Soy Canada on March 28 announced the rollout of Sustainable Canadian Soy, a program it said will be available for the 2023 growing season. Exporters and handlers who supply customers that have been asking for sustainability verification are lined up to manage the program.

The verification would include a third-party assessment for a “small number” of participating growers each year, Soy Canada said. Interested IP and food-grade soybean growers can sign up through participating exporters or grain handlers.

Brian Innes, the executive director for Ottawa-based Soy Canada, described the new verification as “a market-driven solution that will enable our industry to compete for market share and enhance the sustainability of Canadian farms and the entire soybean value chain.”

MORE READING: Feds open up consultations for sustainable ag strategy

The Sustainable Canadian Soy program is set up using the Farm Sustainability Assessment (FSA), a whole-farm benchmarking and assessment system developed by the Swiss-based not-for-profit SAI (Sustainable Agriculture Initiative) Platform. According to SAI, over 200,000 farms in over 40 countries are now in FSA-verified farm groups.

For growers, taking part in Sustainable Canadian Soy includes completing an on-farm sustainability questionnaire on matters of “economic viability, social responsibility and environmental stewardship,” Soy Canada said.

So far, “interest in the program is coming from users of food-grade and identity-preserved (IP) soybeans,” Innes said.

Soy Canada said it developed Sustainable Canadian Soy with “extensive” farmer and industry consultation, and with some funding through the federal AgriAssurance program.

Soy growers in Canada are already following sustainable practices, Innes said, and many of those already take part in value-added programs that “meet the needs of customers and offer premiums.”

Companies taking part in Sustainable Canadian Soy so far include The Andersons, Hensall Co-op, Ceresco, Snobelen Farms, Sevita International, St-Lawrence Beans and Huron Commodities.

The FSA “focuses on meeting customer needs and values” and lines up with the Sustainable Canadian Soy program’s priorities, including land use efficiency, “climate-smart” farming, soil health, water stewardship, biodiversity and habitat, Soy Canada said.

FSA is also benchmarked to other soybean programs worldwide such as The Roundtable on Responsible Soy, International Sustainability and Carbon Certification, and the U.S. Soy Sustainability Assurance Protocol, Soy Canada said. — Glacier FarmMedia Network

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Some 26 representatives of Canada’s soybean industry made the trip last month, along with individuals from Agriculture and Agri-Food Canada, Transport Canada, the Canadian Grain Commission and Soy Canada.

According to a Feb. 23 press release, customers heard about Canadian growers’ production sustainability, projections for the 2023 growing season, the global soybean market, Canada’s traceability program, research initiatives and other topics.

International shipping, domestic logistical issues and other factors have affected Canada’s ability to supply soybeans to large and growing foreign markets.

As detailed by Soy Canada delegates, the Indo-Pacific visit was intended to support stable access to food and feed soybean markets, as well as endorse free trade of the commodity. The first in-person meeting between visiting Canadians and buyers in the three Asian countries since 2019, it was also an opportunity to discuss wider trade challenges and constraints.

“Asian markets are very much about relationship building and having direct connection points,” said Nicole Mackellar, market development manager for Soy Canada.

Buyers reiterated their need for consistency in the supply chain, while the delegation communicated how the industry is trying to resolve lingering supply issues such as shipping container shortfalls and logistical challenges.

Mackellar said transportation improvements include more container availability and faster transit times. Things are still far from pre-pandemic levels, however.

Brian Innes, executive director of Soy Canada, also said congestion is easing, but the concentration of global shipping into just three trade alliances continues to frustrate those who sell Canadian commodities.

“Shipping is getting more normal in price and more predictable than it has been. As Canadians, though, we continue to see real challenges with the level of service offered by a very concentrated international shipping community,” said Innes, adding the United States government has been particularly effective at holding shippers accountable for better service.

“In Canada we have not had that same pressure, and we’re also a smaller market for both imports and exports. There’s been virtually no action by the Canadian government …

“What I heard from customers was the emphasis on the importance of predictability; predictability of systems within Canada, that’s our railway and ports, and on the shipping side. But at no time did I understand from them that it was a particular concern for Canadian exports,” he said.

As shipping issues evolve, Mackellar says the sector has placed more emphasis on forward contracting in an effort to communicate expected export volumes.

Market constraints

Each country highlighted different buyer needs and market trends. In Japan, high quality and protein in identity preserved (IP) soybeans were noted as particularly important for food products.

