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May 21, 2014 05:00 ET
OTTAWA, ONTARIO–(May 21, 2014) – Saskatchewan’s exports are forecast to rise by 8 per cent in 2014 owing to a surge in crop production and strong global demand, according to a new forecast by Export Development Canada (EDC).
“Saskatchewan will be among Canada’s best export performers in 2014 on the strength of strong crop yields, ” said Peter Hall, Chief Economist, EDC. “While transportation challenges remain, the backlog should be clear by the end of 2014, setting the stage for exports to hold steady in 2015.”
Saskatchewan is Canada’s most export-diversified province, with a full 25 per cent of its exports going to emerging markets. The destinations of some of the province’s 1,000-plus exporters include China, Japan, India and Indonesia.
“The province’s growing ties with emerging markets bode well for Saskatchewan in the long term as the world gets hungrier,” said Hall. “Raw and processed foods, fertilizers, and agricultural equipment will be in hot demand as growth in the emerging market middle class continues to explode. This trend is putting exponential pressure on the world’s food supply. Saskatchewan is well placed to capitalize on this increased appetite.”
Hall was in Saskatoon today at the Sheraton Cavalier to address a lunchtime crowd of local small- and medium-sized business leaders about trends in the global economy that could impact their international sales opportunities.
Saskatchewan’s top performing export sector will be agri-food industry, which is forecast to grow by 15 per cent this year. The growth is primarily driven by the surge in production last year, as ideal weather conditions drove yields to record levels in spite of late seeding. Next year, a decline in seeded area and a return to normal yields combined with softer agriculture prices will hold exports to a 1 per cent increase. Exports of agricultural machinery are expected to boost Saskatchewan’s exports of machinery and equipment to 6 per cent this year and 14 per cent in 2015.
Energy exports will expand by a modest 2 per cent this year and next. Potential growth gains from small increases in crude volumes will be checked by softening prices.
EDC’s semi-annual Global Export Forecast addresses the latest global export conditions including market- and sector-specific insights to help Canadian exporting companies grow their international sales. It also analyzes a range of risks for which exporters should be prepared. Read EDC’s Global Export Forecast.
EDC is Canada’s export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca