Canola Council joins other 8 other producer groups sending letter to International Trade Minister – Canola Council President Barb Isman signed a joint letter March 6 on behalf of the canola industry to urge the Canadian government to increase its emphasis on bilateral and regional free trade agreements (FTAs). The nine groups call on The Honourable David Emerson to “make the timely establishment of new FTA negotiations a greater priority and ensure new and existing negotiations have more resources allocated toward their success”.
The letter notes that “our closest competitors (most importantly the Unites States) are aggressively negotiating FTAs giving them preferential market access over Canada”. The letter lists the priority countries with which Canada should quickly initiate bilateral trade negotiations as China, Japan, the Andean Community (Columbia, Ecuador, Peru, Bolivia and Venezuela), India and Morocco.
Besides the Canola Council, the letter is signed by representatives of the Canadian Wheat Board, the Canadian Federation of Agriculture, Canada Pork International, the Canada Pork Council, the Canadian Grain and Oilseed Exporters Association, the Canadian Oilseed Processors Association, Cavendish Farms and Pulse Canada.
Brazil and China in bilateral trade talks – Brazilian agriculture officials were in China this week to discuss bilateral trade between the two countries. Brazil’s Agriculture Ministry said in a press release that Brazil will ask for definitive rights to export genetically-modified soybeans to China. Rights to export GMO to China are currently under review on an annual basis.
Canola Council will take part in Ottawa roundtable – Federal Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board Chuck Strahl will be hosting a roundtable in Ottawa with agriculture industry stakeholders on the World Trade Organization (WTO) agriculture negotiations on Tuesday, March 14. International Trade Minister and Minister for the Pacific Gateway and the Vancouver-Whistler Olympics David L. Emerson will also be attending the roundtable to provide his perspective on the WTO negotiations.
Brazil to host Biosafety Protocol meeting – The Canada Grains Council and the International Grain Trade Coalition, to both of which the Canola Council belongs, have been working fast and furious over the past month in preparation for the Biosafety Protocol meeting (COP/MOP 3) in Brazil. At the top of the list is the documentation required for shipments of grains and oilseeds that may contain living modified organisms (LMOs). Recognizing that we support the intent of the Protocol to protect biodiversity, the canola industry is working with the Canadian government and partners around the world to ensure that any system would be workable and not impact trade or allow countries to use this requirement as a technical trade barrier.
National Seed Forums in Ottawa provide positive working environment – JoAnne Buth, Council’s VP of Crop Production & Biotechnology, attended two National Seed Forum Workshops this week. “Plants with Novel Traits” looked at the options for developers and the Canadian Food Inspection Agency to develop a predictable and environmental risk-based system for determining “novelty” of new plants for the purpose of regulation by the Biosafety Office. This was a very positive step towards a system that will not stifle innovation, yet will still protect the Canadian environment. The second workshop was on “Adventitious Presence (AP)” and over 50 people discussed options for setting an allowable limit of adventitious presence of a plant with a novel trait, including transgenics, coming into Canada. There was considerable discussion about how Canada could be a model to the rest of the world if a system could be developed.
Do we really need GMOs? Business Journal says YES – A recent study from the Journal of American Academy of Business examined the world's need for GMOs. The empirical results reveal evidence that the adoption of GMO production technology increases the quantity of grains traded and lessens upward pressure on food prices. Recent statistics show the acreage planted on a global basis is no longer increasing due to development and climate change. Therefore, if no new production technologies are developed and adopted, the food supply curve will no longer shift, causing food shortages.
But not everybody agrees! – A hundred international organizations from more than 40 countries have declared April 8, 2006 as JIGMOD (Joint International GM Opposition Day). The day is to feature major public events in several of these countries to demonstrate continuing global opposition to genetically modified foods and crops.
Yes to Innovation, No to Trade Disruption – The Council’s JoAnne Buth made a presentation at the Bio-Industrial Oils Symposium in Saskatoon on February 28 on “Balancing Food, Innovation and Markets”. The primary message to the attendees was that the CCC supports innovation, however, developers of bio-industrial products need to ensure that any new transgenic changes to B. rapa , B. napus and B. juncea do not put the $11 billion canola food industry in jeopardy. The world, including Canada, has a zero tolerance policy for the detection of transgenic events not approved in their country. Until we can change this zero tolerance policy, the use of transgenics in canola species must be accompanied by the regulatory approval in key canola export markets such as the US, Japan, Mexico, China, South Korea and the EU.
The Manitoba government has eliminated all provincial taxes on Manitoba-produced pure biodiesel – Manitoba Agriculture, Food and Rural Initiatives Minister Rosann Wowchuk and Energy, Science and Technology Minister Dave Chomiak announced this week that the province will immediately cease to collect both the road tax and provincial sales tax on pure biodiesel that meets the American Society for Testing and Materials (ASTM) fuel-quality standard. The incentive will remain in place for five years to give the industry time to grow. The removal of these taxes provides an 11.5-cent-per-litre advantage over regular diesel and is in addition to the four-cent-per-litre tax break offered by the federal government. The tax advantage applies to the biofuel (ASTM) portion of biodiesel blends.
The announcement more than doubles the 5.5-cent-per-litre biodiesel tax advantage announced as a cornerstone of the province’s biodiesel action plan.
Louis Dreyfus plans to build world’s largest biodiesel plant – Louis Dreyfus Agriculture Industries, LLC, will build the world's largest biodiesel plant in Indiana. The combined 50-million bushel per year soybean processing plant and biodiesel production facility will be located near Claypool, Indiana in Kosciusko County.
Soybean growers praised the announcement. Upon completion, the new facility will be one of the world's first biodiesel production plants to be fully integrated with a soybean processing plant. About 260,000 metric tons of soybean oil from the plant will be used each year for biodiesel production. In addition, 1 million tons of protein-rich soybean meal produced each year will be used by the livestock and poultry industry. The biodiesel plant will produce up to 250,000 gallons of biodiesel per day, or more than 80 million gallons per year.
Indiana soybean farmers have been funding biodiesel promotion, research and education programs for more than ten years through the soybean checkoff program.
Polish fuel producers have begun to invest heavily in biofuels – The merger of two major Polish biofuel producers will triple the production of rapeseed esters to 200,000 tonnes. In 2007, production will further increase, with new companies investing in biofuels. The plans provide for a production level of 1m tonnes, which requires 2m tonnes of rapeseed(canola). Poland's biofuel rush is a consequence of the EU directive forcing the country to achieve a 5.75-percent level of bio-additives in fuels used in transport by 2010. The Economy Ministry is considering introducing legislation stipulating a minimum bio-component content in fuels of 5 percent.
Crop insurance premiums drop for Alberta growers – Alberta's grain and oilseed producers will see a 20-per-cent drop in their share of Production Insurance premiums in 2006. Doug Horner, Alberta's Minister of Agriculture says Alberta growers already benefit from reduced Production Insurance premiums because the federal and provincial governments pick up 60 percent of premiums and all administration costs. Now, producers' 40-per-cent share will be reduced a further 20 per cent. Costs of the $20-million premium reduction will be absorbed within existing budgets.
Canola Ink is your biweekly update from the Canola Council of Canada. Please copy, reprint or transmit any portion of this report. If you have questions or comments, contact Diane Wreford at (204) 982-2108 or e-mail wrefordd@canola-council.org.
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