. The food market is stable and contracts are being executed, other than soybeans.”

An online survey conducted by Research Co. found that Canadians are more likely to pay more for organic food than not. In a poll of 1,000 people, 54 per cent said they would pay more for organic food, while 41 per cent said they would not and five per cent were not sure. Of respondents aged 55 and over, 57 per cent said they would not pay more for organic, but only 41 per cent between the ages of 35 and 54, as well as 23 per cent between the ages of 18 and 34 responded in kind. In addition, 24 per cent of respondents said they would check food labels to see if a product was organic.

— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.