In this file:
∑ Canada's Edge in Penetrating High Value Export Markets
∑ Pacific Trade Deal Spurs Canadian Farm Sales to Japan as U.S. Watches
Canada's Edge in Penetrating High Value Export Markets
Joseph Kerns - Kerns and Associates
Farmscape for January 11, 2019
The President of Kerns and Associates suggests Canada has an edge in terms the potential to gain market share in higher value export markets.
"Tariffs, Trade, & Trepidation-The Implications on the Pork Sector Now and Into the Future" was discussed yesterday as part of the Banff Pork Seminar.
Joseph Kerns, the President of Kerns & Associates, says roughly 25 percent of U.S. pork production is exported while two thirds of Canadian production is exported so Canada is much more export dependent and exports markets especially to Pacific Rim countries that are adding population, adding income and upgrading diets are key to future growth.
Clip-Joseph Kerns-Kerns & Associates:
I applaud the Canadian producers for really being value added and listening to their consumers.
When you spend time overseas in these high value markets, specifically in Japan, you'll see color scores that are much more closely adhered to, you've got slower line speeds in Canada relative to the United States, you do a lot more sorting, you do a lot more precision as far as the packaging is concerned to meet that consumer demand.
The high value production of Canada I see continuing to gain a foothold and even usurping the United States as far as volume is concerned into the highest value markets, namely Japan but the United States being a commodity play by en large also benefitting from a global GDP that continues to increase.
Again largely these Pacific Rim countries that have larger populations, larger incomes and no religious restrictions that keep them away from the pork industry.
When you take a look at some other areas in Asia you're going to have some Muslim populations that continue to rise up and more than likely that benefits the poultry side of it.
But clearing some poultry off the decks that doesn't compete with pork products is also a benefit so I see a lot of opportunities regardless of the sector you're currently in.
Pacific Trade Deal Spurs Canadian Farm Sales to Japan as U.S. Watches
By Rod Nickel, Reuters
via U.S. News World Report - Jan. 10, 2019
WINNIPEG, Manitoba (Reuters) - At the Canadian embassy in Tokyo last month, beef promoters flew in a chef from Canada to cook New York strip steaks for hungry Japanese importers and restaurant suppliers.
The annual Canadian beef buffet reception attracted 126 people, up sharply from the usual 30 to 40.
A trade deal among Pacific nations - called the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) - took effect on Dec. 30 among the first six of 11 member countries to ratify it, including Canada, Japan and Australia.
CPTPP's real prize, Canadian exporters say, are reduced Japanese tariffs for beef, pork, wheat and canola oil. Japan is the world's third-largest beef importer and seventh-largest wheat buyer, often buying top-quality supplies to meet consumer demand for soft, white breads and beef raised on grain not grass.
For Canada, following a year of volatile relations with the United States and China, the deal offers a rare opportunity to seize market share from the United States, which withdrew from the pact after President Donald Trump took office.
Canada's opportunity illustrates the risks of Trumpís drastic trade actions. Farmers are key Trump supporters, but they have been among the hardest-hit from a trade war with China.
U.S. beef packers such as Tyson Inc and National Beef Packing Co also stand to lose, while Canadian grain exporters Richardson International and Viterra [VILC.UL] may gain.
At the Tokyo beef buffet, enthusiasm about Canadian beef transcended borders.
"The interest was as high as I've ever seen," said Dennis Laycraft, executive vice president of the Canadian Cattlemen's Association, who has been visiting Japan since the 1980s. "This new agreement is one of the most significant opportunities we've seen since the original NAFTA (North American Free Trade) agreement was signed."
Among those sampling Canadian beef were buyers from the Japanese units of Costco Wholesale Corp, Cargill Inc [CARG.UL] and JBS SA [JBSS3.SA], Laycraft said. Costco declined to comment and JBS did not respond.
In a statement, Cargill said it advocates for...