Friday, February 17, 2017

Pea, lentil exports to India threatened

India is threatening to cut off imports of Canadian peas and lentils, possibly because it has had a huge harvest of its own.

India insists that all imports be fumigated with methyl bromide or a pesticide that is equally effective.

Canada does not allow the use of methyl bromide because of the environmental threat to the ozone layer.

But Canada says cold Prairie winters kill pests.

At issue is exports worth about $1.5 billion in 2015, and a market for a third of Canada’s exports of peas and lentils.

Already one shipping company has refused to transport a load to India because of uncertainty surrounding the issue.

3G makes bid for Unilever

3G Group of Brazil, which controls Kraft-Heinz and Tim Horton’s, has made a bid for Unilever, one of the world’s largest food companies headquartered in the Netherlands.

But Unilever says there is no merit in the proposal and rejected the offer worth $143 billion US.

Unilever said it had received an offer of $50 per share, made up of $30.23 in cash and the remainder in stock in the new group, representing a premium of 18 per cent.

“This fundamentally undervalues Unilever,” it said today.

Deere profits surprise

Deere & Co. profits are higher than expected because the company charged more for its farm equipment.

Net income attributable to Deere fell to $193.8-million US, or 61 cents per share, in the first quarter ended Jan. 29, but that was a lot better than the typical analyst’s forecast of 55 cents per share.

A year ago net income was $254.4-million, or 80 cents per share.

Total net sales fell about 1.5 per cent to $4.70-billion.

Thursday, February 16, 2017

FCC unveils new loan program for young entrepreneurs

Farm Credit Canada announced a new Young Entrepreneur Loan program Thursday
that offers up to $1 million to borrowers under 40 to invest in agriculture retail, manufacturing and food processing.

The loan can be used for the purchase or improvement of agriculture-related assets
or the purchase of shares in an agriculture-related business, including those
in the agri-food sector. 

The FCC said in a news release “this access to capital will allow
these businesses to take advantage of new opportunities, grow the economy
and create more middle class jobs.

Federal Agriculture Minister Lawrence MacAulay said “the Canadian agriculture and
agri-food sector needs more young people to get engaged, because they bring
the energy and innovative ways of thinking that grow the sector and
keep it on the cutting edge.”

FCC president and CEO Michael Hoffort said “from production to food processing and retail, Canada’s agriculture industry needs the ideas, passion and energy of our
young people. And as they enter into this dynamic industry, FCC is committed to
helping them succeed.

“By providing specialized loans for young farmers and entrepreneurs, we are
helping the next generation get established and contribute to Canada
achieving its full potential as a leading food supplier worldwide.” 

The Young Entrepreneur Loan has a 25 per cent minimum down payment requirement, custom variable and five-year fixed rates.

Similar to the Young Farmer Loan, which was introduced in 2012 and enhanced
last December, there are no processing fees.

During fiscal 2015-16, FCC approved more than $2.6 billion in financing to
farmers and entrepreneurs under age 40. 

The announcement I want to see is that the government is privatizing FCC. Get that thing off the government books before its optimism ends in another painful bubble burst.

OMAFRA lists grant recipients

The provincial government released a list Thursday of 27 companies that have received a total of $1.58 million.

They are:

Armstrong Milling Co. Ltd. (Hagersville);
Bruce Agra Dehy (Tiverton);
Cargill Limited (Guelph)
Coffin Ridge Boutique Winery Inc. (Annan);
Everspring Farms Ltd. (Ilderton);
Everspring Farms Ltd. (Seaforth);
Green's Meat Market & Abattoir Ltd. (Wingham);
Hayter's Farm (Dashwood);
Hill and Hill Farms Ltd. (Varna);
Huron Commodities (Clinton);
Metzger Meat Products (Hensall);
My Daddy's Soup (Meaford);
Norfolk Cherry Company Limited (Simcoe);
Original Foods Limited (Dunville);
Pine River Cheese & Butter Co-operative (Ripley);
R. Fiedler Meat Products Ltd.(Simcoe).

Robinson Maple Products (Auburn);
Sleeman Breweries Ltd (Guelph);
Snobelen Farms Ltd. (Lucknow);
Solis Foods Corporation Inc. (Brantford);
StoneHammer Brewing (Guelph);
The Garlic Box Inc.(Hensall);
Townsend Butchers Inc. (Simcoe);
Uncle Tom's Farm Inc.;
The Cider Keg (Vittoria);
Uniqpol Incorporated (Brantford), and

Wellington County Brewery Inc. (Guelph).