Market updating June 28, 2022
PEI Grain Elevator Corporation (G.E.C.) staff remain healthy and, are pleased to advise that we remain functional & operational as handlers and marketers of grain and oilseed crops for you once again; as we head into year 3 since the unprecedented outbreaks of health, market, value & supply chain issues & disruptions related to C.O.V.I.D-19 as well as recent global food insecurity & shortages due to climate change or variability and now the Russia / Ukraine war and its harsh impacts on global food security, distribution, market supply & value chains. Many of us never saw these issues coming but here they are! Fortunately, these global impacts are not as significant for us all; here in Atlantic Canada. But we are impacted to some degree none the less.
One significant observation is that globally, sustainable food production volume is now being seen as higher in priority as stakeholders are working collaboratively to address crop yield/quality, labour shortages and restore or improve system(s) functionality.
Our three elevator facilities have been further efficiency and functionally upgraded and, we will continue to support our local farmers, clients and, customers with high quality service. As Atlantic Canadians with strong agricultural backgrounds, the more high quality crops we can produce for ourselves, the less we have to depend on imports. Our regional livestock feed and food markets remain viable, and worthy of support. Export opportunities when they emerge; beyond regional borders are not completely, ignored or lost either! But internal trade restrictions and a lack of volume handling by rail or marine infrastructure with respect to transportation are competitiveness impediments.
None the less, we are taking steps to support growing corn and soybean markets through efficient handling, drying and storage enhancements while also providing market opportunities for barley, wheat, and oat cereal crops. Even high costs related to corn and soybeans are offset by high yield potential and selling prices. The one aspect related to the success of these crops that is risky is the fall related harvest weather. But it appears that varietal improvements can ensure crop quality and yield enhancement thus avoiding price discounting and import displacement. Sustainability and transparency criteria are also becoming more prominent in terms of priority. As a licenced facility with trained and, highly qualified staff, we are able to certify crop status if demand driven, as necessary, and as required.
As well, our value added services continue such as market monitoring and assessments, storage and handling, importing feed additives, trucking, roasting and extruding, bagging, cleaning, grading, quality assessments, crop advance funding, and customer credit support(s).
Our focus remains on operating with a breakeven budget. Risk Management programming is very important and our grain pooling and hedge protection is augmented by forward contracts where possible so as to maximize or stabilize returns to growers and ensure or enhance quality for end use customers.. Soybean marketing by forward contracting has caught on and can be explored as well for wheat as long as the presence of fusarium is a non – issue impacting both quality and marketability. It’s been a while since we were subjected to a fusarium crisis. Varietal and management improvements go hand in hand!
This past year given the drought related wheat shortage in Western Canada, our exports of milling wheat to Halifax, have actually increased. So, please reflect on the services we provide and reach out to our site Supervisors or General Manager. Contact details are all on this website.
You will find that our pricing and services is “high end” regionally with respect to those offered by competitors although we acknowledge that more buyers are desirable in terms of impacting regional supply, demand and competitive pricing. It also appears that on farm storage has increased and from a G.E.C point of view, an opportunity to offer a competitive price, along with efficient pickup and delivery can do our sellers no harm.
Good luck in the upcoming marketing season and give us a call for further dialogue, service access or advice. Despite all the negativity that is out there, our region and our sectors can work together to enhance profitability and win/win deals.