Feed barley short but prices still fall

Nov 28, 2023

Feed barley prices have been drifting lower despite limited supplies of the crop.

Agriculture Canada estimated total supply for 2023-24 at 8.75 million tonnes, down 17 percent from the previous year.

Yet prices have tumbled by about $100 per tonne since the start of the calendar year.

“There are a number of factors which have contributed to the price moderation of feed barley,” Alberta Agriculture crop market analyst Neil Blue said in a recent article published on the government’s website.

Livestock feeders have gotten used to working with feed barley substitutes in recent years when barley was in short supply.

Cattle feeders in Lethbridge have been using feed wheat, milling wheat, oats and importing corn from the United States.

“Feeding imported corn has become common when price competitive,” he said.

Canada has imported 261,800 tonnes of U.S. corn in the current marketing year, more than five times the volume of the same period last year.

Strong export demand from China had also been propping up Canadian feed barley prices. But that demand is waning now that China has removed its import tariffs on Australian barley.

Canadian bulk barley exports through week 16 of the 2023-24 campaign total just 742,700 tonnes, versus 1.05 million tonnes for the same period one year ago.

GrainFox analyst Neil Townsend thinks the main reason feed barley prices are slumping is that corn and wheat prices are also under pressure.

“The general grains complex has been an anchor on barley prices because barley doesn’t have enough of a story on its own to break away from that,” he said.

He also noted that livestock numbers have expanded little in North America despite access to cheaper grain.

Another bearish factor is that Saudi Arabia, which used to be the world’s leading buyer of the crop, has dramatically cut its purchases in recent years.

Canada doesn’t ship to that market, but it means there is more barley to compete with in other markets like China, North Africa and the European Union, said Townsend.

Blue said there are some bullish influences for feed barley.

“The shortage of hay for cattle feeding may lead to more straw-grain rations, with barley, oats and pellets the most likely concentrate source,” he said.

Blue also thinks export prospects will improve as the crop year unfolds now that prices have dropped.

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Video: The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

In the vast prairies of Alberta, Olds College’s Field Crop Development Centre (FCDC) stands as a beacon of innovation and research in the agricultural world. The institution has become a key player in advancing agricultural technologies and practices. The FCDC’s commitment to applied research has driven them to seek effective means of disseminating their findings and creating a positive impact on the farming community.

One such avenue that aligns with their mission is AgSmart, an event dedicated to showcasing cutting-edge agricultural technologies. The coming together of the FCDC’s annual Field Day and Ag Smart has proved to be a natural fit, fostering a synergy that benefits both parties and propels the agriculture industry forward. The FCDC Field Day took part in conjunction with AgSmart for the first time this week on Aug. 1-2 in Olds, Alta. FCDC Program Director Kofi Agblor and Olds College VP of Development Todd Ormann sat down for an interview with Marc Zienkiewicz to discuss the significance of the two events taking part together and what the future holds.

The Intersection of Research and Technology The essence of the FCDC lies in its dedication to plant breeding and new seed varieties, particularly barley and triticale. While conducting research is essential, it becomes meaningful when its benefits are shared with the wider community. This is where AgSmart steps in, providing a key venue for the FCDC to showcase their research. This union between research and technology creates a holistic and enriching experience for farmers, ranchers, and industry professionals, the pair said.

Seeds as Technology For the FCDC, the partnership with AgSmart goes beyond mere event collaboration. It is about creating an environment that bridges the gap between seeds and smart technology, Ormann said. The college believes that for technology to truly revolutionize agriculture, it must begin with a strong foundation — high-quality seeds. As the saying goes, “it all starts with a seed.” To demonstrate this critical aspect, the collaboration aims to showcase the seed value chain as an integral part of the smartphone.

The Birth of a Powerful Alliance The idea of joining forces emerged when staff realized the potential synergy between AgSmart and the FCDC Field Day. With just a few days separating the two events, a proposal was put forward to merge them. The marketing and communications teams from both sides worked seamlessly to ensure the essence of both events remained intact, creating a powerful alliance that leverages the strengths of each, Agblor said.

Driving Advancements in Breeding For Agblor, the partnership with AgSmart has tremendous potential to drive advancements in breeding and other technology. With technologies like drones and imaging becoming integral to phenotyping, breeding is no longer confined to vast fields to assess thousands of plants manually. Instead, it benefits from the data-rich insights brought about by smart technologies. These advancements make breeding more efficient, precise, and instrumental in shaping the future of agriculture.

Overcoming Challenges Together While the partnership between Olds College and Ag Smart has been a resounding success, there are challenges on the horizon. Securing stable funding for long-term breeding initiatives is crucial to sustain progress. The college is committed to navigating these challenges and investing in agriculture’s future sustainably, Agblor said.