By Dori Modney with files from Alberta Wheat Commission

Prairie Wheat Commissions set record straight on wheat prices and food costs

Dec 15, 2020 | 6:03 PM

CALGARY, AB. –– A recent Canadian Press article regarding the impact of the price of wheat on rising food prices is causing concern for three prairie wheat organizations.

The article reported on Canada’s Food Price Report 2021, which projects that bakery products are likely to rise 3.5 to 5.5 percent in 2021.

A quote within the article says, the cost of wheat rose 50 percent in the past 18 months, with this increase being a significant driver of food cost increases.“

However the Wheat Commissions for Alberta and Saskatchewan, and the Manitoba Crop Alliance, indicate the quote in no way reflects the reality of producer prices in Western Canada or food manufacturers’ costs.

The most recent data from Statistics Canada shows that the average western Canadian price received at the farm gate for wheat (excluding durum) was 3.3 percent lower in October 2020 than it was in April 2019. The most recent data from Statistics Canada’s Farm Product Price Index also shows a decrease in the value of grains of 2.7 percent from April 2019 to September 2020.

NDTR

First Nations, Inuit and Metis leaders say work lays ahead on road to reconciliation

19h ago

Tapestrama Tension

Russia-Ukraine war dividing local cultural connections

Sep 29, 2024

Raiders lose 5-4

Second period woes plague Raiders against Broncos

Sep 29, 2024

Brett Halstead, the Saskatchewan Wheat Chair, says the price quoted in the interview are misleading and do not accurately reflect on-farm prices being received by wheat producers.

“Wheat producers appreciate that several factors influence store shelf prices, but the cost of wheat is not a major factor in the rise of food costs. Canadian consumers have one of the lowest costs for food relative to their incomes while enjoying one of the safest and highest quality food supplies in the world.”

Canada produces a large surplus of wheat each year, with ample wheat supplies to meet domestic demand, even though the majority of Canadian-grown wheat is exported to global markets.

To prove a point, it`s noted that a bushel of #1 CWRS wheat was worth $5.66 in January 1975, while in January 2020, that same bushel was worth $6.22.

When adjusted for inflation, that 1975 bushel of wheat should be worth $26.12 today.

That`s a difference of 56-cents over 45 years and shows wheat prices have not kept up with inflation and indicated continued increases in productivity on the part of the producer.

The three wheat commissions, would like to see the Canadian Press correct the statement in the original article, as it`s important to accurately reflect the impacts of various factors on food price changes, clearly illustrating the cost of wheat to food manufacturers as well as the returns to wheat producers.