Southeasst Agri News - April 20, 2012

Issue No. 149

April 20, 2012

A Supplement to the Southeast Trader Express

Placid Lake

The Rafferty reservoir was a scene of spring calmness on April 14 as local visitors noted how much lower the water line is this spring compared with the same time frame last year.

Stop in and see our 2012 Line-up!

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Page 2

SOUTHEAST AGRI NEWS, FRIDAY, APRIL 20, 2012

Sask. is new leader in Cattlemen rooting for agri-food exports For the first time ever, Saskatchewan has exceeded $10 billion in agri-food exports in a single year and that was last year. The province now surpasses Ontario as the top agri-food exporting province in Canada.

“Saskatchewan farmers and ranchers are agricultural leaders, both at home and abroad and continue to provide safe, reliable food to feed the world’s growing popula-

tion,” Agriculture Minister Bob Bjornerud said. “This significant growth in our agrifood exports exemplifies the importance of agriculture to our economy and is part of the Saskatchewan advantage that our producers have helped create.”

In 2011, the province’s top exported agri-food products included canola, canola oil and non-durum wheat.

Canola continues to have

a major impact on the province’s economy with canola seed overtaking non-durum wheat as the top agriculture export commodity. In the last five years, canola seed exports have increased by 250 per cent from $856 million in 2007 to more than $2.1 billion in 2011.

“We’ve worked hard to expand opportunities for farmers in both traditional and emerging markets like India and China,” Enterprise

Minister Jeremy Harrison said. “Saskatchewan is a world leader in food production and that importance is only going to increase as the world population increases.”

The top five markets for Saskatchewan agriculture products are the United States, China, Japan, Mexico and India. Since 2007, Saskatchewan agri-food exports have increased from $6 billion to $10 billion.

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The Canadian Cattlemen’s Association (CCA) said in late March they were pleased that Canada and Japan agreed to initiate negotiations that could lead to an economic partnership agreement (EPA).

The CCA said that Japan is Canada’s fifth largest trading partner and also an important political partner.

“Japan is a highly valued trading partner and this agreement will strengthen our economic partnership,” said CCA past president Travis Toews.

“An EPA with Japan would benefit the highly exportdependent Canadian beef industry provided the negotiations address longoutstanding issues and

barriers.”

The CCA strongly encourages an EPA between the two countries which would provide a full tariff free access for Canadian beef.

“A successful agreement with Japan could increase the value of Canada beef exports to over $275 million annually and more importantly will increase the value of every animal we produce,” Toews said from Tokyo where he had accompanied Prime Minister Stephen Harper on the Asia trade mission along with Ministers Gerry Ritz of Agriculture and AgriFood Canada, Ed Fast of International Trade and John Baird, Foreign Affairs.

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2012 RAPTOR SUPERCREW 4x4 only 1,075 kms ........................$64,995 2011 FORD RAPTOR CREW CAB 4x4 .........................................$59,995 2011 EDGE LIMITED ALL WHEEL DRIVE, fully loaded with Navigation & moon roofs, only 26,000 kms .....................................$38,995 2011 LINCOLN NAVIGATOR 4x4, loaded with only 20,000 kms...... SOLD 2011 EXPEDITION MAX, loaded with Navigation, 23,000 kms ......$51,995 2011 F350 LARIAT CREW CAB 6.7L, diesel, loaded with leather, only 21,000 kms ..............................................................................$49,500 2010 F-150 XLT SUPERCAB 2 wheel drive, 56,000 kms .................SOLD 2010 F150 FX4 SUPERCREW 4x4 OFF ROAD, only 45,000 kms .................................................................................SOLD 2010 F150 PLATINUM SUPERCREW 4x4, loaded with 30,000 kms...............................................................................$41,900 2010 F350 CABELLA CREW CAB 4X4, 6.4L diesel, loaded .........$30,900 2009 NISSAN TITAN PRO 4X4, Fully loaded with only 60,000 kms ..........................................................................SOLD 2009 DODGE RAM LARAMIE QUAD CAB 4X4, loaded with 142,000 kms ....................................................................................$22,995 2009 ESCAPE XLT 4x4, 3.0L V6, loaded, with 100,000 kms .........$17,995 2009 F150 PLATINUM SUPERCREW 4x4, loaded, 73,000 kms ......SOLD 2008 EXPLORER SPORTRAC LIMITED 4x4 4.6L, V8, loaded, 80,000 kms ......................................................................................$23,995 2008 EXPEDITION LIMITED MAX 4x4, fully loaded with 126,000 kms.............................................................................$29,995 2008 GMC 2500 SLE CREW CAB 4x4, 6.0L, V8, 86,000 kms ......$24,995 2008 EDGE LIMITED, All wheel drive, loaded with Navigation and Power Roof, 108,000 kms ........................................................$21,995 2007 ESCAPE XLT 4x4 only 90,000 kms .......................................$14,500