In Malaysia, participants heard about the country’s rising middle class and its demand for soy food products.

In Vietnam, soybean crushing capacity is set to double in the next two years to meet growing demand for food and feed. However, Canadian soybean exports have faced significant market access challenges in Vietnam over the past five years.

Vietnam is a particularly “price sensitive” country, said Mackellar, and often opts for unclean shipments because they are cheaper. But Canada does not send unclean grain shipments due to the potential presence of creeping thistle, so the price of Canadian soybeans is higher. Consequently, Vietnamese buyers look to other sellers.

“The program provided an opportunity to talk with customers about how we can improve trade between our two countries. There’s a lot of interest in Vietnam,” Mackellar said.

Regardless of challenges discussed, Mackellar and Innes said the trip provided many reasons for optimism. Current market opportunities already outstrip what Canadian growers can supply, and with other countries’ growth in wealth, changes in eating habits and other socio-economic factors forthcoming, greater opportunity is anticipated.

For Scott Persall, an Ontario farmer and one of the grower delegates, repeated emphasis on the quality of Canadian soybeans was both stark and heartening.

“I was really impressed all three countries talked about the high quality of soybeans for Canada,” he said. “One of the challenges we heard from seemingly all countries was IP soybean price increase. At their end, they were concerned about high energy, labour, and raw materials. Those are the challenges here … in Canada as well.”

This article first appeared in Farmtario.

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Canadian soybeans have a lot going for them, says Brian Innes.

They fit well into crop rotations, are suited to the warmer weather coming with climate change, produce protein ideal for people and animals, a healthy oil and the world is demanding more of them, SOY Canada’s new executive director told its seventh annual meeting held via ZOOM June 22.

There are lots of challenges too, but’s why SOY Canada, which represents farmers, seed companies, processors and exporters, exists, Innes said

Why it matters: Soybeans are an important crop in Manitoba and Canada, ranking third and fourth in seeded area, respectively. With just 5.3 million acres of soybeans planted this spring, Canada remains a small player internationally, but SOY Canada sees opportunities.

“As a small player in the global market, being different can easily be seen as being inferior if we don’t spend time as a (soybean) value chain to co-ordinate,” Innes told the meeting. “I see us being active in connecting the dots so that we can align our supply with the value our customer sees, sharing information so we’re getting the most value possible for our crop in Western Canada.”

In contrast to Canada’s five million acres of soybeans this year, Brazil, the world’s largest producer, is estimated to have 141 million acres with the United States not far behind.

Skeptics say soybeans sell themselves, so who needs SOY Canada?

Some also note soybeans need moisture to yield well, and often that’s lacking in Western Canada.

“But the way I see it these are the exact things that make the work we do at Soy Canada important,” Innes said. “… when you are small you can be nimbler and capture opportunities that bigger players can’t.”

“Even though people may know soybeans, they may not know what our food-grade varieties can do to make great soy milk, or they may not know our sustainability advantage, or how to get northern beans to best fit into a feed ration.”

He also noted excess moisture events are common and soybeans fare well during them.

“ There are other organizations but I don’t see another organization that creates a space to link the soybean customer to the soybean supply chain,” he said.

Where there’s either an opportunity to help Canadian soybeans, SOY Canada will be there, Innes said.

“We’ll be focused on what’s valuable to our customers and working together to deliver it. And most importantly, we will do all of this in close collaboration with other agri-food organizations recognizing that the livelihoods of our seed companies, of our producers, of our exporters and processors, depend on more than one oilseed. I am really excited about the potential for our crop in Canada and what we can do together. As such a young organization our future is still being written.”

One Canadian advantage is its food-grade soybeans.

“We need to stay on top to have a clear message to our customers about how our soybeans meet their quality needs, including increasing questions about how we grow our beans sustainably,” he said. “We can’t rest on our laurels.”

Innes said the crop’s greatest growth potential is in Western Canada.

“As a relative newcomer we’ve had some challenges getting consistent protein, but we are on a path to increase it and there is lots of research being done,” he said.

A good year in 2020

2020 was a good year for Canadian soybean production, SOY Canada chair and Dauphin farmer Ernie Sirski told the meeting.

“A record average yield (46.3 bushels an acre) across Canada helped producers fill their bins and stronger global prices recently have the sector rebounding from difficult years that we’ve had in Canada,” he said. “Our quality was stable and exports continued to be diversified.”

