CWB recently dispatched its historic first shipload of canola from the Port of Prince Rupert. The cargo of 42,000 tonnes of Prairie canola is now travelling aboard the vessel Tai Health, enroute to customers in Japan.
Changes to the western Canadian grain-marketing system, implemented by the federal government this year, include provisions for CWB to market canola for the first time in history - expanding its crop mix beyond wheat, durum and malting barley.
"We are very pleased to have successfully executed our first export sale of canola," said CWB president and CEO Ian White, who travelled to Japan this month to meet with canola buyer Zen-Noh, the Japanese agricultural co-operative that has made CWB its preferred supplier of Canadian grain.
"We are encouraged by the positive response of valued customers like Zen-Noh," he added. "CWB has many marketing advantages, including its long experience with international customers and grain logistics. Farmers who sign CWB contracts benefit from CWB's long standing marketing relationships and access to premier markets".
Mr White said strong performance from CN Rail and Prince Rupert Grain Terminal helped deliver this canola to port on schedule. Because the sale was executed through Prince Rupert, all canola was sourced through elevators located on CN lines. White said the canola in this first vessel is a mix of cash purchases from companies and farmers, as well as canola committed by farmers to the CWB pool.
Mr White said pooling provides farmers the certainty of a good average return that will capture market rallies during the year. For the first time in history, Canadian farmers have the opportunity to pool canola as part of their overall marketing and risk-management strategy. CWB's canola Harvest Pool runs from harvest to 30 June 2013.
"Our approach in this first year as a player in the canola market has been cautious to ensure our approach to sourcing, shipping and risk management is well-structured to work with a new product," Mr White said. "The results have been very encouraging."
Mr White said CWB is committed to canola marketing for the long term and to demonstrating its value to both Prairie farmers and canola buyers, many of whom are long-term CWB customers for other grains. CWB continues to evaluate possibilities for expanding its marketing to other crops.
