World Grain - July 2018 - 6

FROM THE EDITOR

Turning point for Canadian
grain transportation?
EDITORIAL STAFF

N

ecessity is often the mother of invention. Put another way, it's amazing
how creative solutions can be found
ZKHQRQH¶VIHHWDUHKHOGWRWKH¿UH
Canada's grain transportation debacle of
 FHUWDLQO\ TXDOL¿HV DV D SUREOHP WKDW
UHDFKHGWKH¿HU\VWDJHDVOLWHUDOO\PLOOLRQV
of tonnes of grain that were scheduled to
move late last fall and early this winter sat
LGOHGXHWRVLJQL¿FDQWGHOD\VLQWKHFRXQWU\¶V
rail system.
The nation's two major rail companies -
&DQDGLDQ 1DWLRQDO DQG &DQDGLDQ 3DFL¿F ²
struggled with capacity constraints amid growing demand to ship Western Canadian grain.
Angry farmers were unable to sell as much of
the 2017 crop as they wanted, crimping cash
ÀRZ DKHDG RI SODQWLQJ LQ WKH ZRUOG¶V ODUJest canola-exporting country, which is also a
major exporter of wheat and barley. As of late
February, CN had met only 17% of hopper car
orders while CP had supplied 50%.
7KLVZDVQRWWKH¿UVWWLPHWKHUDLOV\VWHP
had failed the Canadian grain industry. In
2014, following a record grain harvest the
preceding fall, more than 60,000 grain cars
worth of orders were canceled, and it took
nearly all of 2014 to ship out the 2013 grain
that was designated for export.
5DLOURDGRI¿FLDOVEODPHGWKHH[WUHPHFROG
weather and the larger-than-expected grain
crop for the delay that year. Four years later, with crop production only slightly larger
than what was expected and a winter that
was harsh but not a major deviation from the
norm, the grain industry wasn't in the mood
for excuse-making. They wanted solutions.
With some nudging from the Canadian
government, which in May passed the
Transportation Modernization Act that incentivizes CN and CP to improve their grain
VKLSSLQJ HI¿FLHQF\ LW DSSHDUV WKH UDLOZD\
companies are determined to put their grain
transportation failures - and the negative
publicity that accompanied them - in the
rearview mirror. A key provision in the new
law is that the maximum revenue entitlement
system - which placed a ceiling on the total
revenue to be earned from moving grain by
rail in any crop year - has been eliminated,

6

giving CN and CP more incentive than ever
to add railcars dedicated to grain shipment.
In recent weeks, both CN and CP have unveiled strategies that they say will enable them
WR VKLS JUDLQ PRUH HI¿FLHQWO\ LQ WKH FRPLQJ
years. CP announced that it will invest more
than C$500 million to purchase new highcapacity grain hopper cars over the next four
years, with 500 expected to come into service
before the end of 2018. Meanwhile, CN has
ordered 1,000 high-cube grain hopper cars to
replace aging equipment and accommodate
the increasing Canadian grain yields.
While the rail companies and government
deserve credit for effectively addressing the
crisis in the short term, it remains to be seen
whether the long-term solutions are in place.
For the sake of Western Canadian grain producers, let's hope so.
From a broader view, Canada is not the
only major grain-producing country facing
transportation challenges. In Brazil, where
grain and oilseed production has skyrocketed in recent years, many grain transport
roads are still unpaved and very few railways
are available. A ray of hope in that situation
is China's announcement that it will contribute three dollars for every dollar invested by
Brazil for the China-Brazil $20 billion fund
for infrastructure projects. As the leading
consumer of Brazilian soybeans, China has a
vested interest in the success of this project.
Such news is encouraging, because
while massive investments have been
made around the world in recent years to
increase crop yield and produce more hightech planting and harvesting equipment, not
nearly enough has been
earmarked for logistical improvements to the
roads, railways and waterways that must carry
that larger volume of
grain. Until it is, unfortunate situations like the
one that occurred in Canada this past winter
will continue to arise.

