By Rod Nickel and Nia Williams
WINNIPEG/CALGARY, Feb 26 (Reuters) - Canadian farmers are
cashing in on the highest vegetable prices in years, helped by
the country's weak currency and soaring costs of U.S. imports
that have made them unexpected winners in a bearish commodity
world.
Soft wheat and canola prices may diminish Canadian farm
incomes by 9 percent this year. But it is the best
of times for carrot and beet growers, part of a niche industry
best-known for stocking farmers' markets.
"Per acre, there's nothing quite like it right now," said
Sam Hofer, who grows carrots at Dinsmore, Saskatchewan. "You can
make good pocket money off 50 acres (20 hectares) of land."
At Emile Marquette's farm near Perigord, Saskatchewan, his
20 acres of beets may bring 10 times more net profit per acre
than canola. That is due to beets' higher output per acre as
well as sky-rocketing prices.
The year ahead looks to have "huge potential," Marquette
said.
Fresh vegetable and fruit prices jumped 18 and 13 percent
respectively in January year over year, according to Statistics
Canada.
The cost of imported U.S. produce has spiked as the Canadian
dollar CAD= , now trading around 74 U.S. cents, fell 16 percent
last year. Excessive rain in some U.S. regions has added costs.
Marquette is part of a grower group that sells vegetables to
Saskatchewan-based Federated Co-operatives Limited. The growers
and co-op set price increases for 2016 of five to 10 percent on
local produce that already fetches a premium.
It is a modest top-up, given store prices, but Marquette
said farmers want to nurture demand.
Marquette is expanding beet plantings by one-third, or five
acres, claiming more of his canola field.
Vegetable plantings in Saskatchewan may grow by up to 10
percent this year, said Bob Purton, president of Saskatchewan
Vegetable Growers' Association.
Purton sells his tomatoes and cucumbers to farmers' markets
and expects the best prices of his 15 years growing vegetables.
In Alberta, carrots' value topped C$5.4 million last year,
the highest since 1997.
In Ontario, demand should increase for Canadian apples,
peaches and berries from retailers including Loblaw Companies
Ltd L.TO , Sobeys Inc SOBEF.UL , Wal Mart Stores Inc WMT.N
and Metro Inc MRU.TO , said John Kelly, executive
vice-president of Ontario Fruit and Vegetable Growers
Association.
The low Canadian dollar may also spur fruit exports to the
United States, he said.
Federated Co-op has steadily bought more from Saskatchewan
farmers in recent years. But the dollar's slump has added to the
urgency, said Mike Furi, manager of procurement and pricing at
Federated's subsidiary, The Grocery People.
Canada's second-largest grocery chain Sobeys said it is also
buying more from Canadian farmers. Sobeys is hiring four "local
developers" in Alberta and British Columbia, whose mission is to
find local farmers and vendors.
High grocery prices have ebbed, but another shock may be in
store, Furi said.
Excessive rains and fluctuating temperatures in California
and Florida may tighten supplies of celery, cauliflower and
cabbage in March and April, spurring more demand for Canadian
produce, Furi said.
"As much as they can grow, we can take."
($1 = 1.3682 Canadian dollars)
(Editing by Marguerita Choy)