Low Cereal Yields in Alberta Means High Cereal Prices Will Continue | The Canadian News

The combines are now parked and fall field work is underway.

Geoff Backman of the Alberta Wheat and Barley Commission said it was a difficult year for many farmers who were plagued by drought conditions.

“They really hope it will rain next year because two years of this would be financially devastating,” Backman said.

The crops are now in the bin and the numbers show that the yields have dropped significantly.

“For the most part, we hear that regionally, yields are between 75 and 50 percent of what they experienced last year and that’s not the amount of grain we’re used to having,” Backman added.

the five-year provincial performance index This year’s sample is 37 percent below the five-year averages. Demand has increased and so have prices. At this time last year, feed barley in southern Alberta was $ 5.50 a bushel; now it costs almost $ 9 a bushel.

“These are the highest prices I’ve ever seen, but it’s not just me. I am young compared to some of the farmers and some of our members, and they also report that these are some of the highest prices they have ever seen in their careers, “added Backman.

High cereal prices have a direct impact on the livestock industry, specifically on beef cattle.

“It takes a big bite out of calf prices, so if you’re talking about $ 4 barley versus $ 8 barley, roughly for every dollar increase in barley price, it’s about 20 cents off the price. calves, “said Brian Perillat, Canfax manager and senior analyst.

Perillat said that many livestock producers cannot find the grain they need in Canada and rely on food south of the border.

“We will import a significant amount of corn. It should start flowing to the southern prairies or Alberta in November and that will be the major food source, “he added.

Backman said the cereal shortage is global.

According to Agriculture and Agrifood Canada, wheat and barley have fallen from an estimated world supply of 12 million metric tons to eight million tons this year.