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Morton I. Sosland
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Arvin Donley
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WORLD GRAIN (ISSN 0745-8991) Volume 36, issue 7,

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July 2018 / World Grain / www.World-Grain.com


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World Grain - July 2018

Table of Contents for the Digital Edition of World Grain - July 2018

World Grain - July 2018
Contents
FROM THE EDITOR - Turning point for Canadian grain transportation?
CALENDAR OF EVENTS
Global Grain South America looks at future flow of grain, oilseeds from region
News review - GM wheat detected in Canada
Dakota Specialty Milling expands in North Dakota
Bunge expands in Mexico with new wheat mill
United Grain, RIF plan new terminal in Russia
New cassava flour mill opens in Gambia
Bayer completes acquisition of Monsanto
Star of the West boosts presence in organics via acquisition
Canadian Pacific Railway to invest C$500 million in high-capacity grain hopper cars
Scoular acquires Farmers Grain Company in Colorado
Robert Cooper joins IFEEDER as executive director
CME launches options on Black Sea wheat, corn
Tiger Brands eyes expansion into North Africa
CN plans investment across Canada’s rail infrastructure
Alliance Feed breaks ground on new mill
Lansing leases export facility at Port of Houston
IGP appoints interim associate director
GRAIN MARKET REVIEW - Wheat
COUNTRY FOCUS - Canada
FEATURE: THE ANDERSONS SEEK STABILITY THROUGH CHANGE
FEATURE: BAY STATE FOCUSING ON HEALTH, WELLNESS
FEATURE: SHIPPING MARKETS IN CHAOS OVER TRADE WAR
FEATURE: AUSTRALIA’S POWER STRUGGLE
MILLING OPERATIONS - Using solar power to make flour
FEATURE: ENSURING A SAFE FLOUR SUPPLY
FEATURE - AUSTRALIA SUFFERING SEVERE DROUGHT
FEATURE: NORTH & SOUTH AMERICAN SUPPLIER PROFILES
SUPPLIER NEWS
WORLD GRAIN ARCHIVE
World Grain - July 2018 - World Grain - July 2018
World Grain - July 2018 - World Grain - July 2018
World Grain - July 2018 - 2
World Grain - July 2018 - 3
World Grain - July 2018 - 4
World Grain - July 2018 - Contents
World Grain - July 2018 - FROM THE EDITOR - Turning point for Canadian grain transportation?
World Grain - July 2018 - 7
World Grain - July 2018 - Global Grain South America looks at future flow of grain, oilseeds from region
World Grain - July 2018 - 9
World Grain - July 2018 - Dakota Specialty Milling expands in North Dakota
World Grain - July 2018 - United Grain, RIF plan new terminal in Russia
World Grain - July 2018 - Star of the West boosts presence in organics via acquisition
World Grain - July 2018 - Canadian Pacific Railway to invest C$500 million in high-capacity grain hopper cars
World Grain - July 2018 - Robert Cooper joins IFEEDER as executive director
World Grain - July 2018 - 15
World Grain - July 2018 - Tiger Brands eyes expansion into North Africa
World Grain - July 2018 - CN plans investment across Canada’s rail infrastructure
World Grain - July 2018 - IGP appoints interim associate director
World Grain - July 2018 - 19
World Grain - July 2018 - 20
World Grain - July 2018 - 21
World Grain - July 2018 - GRAIN MARKET REVIEW - Wheat
World Grain - July 2018 - 23
World Grain - July 2018 - COUNTRY FOCUS - Canada
World Grain - July 2018 - 25
World Grain - July 2018 - 26
World Grain - July 2018 - 27
World Grain - July 2018 - FEATURE: THE ANDERSONS SEEK STABILITY THROUGH CHANGE
World Grain - July 2018 - 29
World Grain - July 2018 - 30
World Grain - July 2018 - 31
World Grain - July 2018 - 32
World Grain - July 2018 - 33
World Grain - July 2018 - 34
World Grain - July 2018 - 35
World Grain - July 2018 - 36
World Grain - July 2018 - 37
World Grain - July 2018 - FEATURE: BAY STATE FOCUSING ON HEALTH, WELLNESS
World Grain - July 2018 - 39
World Grain - July 2018 - 40
World Grain - July 2018 - 41
World Grain - July 2018 - 42
World Grain - July 2018 - 43
World Grain - July 2018 - 44
World Grain - July 2018 - 45
World Grain - July 2018 - 46
World Grain - July 2018 - 47
World Grain - July 2018 - FEATURE: SHIPPING MARKETS IN CHAOS OVER TRADE WAR