Domestic soybean production was up last year to 6.4 million tonnes, following two years of contraction, including a drop in plantings to 5.1 million acres last year.

“Despite continued dry conditions in Western Canada, average yields increased to the third-highest yield ever recorded in Western Canada,” Sirski said. “An average of 35.6 bushels an acre resulted in production of 1.2 million tonnes.”

Most western Canadian production was in Manitoba last year, with 1.04 million insured soybean acres, according to crop insurance records.

Insured Manitoba average yields of 38 bushels an acre resulted in production of almost 1.08 million tonnes or 90 per cent of western Canadian production.

Manitoba soybean yields were 12 per cent higher than the 10-year average of 34 bushels an acre.

Canadian soybean protein levels were stable at 38.1 per cent, Sirski said, citing Canadian Grain Commission figures. Food-grade soybean content of 41.7 grams per 100 grams of dry matter was similar to 2019.

There were fewer soybeans processed domestically in 2020, but seed exports of 4.3 million tonnes were up slightly.

Canada exported soybeans to 63 countries with the top five accounting for 48 per cent of it.

“Our exports to China, the world’s largest soybean importer, continued to be challenged by political tensions that began in December of 2018,” Sirski said.”

Canada’s top five soybean buyers in 2020 were Iran China, Italy, Bangladesh and Japan.

Promoting sustainability

SOY Canada played one of three videos it has produced to promote Canadian soybeans.

“Canada is well known for its vast forests, clean air and pristine rivers and lakes,” the video says. “It’s only natural that Canada’s soybean industry is committed to sustainable production that preserves our air, water and soil for generations to come. Through sustainable farming production, we’ve grown production significantly without a dramatic increase in farmland. Instead, we have increased the productivity of each acre.”

The video says between 1971 and 2016 Canadian soybean yields increased 57 per cent while total area farmed in Canada declined six per cent.

“Our soybeans are taking carbon dioxide from the air, nitrogen from the soil and turning it into high-quality protein and oil,” the video says.

“Between 1981 and 2011 Canadian soybean farmers have increased yield by 32 per cent while using 26 per cent less energy and reducing our greenhouse gas footprint by 17 per cent per soybean. Canada’s soybean industry is committed to sustainability.”

SOY Canada had a net earning of $133,286 in 2020, up from $83,887 in 2019, its financial statement shows.

Most of SOY Canada’s 2020 revenue — $505,855 — came from memberships, including 76 per cent from farmers and 12 per cent each from seed companies and processors.

In a recorded address, federal agriculture minister Marie Claude Bibeau praised the soybean industry for boosting exports despite the COVID-19 pandemic.

“Our government’s strong trade agenda will continue to help you grow those sales,” she said.

The federal government’s fuel standard will increase demand for soyoil in biodiesel, while Ottawa’s investment in Protein Industries Canada will grow demand for food and feed from soybeans, Bibeau said

“You have a great story to tell and we need to work together to tell that story to the world.”

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In addition to thanking Davidson for his years of work in the public and private sector, awards recognizing service to the soybean sector were presented to Laura Anderson of the Canadian Grain Commission (CGC) and Lorna Woodrow of Agriculture and Agri-Food Canada (AAFC) during SOY Canada’s virtual annual meeting June 22.

Davidson, who grew up on an Ontario farm and studied agriculture at university, had an “impactful” career with the Canadian Food Inspection Agency, Agriculture and Agri-Food Canada, Foreign Affairs and International Trade, federal agriculture minister Marie Claude Bibeau said in a recorded address.

Davidson served the Canadian government in Washington D.C., Paris, Tokyo and the Middle East.

He left government in 2009 to represent the Canadian Wheat Board in Ottawa. He then joined the Canadian Meat Council and in November 2017 joined SOY Canada.

“Ron you are true ambassador for Canadian agriculture,” Bibeau said. “Canada has benefitted enormously from your contribution.”

SOY Canada chair Ernie Sirski said the organization was well-served by Davidson.

“Ron was always the office workhorse,” added former Canadian Meat Council executive director Jim Lawes.

Davidson said Canadian soybeans faced many challenges during his three and a half years at SOY Canada, including being caught in the China-U.S. trade war, which lowered soybean prices to Canadian farmers who, unlike their American counterparts, didn’t get subsidies to offset lower prices.

Laura Anderson

Laura Anderson’s SOY Canada service award recognizes her work with the grain commission on its Canadian Identity Preserved Recognition System (CIPSR) — a program that segregates food-grade soybeans.