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Published monthly in Southeast Saskatchewan by the Prairie Newspaper Group., a subsidiary of Glacier Media. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your personal information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers. Our subscription list may be provided to other organizations who have products and services that may be of interest to you. If you do not wish to participate in such matters, please contact us at the following address: The Southeast AgriNews, Box 730, Estevan, Saskatchewan, S4A 2A6; or phone (306) 634-2654. For a complete statement of our privacy policy, please go to our Website at: www.estevanmercury.ca The Southeast AgriNews is owned and operated by Boundary Publishers Ltd., a subsidiary of Glacier Ventures International Corp.

We acknowledge the financial support of the Government of Canada through the Publications Assistance Program toward our mailing costs.

Editor: Norm Park Publisher: Peter Ng Advertising Manager: Jan Boyle email: normpark@estevanmercury.ca 68 Souris Avenue, Estevan Phone: 634-2654 Fax: 634- 3934

SOUTHEAST AGRI NEWS, FRIDAY, APRIL 20, 2012

Page 3

WIT shows first operational loss in 26 years The last time the Weyburn Inland Terminal (WIT) showed a net loss on operations, oil was selling for under $29 a barrel and was expected to sink to $25 while more than half the southeast oilpatch operations were shut down.

The year was 1985, just nine years after the WIT had opened for business.

From then on, it was year after year of profits, except for now, said Claude Carles, president of WIT, who reported a minor $246,000 consolidated loss for 2011 operations due mainly to flood conditions in this part of the province last summer and therefore a huge reduction in seeded acreage this past crop year.

The company said flooding impacted all business units last year with

only 20 to 30 per cent of the normal acres being seeded.

That meant both grain handling and input sales were down drastically compared with other years.

While there was a loss on operations, the company still managed to pay dividends of $1.35 million to shareholders, it was noted in the financial statement that was released in late March.

Grain volumes will naturally continue to be lower in 2012, until the new crop comes off. Expectations are for a strong spring in the crop inputs side of the business as farmers will look to maximize production after two straight years of reduced acreage.

“Our staff worked hard throughout the year to help our customers

manage these conditions.

The continuing strong support of our customers has allowed WIT to be a profitable farmer owned and directed company for many years,” said Carles.

“This is the first time since 1985 that we have not been profitable, and clearly the weather events last year were insurmountable both for farmers and WIT.” “Our oilseed program and commitment to cleaning and blending our customers’ grain to improve the grade, especially on grain held over from previous year’s production, resulted in our ability to maintain our grain shipping program at 70 per cent of the previous year, even with a 75 per cent smaller crop in our trading area,” said CEO Rob Davies.

“Our ethanol business at NorAmera was also affected by the flooding and other operational issues; however production stability has improved significantly over the past several months and improving oil prices are a positive sign for 2012.

There are still improvements to be made but we are optimistic about this year for NorAmera. Our many diversification efforts have given us the ability to balance good

and bad years with average WIT profitability over the previous 10 years of $3.46 million,”he said.

“Last year affected us the same way it affected our farm customers ... very little crop, very little opportunity.

Together, we recognize that these years can happen, and together we have built enduring operations that will move forward into 2012, recognizing 2011 for the year that it was,” said Davis.

WIT will continue to work toward a positive future in agriculture and supports students, customers, and local communities and organizations in southeast Saskatchewan. Donations to these various concerns exceeded $70,000 in 2011.

WIT said they believe there is a solid foundation for the business going forward as the world population continues to grow and demand more, better quality food.

SOUTHERN PLAINS CO-OP PETROLEUM/ NOW OPE AGRO CENTRE N

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A bull in the pasture enjoying the buffet offerings of new grass that is beginning to green up as Saskatchewan turns its attention to spring.

