December 2007 Archives

Whither Biofuels?

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There has been a tremendous increase in the production of biofuels, particularly ethanol, in recent years. In North America, at least, this increase in production has been policy driven. For a variety of reasons, the U.S. government, and to a lesser extent the Canadian government, have introduced a wide set of measures that have spurred growth in this area. The development of the biofuels industry has had a major impact on crop prices; the higher prices have generally benefited the crop sector while creating financial problems for the pork and poultry sectors in particular.

Grain Industry Structure in Western Canada

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The structure of the grain industry in Western Canada has changed dramatically in the last six months. Following months of negotiations and revised bids, Saskatchewan Wheat Pool (SWP) reached an agreement in May 2007 to take over Agricore United. The merged entity is named Viterra. This takeover further increased the concentration within the Prairie grain handling industry. Currently, there are three firms -- Viterra, Cargill and JRI -- that together own 68% of the licensed storage capacity in Western Canada.

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