Anderson, the CGC’s former national manager of process verification and accreditation, retired two years ago

“CIPRS has raised the quality of soybeans internationally and has become a valuable calling card for our customers,” Sirski said.

Anderson stressed CIPRS was a team effort, including assistance from the Canadian Seed Institute.

Former CGC chief commissioner Barry Senft and the CGC’s former chief operating officer Gord Miles contributed too.

Anderson also praised her colleagues Melanie Stoughton and Matthieu Le Dorze who worked with her on CIPRS, and continues to do so.

Lorna Woodrow

Lorna Woodrow, an AAFC plant physiologist at Harrow, Ont., played an important role in food-grade soybean research, Sirski said.

“This program has ensured the retention and expansion of the Canadian global market share of food-grade soybeans and it has helped Canadian soybean producers continue to develop and deliver superior food-grade soybean,” he said.

Woodrow, who is retiring soon, said her research benefitted by getting feedback directly from customers.

“We all know that we are as only as good as the people that work with us and my colleagues at Harrow have been indispensable in the overall operation of the soy food program,” Woodrow said.

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Innes, who was the Canola Council of Canada’s vice-president of public affairs based in Ottawa, started his new position May 3, replacing Ron Davidson who is retiring after 50 years of public service in agriculture and foreign affairs.

Like the canola council where Innes worked for 9-1/2 years, Soy Canada represents the crop’s value chain from farmers to crushers and exporters.

In an interview May 28 Innes said his priorities include:

• Ensuring the soybean value chain comes together to share information and co-operate to meet challenges.
• Improving soybean protein content in western Canadian soybeans so they become a more attractive crop in rotations.
• Maintaining Canada’s reputation for exporting top-quality, food-grade, identity-preserved (IP) soybeans.

“You don’t stay on top without effort,” Innes said. “As a sector we need to remain laser focused on our competitive advantage there. That’s where I see a real role for Soy Canada to tell that story internationally and to ensure things are in place here in Canada to deliver on that world-leading business.”

Innes said he enjoyed his time with the canola council and expects to work with it as Soy Canada has done in the past.

“In discussions with the board and the industry there is certainly a willingness and interest in more collaboration across agri-food organizations,” he said. “Soy Canada and the canola council have actually shared staff in the past. There’s nothing firm now but the spirit of working together with oilseed organizations I see continuing between Soy Canada and the canola council.”

Soy Canada was founded just seven years ago and the sector has much to gain through increased collaboration, Innes said.

“There’s certainly lots of need and I see a real benefit for those in the soy industry to come together as a value chain,” he said, adding he hopes more grain companies will join.

Trade, including the development of trade deals, and the ongoing dispute with China, were major issues during Innes’s time at the canola council.

While at the canola council Innes served as president of the Canadian Agri-Food Trade Alliance.

Before joining the canola council Innes worked for a consulting company on government relations.

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Statistics Canada’s 2019-20 principal field crop acreage report, released April 24, estimated 5.65 million acres of soybeans are to be planted in 2019. That’s a 10.6 per cent drop from 2018, but on par with the acres planted four years ago.

Ron Davidson, the executive director of Soy Canada, said producers had two terrific years that resulted in acres increasing dramatically from 2016.

Statistics Canada data indicated there were 7.28 million acres of soybeans grown in 2017 — a jump of 30 per cent from the previous year. Those acres produced nearly 7.64 million tonnes of soybeans, with Ontario producing half.

Soybean acres in 2018 slipped to approximately 6.32 million acres for about 7.18 million tonnes produced. Of that, in excess of 58 per cent of production was in Ontario.

There is a possibility of soybean acres increasing in at least some areas of the country. Wet conditions, such as what southern Ontario has seen this spring, could see farmers switch from corn to planting soybeans, said Rob Gamble, chief economist for Grain Farmers of Ontario.

“For the next 14 days it looks like the weather could turn a bit for the better. If the spring continues to be wet and delays corn planting, producers could potentially make that switch to soybeans,” he said.

Recently, China has impeded soybean imports from Canada. Reports stated inspections by Chinese officials that normally took a couple of days were now taking a few weeks. Also, China claimed to have found ants in at least one shipment.

“Officially, the Canadian government has not received information regarding any problems with Canadian soybean exports to China,” Davidson said.