World Grain - July 2018 - 49
World Grain - July 2018 - 50
World Grain - July 2018 - 51
World Grain - July 2018 - 52
World Grain - July 2018 - 53
World Grain - July 2018 - FEATURE: AUSTRALIA’S POWER STRUGGLE
World Grain - July 2018 - 55
World Grain - July 2018 - 56
World Grain - July 2018 - 57
World Grain - July 2018 - 58
World Grain - July 2018 - 59
World Grain - July 2018 - MILLING OPERATIONS - Using solar power to make flour
World Grain - July 2018 - 61
World Grain - July 2018 - 62
World Grain - July 2018 - 63
World Grain - July 2018 - FEATURE: ENSURING A SAFE FLOUR SUPPLY
World Grain - July 2018 - 65
World Grain - July 2018 - 66
World Grain - July 2018 - 67
World Grain - July 2018 - FEATURE - AUSTRALIA SUFFERING SEVERE DROUGHT
World Grain - July 2018 - 69
World Grain - July 2018 - 70
World Grain - July 2018 - 71
World Grain - July 2018 - 72
World Grain - July 2018 - 73
World Grain - July 2018 - FEATURE: NORTH & SOUTH AMERICAN SUPPLIER PROFILES
World Grain - July 2018 - 75
World Grain - July 2018 - 76
World Grain - July 2018 - 77
World Grain - July 2018 - 78
World Grain - July 2018 - 79
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World Grain - July 2018 - SUPPLIER NEWS
World Grain - July 2018 - 91
World Grain - July 2018 - 92
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World Grain - July 2018 - 94
World Grain - July 2018 - 95
World Grain - July 2018 - 96
World Grain - July 2018 - WORLD GRAIN ARCHIVE
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http://digital.world-grain.com/sosland/wg/2008_09_01
http://digital.world-grain.com/sosland/wg/2008_08_01
http://digital.world-grain.com/sosland/wg/2008_07_01
http://digital.world-grain.com/sosland/wg/2008_06_01
http://digital.world-grain.com/sosland/wg/2008_05_01
http://digital.world-grain.com/sosland/wg/2008_04_01
http://digital.world-grain.com/sosland/wg/2008_03_01
http://digital.world-grain.com/sosland/wg/2008_02_01
http://digital.world-grain.com/sosland/wg/2008_01_01
http://digital.world-grain.com/sosland/wg/2007_12_01
http://digital.world-grain.com/sosland/wg/2007_11_01
http://digital.world-grain.com/sosland/wg/2007_10_01
http://digital.world-grain.com/sosland/wg/2007_09_01
http://digital.world-grain.com/sosland/wg/2007_08_01
http://digital.world-grain.com/sosland/wg/2007_07_01
http://digital.world-grain.com/sosland/wg/2007_06_01
http://digital.world-grain.com/sosland/wg/2007_05_01
http://digital.world-grain.com/sosland/wg/2007_04_01
http://digital.world-grain.com/sosland/wg/2007_03_01
http://digital.world-grain.com/sosland/wg/2007_02_01
http://digital.world-grain.com/sosland/wg/2007_01_01
http://digital.world-grain.com/sosland/wg/2006_12_01
http://digital.world-grain.com/sosland/wg/2006_11_01
http://digital.world-grain.com/sosland/wg/2006_10_01
http://digital.world-grain.com/sosland/wg/2006_09_01
http://digital.world-grain.com/sosland/wg/2006_08_01
http://digital.world-grain.com/sosland/wg/2006_07_01
http://digital.world-grain.com/sosland/wg/2006_06_01
http://digital.world-grain.com/sosland/wg/2006_05_01
http://digital.world-grain.com/sosland/wg/2006_04_01
http://digital.world-grain.com/sosland/wg/2006_03_01
http://digital.world-grain.com/sosland/wg/2006_02_01
http://digital.world-grain.com/sosland/wg/2006_01_01
http://digital.world-grain.com/sosland/wg/2005_12_01
http://digital.world-grain.com/sosland/wg/2005_11_01
http://digital.world-grain.com/sosland/wg/2005_10_01
http://digital.world-grain.com/sosland/wg/2005_09_01
http://digital.world-grain.com/sosland/wg/2005_08_01
http://digital.world-grain.com/sosland/wg/2005_07_01
http://digital.world-grain.com/sosland/wg/2005_06_01
http://digital.world-grain.com/sosland/wg/2005_05_01
http://digital.world-grain.com/sosland/wg/2005_04_01
http://digital.world-grain.com/sosland/wg/2005_03_01
http://digital.world-grain.com/sosland/wg/2005_02_01
http://digital.world-grain.com/sosland/wg/2005_01_01
http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
http://digital.world-grain.com/sosland/wg/2004_09_01
http://digital.world-grain.com/sosland/wg/2004_08_01
https://www.nxtbookmedia.com