Canary Commission Fears Price Collapse

SASKATOON - Apr 27/10 - SNS -- The Canaryseed Development Commission of Saskatchewan (CDCS) is worried about the effect this year's intended increase in acreage will have on market values in the coming marketing year.

"If Saskatchewan producers follow through on the seeding intentions reported by Statistics Canada, canaryseed prices are likely to decline from their current levels," the commission said in a press release.

Last year, Saskatchewan farmers seeded 300,000 acres. Seeding intentions for this year are at 510,000 acres according to the Statistics Canada report.

"Producers are turning to canaryseed because price prospects are poor for many other crops including wheat, durum, barley and field peas," the commission said. "With current canaryseed prices at 15 to 17 cents a pound, the crop looks like an attractive option. However, over 500,000 acres combined with an average yield would produce more canaryseed than the market can consume."

Producers face difficult cropping choices as they attempt to maintain profitability, but the CDCS is cautioning producers that too many canaryseed acres may lead to disappointing price levels for an extended period of time.