Since the beginning of January, soybean exports have slowed to a trickle with only 11,000 tonnes sent to China, according to the Canadian Grain Commission. At the end of December, Canada shipped about 3.06 million tonnes to China, with over 666,000 tonnes exported that month alone.

Gamble indicated farmers could further alter their planting intentions because of uncertainty surrounding China.

“If the (situation) got worse with respect to China or the current price decline continues further, you can see changes for sure,” he said.

Davidson noted China imposed a 25 per cent tariff on U.S. soybeans, which forced a steep drop in prices between May and July 2018.

“Canada does have a basis, which lets our price vary a little bit from U.S. prices. We were severely impacted by the world prices on the market,” he said.

So far this week alone, soybean prices on the Chicago Board of Trade have been sliding downward. At the close of trading Thursday, soybeans lost more than eight cents to close at US$8.43 per bushel.

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

Table: Soybean planted-area projections for 2019 by province, in thousands of acres. Source: Statistics Canada.

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The federal government has stated there have been no export issues outside of canola.

“The current actions taken by China are limited to canola seed, and we have not received any indication of broader disruptions,” a spokesperson with Agriculture and Agri-Food Canada said via email.

“Aside from issues with canola seed, at the moment shipments of other grains, oilseeds and pulses continue to be accepted by China.”

However, Jim Wickett, a farmer at Rosetown, Sask. and board member with the Western Canadian Wheat Growers, stated otherwise.

“Shipments that are booked are still going ahead, but no new (bookings) are happening for the summer or the fall,” he said, commenting that China of late has been very hesitant to commit to any Canadian agricultural products.

Meanwhile, Soy Canada executive director Ron Davidson said there are a few matters to that need to be considered.

“We are not aware of any official restrictions,” he said in regards to China.

As of the end of February, Canada has exported nearly 3.06 million tonnes of soybeans to China this crop year, according to the Canadian Grain Commission (CGC). That’s almost two and half times more than in the 2017-18 crop year.

“We’re really happy to have sold that much to China,” Davidson said.

Canadian exports of soybeans to China dropped off during the winter, he noted, attributing that to most of the 2018 crop already being exported primarily to China, with little stock left in Western Canada.

As for Eastern Canada, he said the freeze-up of the St. Lawrence Seaway prevented more exports.

China often purchases South American soybeans once they are available, much to the detriment of other exporters including Canada, he said.

In November, Canada’s soybean exports to China were 1.34 million tonnes, dropping significantly to 666,200 tonnes in December. In January only 74,000 tonnes were exported and that number fell to 27,000 tonnes in February.

In other data from the CGC, wheat exports for the 2018-19 crop year have been far ahead of the previous crop year at 1.27 million tonnes compared to 444,000 tonnes. Exports in December peaked at nearly 440,000 tonnes, and then dropped to 115,000 tonnes in January, but improved to 158,300 tonnes in February.

Barley exports for the current crop year amounted to 938,500 tonnes by February. That month 229,500 tonnes were exported to China, up from 51,600 tonnes in January.

Peas were at approximately 716,200 tonnes so far this crop year, compared to 688,800 tonnes the previous year. In January, China accepted 83,600 tonnes, but that fell to 37,600 tonnes in February.

— Glen Hallick writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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Expanding market access and striking a better balance in the protein produced across the country were pegged in the study as the two biggest risks to the crop’s continued phenomenal growth The new funding will support the development of a profile of the industry and how it can respond to them and other risks identified in the study.

Ron Davidson, executive director of Soy Canada, said, “Although soybean production in Canada increased by a phenomenal 131 per cent during the last decade, and now ranks third in terms of farm cash receipts, the continued success of the sector is directly contingent upon overcoming a series of significant challenges.”

Responding to the risks is complicated by a natural division, based on geography, climate and access to markets, the study said. Production in Central and Eastern Canada is well established and largely aimed at food-grade beans while in Western Canada expanding production mostly goes for domestic or overseas crushing.

“Soy Canada plays a critical role in bringing together organizations across the value chains in order to advocate for continued growth and efficiency of the industry, using a cohesive, co-ordinated approach.”

The market access risks require ongoing, long-term work by Soy Canada toward “biotech trait global approvals, pesticide MRLs, new breeding technology acceptance,” the study said. As well there needs to be a harmonization of scientific standards in the Europe and Pacific trade deals and in any potential agreement with China.

