Canada has long had a reputation in the world marketplace for producing a high quality wheat.
It has in essence been this country’s ace-in-the-hole in terms of marketing wheat even in times of low prices. There was potential to draw out the best prices on many shipments because the end users had confidence in the quality of wheat to be delivered. When it comes to wheat headed into the baking sector, quality is often critical, and trusting the source to deliver the required quality has been worth a premium through the years.
So when there began to be a trickle of concern in recent months about the quality of Canadian wheat perhaps dipping to the point customers were losing confidence, it was a red flag which demanded some response.
There was of course plenty of finger pointing, in particular toward the federal government which has made it pretty clear it would be just as happy with an ‘old west’ approach to grain, a system where producers can grow anything, reasoning they should be responsible for marketing what they produce.
In niche crops it’s an approach which had merit as such crops tend to be grown under contract these days. Wheat however is very much a bulk commodity. Loads from a variety of farmers end up as part of the same shipment so there is a need for some rather specific regulations, and they need to come from an overarching authority, because major grain handlers are again in the business of bulk commodity sales when it comes to a crop such as wheat.
The Canadian Grain Commission (CGC) is the body which determines such controls.
The CGC is the federal agency responsible for establishing and maintaining Canada’s grain quality standards. Its programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. The Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.
While there are some worries the Commission’s powers are being eroded, it has determined some significant changes are currently warranted.
After consulting with domestic and international stakeholders and conducting a thorough evaluation, the CGC will designate 29 varieties of Canada Western Red Spring (CWRS) and Canada Prairie Spring Red (CPSR) wheat to another class as of August 1, 2017, detailed a recent release.
“In an evaluation of varieties against the revised quality parameters for the CWRS and CPSR classes, the Canadian Grain Commission determined these varieties do not meet the quality characteristics of its current designated class (CWRS, CPSR).
“In addition, in 2016 the Canadian Grain Commission will initiate a review, for a period of up to two-years, of CWRS and CPSR varieties for which more quality data is needed before a decision about their class designation can be made.”
Given the aforementioned concerns which have arisen from some market sectors, changes were clearly needed.
In a competitive market like that for wheat you can ill-afford to let any advantage you might have deteriorate. Hopefully the moves by the CGC will help reassure customers that Canada can still deliver quality wheat as it long has.
