NOVEMBER 14, 2000
AAFC ADMITS LOWEST WHEAT SUPPLIES IN 30 YEARS
SASKATOON, Sask. World [wheat] carry-out stocks are expected to decline sharply, to 111 Mt, with the stocks-to-use (S/U) ratio falling under 19%, the lowest recorded in 30 years. The preceding appears in the November 3, 2000 issue of Agriculture and Agri-Food Canada's (AAFC's) Bi-weekly Bulletin.
In addition to record-low world wheat stocks-use ratios, ratios for world total grains are at the fourth lowest level in 40 years--with total world reserves below 60 days.
The NFU urges journalists to apprise themselves of the real situation in world grain supplies and to question government officials when they blame low grain prices on oversupply. The media is further encouraged to press government officials to explain the causes of the current farm income crisis.
NFU President Cory Ollikka reiterated that While the lowest stocks-use ratio in 30 years may not indicate a shortage, it is difficult to argue that it indicates a surplus, and impossible to argue that it indicates a surplus of such burdensome proportions that we should expect the worst income crisis since the 1930s.
Ollikka concluded: "In admitting that the data does not support the contention that there is a grain surplus, Agriculture Canada has taken an important first step. However, government currently has no credible explanation of the causes of the farm income crisis. No farmer can believe the government is serious about solving this crisis if the government can't even explain the cause."
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For More Information:
Cory Ollikka, NFU President: (780) 383-2148
Darrin Qualman, Exec. Sec.: (306) 652-9465