Canary seed farmers singing an unhappy tune

Saskatchewan farmer Larry Frisky has seen just about everything this spring - tornadoes, heavy rain and lightning storms so fierce one bolt knocked out his home telephone.

Now Mr. Frisky and thousands of other growers are facing an even bigger challenge, a trade war with Mexico that could block sales of their key crop - canary seed. "It's just fun and games, isn't it?" Mr. Frisky said with a laugh on his cellphone.

Canary seed is used mainly as a component of bird seed for parrots and other pets, and it's big business in Saskatchewan, worth an estimated $100-million annually. The province is by far the largest producer of canary seeds in the world, accounting for about 90 per cent of global production.

Most of the seeds are exported to dozens of countries mainly in Central and South America, where many exotic birds come from and where there is a long tradition of keeping caged birds. The biggest customer for Saskatchewan seeds is Mexico, which buys roughly 41,000 tonnes annually or about 25 per cent of the crop.

Last week, Mexican officials told the Canadian Food Inspection Agency that they would start blocking shipments of Canadian canary seeds containing buckwheat, a type of weed that can take over farm fields. While buckwheat has been a concern in the past, Mexico has gone further by indicating it will reject any shipment it finds to contain even one seed of wild buckwheat. Canadian officials test and clean all shipments, but they have indicated that it will be impossible to meet such a zero-tolerance test.

"It's not good news," said Kevin Hursh, executive director of the Canaryseed Development Commission of Saskatchewan, which represents the province's 3,000 canary seed growers. He added that Mexico's move has effectively closed the border. Exporters "just won't be willing to ship to Mexico and take the risk until we get the situation clarified and resolved."

Mr. Hursh said Canadian officials are negotiating with Mexico to figure out a solution.

He added that no one is sure why Mexico acted now.

Some farmers believe Mexico is trying to drive down the price, by creating an oversupply of canary seeds. And prices have dropped, falling to about 18 cents a pound from about 20 cents in recent days. But Mr. Hursh dismisses those theories, arguing that Mexico has no other real source for canary seeds if it rejects shipments from Canada.

"We're the player, so when Mexico does this, basically it's shorting itself on canary seed," he said.

Mexico's move has come at a tough time for some farmers. With prices for wheat, canola and barley slumping this year, many turned to specialty crops like canary seed for some extra income. Even at 18 cents a pound, canary seed is still nearly twice the price of wheat.

As a result, the amount of canary seed planted this year in Saskatchewan was expected to be 70 per cent higher this year than last.

Poor planting weather drove the price up, as canary seed is typically one of the last crops to go in.

"It's a big part of what I grow personally," said Mr. Frisky, who grows about 800 acres of canary seed along with 2,200 acres of canola and oats.

He added that another big attraction of the crop is the potential that canary seed could be approved for human consumption and used in snacks and baked goods. Some specialty stores in the United States and Mexico market alpiste, which is derived from canary seed and is touted as having health benefits.

But Mr. Hursh said getting approval in Canada for canary seed as a food for humans is a way off. "That's a long and ongoing project," he said.

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The canary seed: A growing export

2007 Canadian canary seed exports

Mexico - 22%

Belgium - 18%

Brazil - 14%

Spain - 7%

Other - 39%

FEED FACTS

Canary seed is a grass used to make bird feed.

It is a crop that thrives in warm days and cool nights.

It is less drought-tolerant than wheat.

Research is under way to make it edible for humans.

Possible uses include starch, vermicelli noodles and as a replacement for sesame seeds.

Other bird-feed ingredients include millet, safflower, flax and canola.

Some varieties of canary seed have tiny hairs that make the crop's dust irritating to humans during harvesting. This dust has been linked to respiratory problems.

An "itchless" variety that lacks the hairs is marketed as Canario.

Source: Staff,

Government of Saskatchewan