Among the many items in this risk response, the report pointed out a need to increase Western Canada protein and content through supporting provincial efforts to increase protein content via research and grower awareness. Soy Canada needs to work with seed companies and grain buyers and crushers to determine standard protocol for testing and publishing protein and oil content by variety.

Soy Canada will also continue to support “current efforts led by Manitoba Pulse and Soybean Growers and Westman Opportunities Leadership Group to attract a crush facility to Western Canada.”

In 2016, Canada produced about 6.5 million tonnes of soybeans yielding about $2.8 billion in farm cash receipts. Between 2005 and 2014, both the industry’s production and seeded area increased by 92 per cent, farm cash receipts grew by 201 per cent and exports climbed by 190 per cent.

More than 31,000 farms grow soybeans, which is now the fourth-largest principal field crop by acreage in Canada, with approximately three million hectares.

In 2015, canola brought in 25.3 per cent of the cash receipts, wheat 20 per cent, then soybeans at 5.8 per cent, followed by corn.

Soybeans contribute $5.6 billion to Canadian GDP, which is almost three per cent of the total agriculture and agri-food food portion of $108 billion GDP.

Ontario accounts for 52 per cent of the national production, Manitoba 27 per cent and Quebec 16 per cent.

Crushing soybeans for meal and oil makes up the largest proportion of the crop usage. In 2016, 1.9 million tonnes of meal and 350 tonnes of oil were processed. In addition to crush soybeans, there is a food-grade market for soybeans.

The report urged Soy Canada to continue work with CropLife Canada on improved and maintained access to crop protection products and promote resistance management strategies for both crush and food-grade varieties.

It should also strive to bring together the value chain together “to stimulate targeted investment into research priorities for the benefit of the sector nationally.”

It needs to find new markets for Canadian soybeans such as expanding food-grade markets in Asia; and support provincial efforts to increase protein content through research and grower awareness and with seed companies and grain buyers and crushers “determine standard protocol for testing and publishing protein and oil content by variety.”

Soy Canada should also partner with Japan Grain Inspection Association to facilitate testing of Canadian varieties for quality of tofu and other relevant food products.

It should investigate with trait developers and soybean crushers in Ontario “whether they see an opportunity to launch new high oleic oil profiles in Canada as a pilot market.”

The report said that “compared to several soybean-producing U.S. states, Ontario and Quebec have some of the highest production costs while Manitoba and Saskatchewan have some of the lowest.

Compared to U.S. growers, Nova Scotia, Ontario, and Quebec have moderate average yields, while Manitoba and Saskatchewan have the lowest average yields.

While globally “Canada has lower average soybean production and average yield compared to the major soybean-producing countries of the U.S., Brazil and Argentina, Canada experienced one of the highest growth rates.” It also had the highest variability in production and yield between 2000 and 2016.

During 2014-16, Ontario and Michigan had the highest protein content in North America, while Manitoba had the lowest protein content in the comparison. Oil content was moderately high for Ontario and Quebec, but Saskatchewan had the lowest oil content.

Canada crushes only 27 per cent of its harvest compared to 35 to 49 per cent in the other countries and between 2012-16, imported 39 per cent of its meal supply and exported 60 per cent of its soybean production as oilseeds, as opposed to processing them and exporting them. Most of the soybean meal created in Canada goes for livestock feed.

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Production has grown quickly over the past several years, but still nobody has stepped forward to build a soybean crush plant in the region, according to Ron Davidson, executive director of Soy Canada, even though the economics are now in support of it.

He told the Senate agriculture committee a group of regional private sector representatives are promoting the idea, and the industry remains optimistic it will happen.

“We are confident that as soybean production continues to expand, someone will either construct a new plant or convert an old plant to do both canola and soy,” Davidson said.

Companies may have hesitated in the past because the size of the annual harvest didn’t justify a crushing facility, he said. With the expansion of production into Saskatchewan and Alberta from Manitoba, “There is enough volume there now.”

• Read more: Southwest boosters continue to pitch soy plant
• Read more: Soy Canada charts ambitious growth plan

Manitoba and Saskatchewan produced 2.7 million tonnes, accounting for 35 per cent of total Canadian soybean production in 2017, and the crop continues to creep westward.

“This year Alberta has joined Soy Canada because of the expansion of interest in soybean production into other western provinces,” Davidson said.

