Trade Barriers to the EU are Likely not to be Lifted in Time for Canada’s 2011 Lentil Crop

Bureaucracy takes time. Unfortunately for Canadian growers, the EU and Canada’s growers associations may not reach an agreement over acceptable levels of glyphosate residue on lentil exports to the EU before 6-12 months, not in time for the harvest and marketing of the upcoming 2011 lentil crop. The current European Union’s maximum residue limit (MRL) is 0.1 parts per million (ppm) for glyphosate in lentils entering their market, whilst in Canada and the USA levels of 4 and 5 parts per million are allowed. Although Europe only accounts for 10-20% of Canada’s lentil exports (Canadian lentil exports to Europe exceeded $110 million in 2010), it is an important trade part for North American growers and a halt to pulse trading in this direction can only give way to other market players like Australia and Turkey. Consequently we have seen a surge in requests from Europe of glypho-free lentils from other supplying countries, which previously were not competitive against Canadian prices, but are now enjoying a growing demand since there’s a shortage of glypho-free product on the market. News of the new trade barrier to Europe came less than two months after Pulse Canada announced it had resolved a longstanding market access issue with China regarding selenium residue. So what’s going to be next?

Grain Watch: Quinoa’s Growing Popularity in the Western World

Quinoa, also known as the ‘lost crop’ of the Incas, has been cultivated across the South American Andes for centuries. Bolivia and Peru are amongst the major producers of this ancient grain, and whilst increased demand in the Western world have somewhat enriched the local farmers, on the other hand what used to be staple food of the region is now too expensive for a good part of the population. As eco18 reports quinoa prices have almost tripled over the past five years and in that time consumption in Bolivia of this staple food fell by 34% according to the country’s agricultural ministry. Thanks to the discovery and wise marketing of quinoa’s ‘superfood’ properties, this grain has enjoyed a growing demand for quinoa on a global scale. As the NY Times put it earlier this year, when NASA scientists were searching decades ago for an ideal food for long-term human space missions, they came across this Andean plant. With an exceptional balance of amino acids, quinoa, they declared is virtually unrivaled in the plant or animal kingdom for its life-sustaining nutrients. Not just Europe and the USA, Australia is also increasing its imports of quinoa as foodnews.co.nz reports: supermarkets in Australia are struggling to cope with demand… Sales of quinoa increased by almost 60 per cent at Coles after it featured on an episode of Masterchef Australia; and have more than doubled at Woolworths over the past year. However interest in the grain is now so high, that supermarkets are finding it difficult to source certain varieties. These include black and red quinoa, both of which are in short supply due to cold weather affecting crops in Bolivia and Peru.

Bleak Wheat Outlook

Wheat, the world’s second consumed grain, has undergone a difficult and unstable year due to a series of natural disasters and consequent supply shortages. Apparently the roller coaster ride isn’t over yet, as 2011 crops may again under-deliver on a global scale. Let’s take a look at who the winners and losers might be:

– EUROPE: wheat output in drought-struck Europe may be disappointing. France had its second-hottest April since 1900 and one of the driest since 1953, while the UK had its hottest in three centuries. With the hot, dry weather continuing into May, there is a growing feeling that yields are set to decline.

– RUSSIA: there are speculations that Russia will lift its export ban as early as this summer, but as Russian Prime Minister Vladimir Putin reiterated just recently, the return of Russia to the global grain export market is dependent on this year’s harvest and domestic demand, so for now we are left with a big question mark.

– INDIA: the U.S. Department of Agriculture’s attache predicts that a record wheat crop of 84.2 million tons may prompt New Delhi to allow up to 2 million tons of exports, the first time in five years India would export grain.

– AUSTRALIA: as reported by agrimoney whilst Australia’s wheat exports have boomed (mostly filling in for the Soviet Union), parts of Western Australia have had their lowest rainfall on record for the past 16 months, posing a significant threat to the country’s wheat crop and reducing the likelihood of setting a new national record. The region typically accounts for up to 40% of Australia’s wheat output.

The uncertainty around Russia and India re-entering the wheat trade and the deteriorating prospects around Europe and US drought-struck crops are unlikely to cool down markets or prices in the near future.

sources: Agromoney.com / 7marketspot.com / ft.com

Aldi gains ground with latest artificial colourings ban

Headquartered in Germany, Aldi positions itself as a ‘no frills’ discount supermarket chain with a global presence from Europe to the US to Australia. Whilst shopping at Aldi’s isn’t much of an exciting visual experience (as you see in the picture products are left in boxes or often pallets parked along the aisles), its reputation has grown for good value for money when it comes to staples like food, beverages and household items. In Australia, polls have recently shown Aldi gain grounds against the local distribution giants like Woolwoorths and Coles when it comes to customer satisfaction. No doubt that with its latest announcement of total artificial colourings ban from its entire food product range, Aldi has scored another point against its competitors. You have to consider that the discount chain’s product offering is mainly home branded, except for a few other mainstream brands, therefore they have complete control over almost every SKU. The move towards healthier eating options is primarily targeted to parents and family associations, in a country where children’s eating habits are very much on the public opinion’s agenda.

pulses from Australia just arrived

I just received samples of Australian pulses to dispatch to my clients. The recent floods that hit Australia in December literally washed away thousands of acres of crop, and the harvest of what was left was significantly delayed. Prices are higher and some varieties’ quality has been downgraded due to damage sustained during the floods. Having said this, luckily I’m still experiencing a good demand from buyers, as disastrous weather has hit other producing nations like China and Canada and political turmoil has slowed Egypt’s operations. Currently there’s interest for Faba beans, Broad beans and Mung beans.