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Canadian apple production is forecast to grow four percent for market year (MY) 2022/23, as production rebounds in Ontario and Quebec following adverse growing conditions in MY 2021/22. Pear production is forecast to grow on a bumper crop in Ontario, especially of the Bartlett variety.
On October 28, 2022, Tongaat Hullet’s management announced that they opted to go into voluntary business rescue due to the company’s severe levels of financial distress. On Tuesday November 1, Tongaat Hullet missed the deadline to pay R401 million ($22.9 million) for cane delivered by 4,300 growers in September.
The federal government announced that dairy, poultry and egg farmers and processors will receive CAD $1.7 billion dollars in compensation for impacts of the United States-Canada-Mexico Agreement (USMCA). This funding will be disbursed over six years, as direct payments and various investment programs, with the largest share going to the dairy sector.
On November 9, 2022, The International Trade Administration Commission of South Africa (ITAC) announced the initiation of the sunset review of anti-dumping duties (ADDs) of frozen bone-in portions of poultry from the United States.
South Africa has robust and experienced regulatory system for genetically engineered products, which started with the publication of the “GMO” Act of 1997. Today, South Africa is amongst the top-10 largest producers of GE crops in the world and has approved 27 GE plant events for commercial production contained in three commodities, namely, corn, soybeans, and cotton. South Africa’s corn yields doubled over the past 20 years, while soybean production improved 10-fold.
In July 2022, Canada published final regulations on supplemented foods. The new regulatory requirements are complex, and the food industry has until January 1, 2026 to become compliant. Stakeholders are strongly encouraged to consult the variety of resources and information made available by Health Canada to assist with the implementation of the supplemented foods regulatory framework.
FY2022 agricultural exports reach record levels.
In marketing year 2022/23, wheat production is forecast up more than 50 percent from the previous year on increased acreage and higher yields due to improved soil moisture. Wheat exports are forecast to increase year-over-year on larger domestic supplies. Crop 2022 will be the first sizable crop in four years to compete for rail services with other sectors throughout an entire marketing year. Non-durum and durum wheat are expected to be of high quality, resulting in lower feed-grade wheat supplies.
Post forecasts that South Africa’s corn area will stay flat in marketing year 2022/23. The current high input cost environment and an upsurge in soybean plantings are deterring any bullish outlook in expanding corn area, despite record high commodity prices and three consecutive bumper crops. Higher farming input costs are escalating the risk of production in a weather-dependent industry.
Canada continues to be the largest export market for U.S. consumer-oriented products. In 2021, U.S. consumer-oriented exports to Canada reached $18 billion, doubling the amount exported to the second largest market, Mexico.