The lack of a crushing facility amounts to a threefold loss for the region, he said. Western Canada is not capturing the economic benefit it could bring. Soybeans must compete with other grains for rail transportation to export positions. Livestock producers are paying higher transportation costs for imported soybean meal, thereby reducing Canadian export market opportunities for meat.

“We have in Canada very large multinational crushers who are able to compete in Canada, the United States and other countries around the world, and I would imagine there is a little bit of reticence at this point to put up an independent crushing plant.”

A crushing plant “would also reduce the distance in which we’re transporting American soymeal into Canada now through those Canadian feed plants and Canadian operations,” he said. “We export about $5 billion of soy products, and I think we’re importing about $1.5 billion, both meal and oil. Particularly in Manitoba, it’s the meal that’s coming in, in large quantities for the pork production.

“Manitoba, and to some extent, Saskatchewan also, are huge producers of pork, which are major consumers of soybean meal,” he said. “According to the Manitoba pork producers, they believe they’re paying about $40 a tonne for importing meal from the United States and that they could have that much cheaper if they were able to source it locally. That would then make pork more competitive in the international markets which they export to.

“While the size of the transportation challenge in Western Canada isn’t going to be solved by one plant, it would help,” he said. “It would certainly make a difference in the soybean industry, which has experienced the same difficulties everybody else has had this year of getting product out of the Prairies.”

Most of the potential expansion in soybean production will come in Western Canada as new varieties are developed to suit the region, he said.

“There is room to grow in Eastern Canada but the rotations are pretty stable in Eastern Canada,” he said.

Eastern growers generally produce higher-protein soybeans because of a more favourable climate, he said. “Because of the warmer conditions around the Great Lakes, where soybeans first came into Canada, which does assist substantially in increasing the protein content.

“We’ve started discussions in the industry about making producers aware in Western Canada of how much it is costing them because of lower protein content and different ways of responding to that including, for example, publishing in a unique list the protein content of the different varieties that are available and encouraging the companies that are doing the research to place a higher emphasis on protein.

“Until now, the real focus has been on yield and there have been tremendous increases in yield but less of a focus on protein.

“Soybeans are not native to Canada,” he said. “The first report by Statistics Canada of commercially significant soybean production was in Ontario in 1941. Between 1941 and 2017, soybean production expanded from 5,900 tonnes on 10,900 acres in one province to 7.7 million tonnes on 7.3 million acres in eight provinces, all the way from Nova Scotia and Prince Edward Island to Alberta. Furthermore, soybean production is projected to double yet again during the next decade.

“At the same time, the average yield increased from 19.9 bushels per acre in 1941 to 44 bushels per acre in 2016. Stated differently, while extending constantly into new production frontiers, there has been an increase of 121 per cent in yield value per acre.”

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The privately-held Winnipeg grain firm recently announced it would not renew its funding commitments to the Canola Council of Canada, Flax Council of Canada and Soy Canada. The company said its total annual funding to the three groups totalled over $1 million, with the lion’s share going to the Canola Council.

A Richardson representative wouldn’t put a dollar value on its annual commitment to Soy Canada, but did say Tuesday its current funding commitment to the Ottawa-based organization expires at the end of March.

Asked about the company’s decision, Soy Canada didn’t respond directly to Richardson’s announcement or mention it by name, but did say the annual membership fees paid by industry members — such as seed companies, crushers and exporters — are based on sales or volume and vary from a minimum of $1,000 to a capped maximum of $25,000.

The annual contributions to Soy Canada from grower organizations, meanwhile, are instead based on volume of production and are not capped, the organization said.

Richardson’s soybean business is in seed and input sales and crop marketing; its oilseed crushing and processing operations are devoted to canola.

Soy Canada said Thursday via email it “values highly the participation of every member of the organization” and added that contributions by industry members “have a minimum multiplier effect of approximately 30-fold” when combined with funding from all sources.

Richardson, however, said Tuesday it now finds the value of membership in the three industry groups has fallen short of the financial cost and many of the issues each organization handles could instead be addressed on a “multi-commodity” basis by an overarching oilseed council.

Contending that it “currently has a strong value proposition,” Soy Canada said Thursday it’s nevertheless “committed to ongoing engagement with both existing and prospective member organizations and companies on potential opportunities for further refinement of all aspects of its operations.”

Members of the soy value chain have established a “collective and realistic target of a further doubling of production” by 2027, Soy Canada said, adding it “will invest in and act as a primary facilitator and catalyst for the realization of this target.” — AGCanada.com Network

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