by PressCanadian wheat production recovers from recession
Wheat production in Canada increased by 50%
Improved weather conditions are boosting wheat production in Canada. It is also influenced by a global increase in demand for one of the world’s most important crops. And while the global economy is still in a downturn, the combination of these factors is producing a pretty good performance, especially compared to previous periods.
According to a report by the U.S. Department of Agriculture’s Foreign Agricultural Service, Canada’s wheat production will increase by 50% to nearly 34 million tons in 2022-2023. Canadian farmers were able to achieve these figures due to an increase in planted area and higher yields.
According to the report, favorable weather conditions helped improve the situation. The high level of soil moisture helped increase yields to the average level observed in 2019.
The USDA expects wheat exports to increase significantly in 2023 due to strong demand from countries such as China, Indonesia, Japan, Italy, and the South American region. In the third quarter of 2022, exports were up 49%, with China up 497% and Italy up 155%.
Ministry analysts forecast that in 2023, the volume of ending stocks of wheat will increase to 38 million tons. While in 2021-2022 this figure was 10 tons less. The reason for this growth is attributed to an increase in domestic supplies. In addition, not only domestic but also international demand will contribute to this.
Marketing 2019-2020 was not a good year for Canada. It was affected by adverse weather conditions, market access issues, and a pandemic that suddenly struck the world. At the time, the U.S. Department of Agriculture predicted that these three issues would continue to impact Canada’s market situation. For 2019-2020, the department projected that wheat exports would fall 9 percent to 22.2 million tons and consumption would fall 8 percent to 9.7 million tons due to an expected decline in livestock feed.
It should be noted that the Canadian market situation is stabilizing as the world continues to deal with the aftermath of the pandemic. In recent years we have seen a positive trend in Canadian wheat production. World demand for wheat is expected to continue to grow. This factor, along with increased yields, will allow Canada to steadily increase grain exports in the future. Although it is too early to make predictions for next year, the trend is positive.