(File photo/farmnewsNOW)

By Angela Brown

2020 production year

Global demand fueled strong year for ag exports

Feb 20, 2022 | 1:38 PM

While the 2021 crop production was down due to the drought, the province including the North West region saw a boon in 2020 resulting in strong export numbers the year after.

Exports reached a record a $17.5 billion value in 2021, up almost seven per cent from $16.4 billion in 2020, another record year, the province announced.

“It’s fantastic news, and shows that we are on the right track for trying to hit our growth targets,” Saskatchewan Ministry of Agriculture director of market development Stephen Norgate told battlefordsNOW.

Saskatchewan’s top three markets are the U.S., China, and Japan, to which the province exported more than $1 billion each worth of agricultural products in 2021. For the U.S. alone, the province exported $4.3 billion worth of product.

Norgate said strong demand and a reduced supply in global markets resulted in higher prices for commodities, and a boost for Saskatchewan exports in 2021.

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“Saskatchewan exported over $200 million in agri-food products to each of 18 different markets internationally,” he said. “So not only do we have very strong trading partners in our top three [markets], but we have lots of growing trading partners as well throughout the world.”

For the top exported commodities, canola seed was the highest, followed by canola oil, non-durum wheat, lentils, durum, and dried peas, seeing over a billion dollars each in exports.

Saskatchewan exported more than $2.6 billion last year in each of its key crop product sectors, cereal grains, oilseeds, pulses, and edible oils.

Norgate noted that Saskatchewan has a strong canola-crush sector and exports about 1.5 million metric tonnes annually of canola oil. In 2021 it saw a 50 per cent increase in canola oil exports, from $1.8 billion in 2020 to $2.7 billion in 2021.

“That was a significant increase to show that there is a growing demand for vegetable oil… It was seen in the increase in prices,” Norgate said.

Korea is a growing market for Saskatchewan’s canola oil, and saw exports increase by over 100 per cent, from $71 million in 2020 to $146 million in 2021.

Norgate anticipates the 2022 exports will be down from the year prior, reflecting the impact from the drought on 2021 production.

“Part of our exports in 2021 was for the previous crop year where we had a very strong crop…,” he said. “We are expecting in the 2022 calendar year for our exports to drop off, as a result of the challenging growing season last year.”

Norgate went on to say the province and Saskatchewan Agriculture plan to keep developing export markets for local agricultural products.

“We are helping to connect with international buyers, and grow Saskatchewan and Canada’s reputation as a strong reliable supplier of agri-food commodities around the world through our new trade offices,” Norgate said. “We hope to open up more export opportunities through these trade offices in the years ahead.”

Angela.Brown@pattisonmedia.com

On Twitter: @battlefordsnow