AT NOON

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WEYBURN INLAND TERMINAL LTD. Canadian Wheat Board Delivery Contract Summary PERCENTAGES

CALLED: 2011-2012 Crop Year Red Spring #1 (13.5 % & higher) Red Spring #1 (13.4% & lower) Red Spring #2 (13.5% & higher) Red Spring #2 (13.4% & lower) Red Spring #3 (13.5% & higher) Red Spring #3 (13.4% & lower) Red Spring #4 COW CPS Red 1 & 2 CPS White Red Winter 1 & 2 Extra Strong 1 & 2 Durum #1 (13% & higher) Durum #1 (12.9% & lower) Durum #2 (13% & higher) Durum #2 (12.9% & lower) Durum #3 Durum #4 Durum #5

SERIES “A” CALLED

– 100% 100% 100% 100% 100% 100% 100% – 100% – 100% – 100% 100% 100% 100% 100% 100% –

ACCEPTED

– 100% 100% 100% 100% 100% 100% 100% – 100% – 100% – 100% 100% 100% 100% 100% 100% –

SERIES “B” CALLED

– 100% 100% 100% 100% 100% 100% 100% – 100% – – – – – – – – –

WIT STOCK QUOTATIONS

ACCEPTED

– 100% 100% 100% 100% 100% 100% 100% – 100% – – – – – – – – –

Week Ending

52-wk low*

April 13, 2012

$13.25

52-wk high $13.45

*Close

Volume

Yield**

$13.3

0

0.38%

*Based on trading price of a minimum of one board lot which is equal to 100 shares. **Based on the semi-annual dividends paid in the previous 12 months and the current market price.

Contact: Union Securities Suite 102 - 2002 Cornwall St., Regina, Sask. S4P 2K5 (306) 565-4462 • Toll Free 1-877-525-7650

WIT Website www.wit.ca WIT Weyburn (1-800-552-8808) Grain buying, CSR (customer service) and marketing will be closed April 24th - 12:00 - 5:00 pm & April 25th - 7:00 am - 1:00 pm

Regular delivery hours are 7:00 a.m. to 8:00 p.m. OPEN MONDAY TO SATURDAY CROP INPUT & PELLET HOURS ARE: Mon. - Fri.: 8 a.m. - 5 p.m.

WIT Weyburn administration ofÀce hours are: 7:30 a.m. - 5:00 p.m. Monday thru Friday WIT Lake Alma is open Monday thru Friday - 8:00 a.m. - 5:00 p.m.

WIT closed at 5 pm on April 20, 2012 in order for our staff to attend our AGM.

*Contract terminations* please contact the ofÀce for further information.

Page 4

SOUTHEAST AGRI NEWS, FRIDAY, APRIL 20, 2012

South Korea’s doors open once more for Canadian beef Market access to South Korea for Canadian beef has been restored.

The breakthrough occurred in mid-January, said the Canadian Cattlemen’s Association in extending

words of congratulations to the Canadian government for achieving this long-sought return to a strong market.

The process to restore access for Canadian beef was agreed to in June of 2011

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by the Canadian and South Korean governments, but was just recently termed successfully completed around January of this year. The contract was sealed with final approval letters from Korea that were signed January 20.

With the receipt of these letters, Canadian beef and beef products from cattle under 30 months of age can be exported to South Korea immediately.

The agreement was reached outside of the World Trade Organization (WTO) dispute that was launched by Canada in 2009.

CCA president Travis Toews thanked Agriculture and Agri-Food Minister Gerry Ritz and International Trade Minister Ed Fast for their diligence on this particu-

lar file. He noted that efforts are expected to continue in South Korea to recapture access for over-30-month beef as well, in line with World Organization for Animal Health science-based guidelines. “The return of safe, high-quality Canadian beef to South Korea after nearly a decade is a significant achievement and one that’s been a long time coming,�

Toews said. “The CCA agreed to this process as an alternate solution to the WTO dispute panel report in order to get Canadian beef moving into South Korea more quickly.

It was the right call and we thank ministers Ritz and Fast for seeing this through to a successful conclusion.�

The CCA monitored South Korea’s progress closely and was fully prepared to recommend the government of Canada to request the WTO to issue its report should the process fail. Canada retains the ability to resume the panel should problems with the implementation emerge in the weeks ahead, but we expect that South Korea will resume its former position as a lucrative market for Canadian beef.

Canadian beef exports to South Korea are estimated to be $30 million by 2015.

With Canadian beef once again headed for South Korea, the CCA is focused on completing negotiations to establish a Canada-Korea Free Trade Agreement.

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