Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 23, 2025, Winnipeg, Manitoba B5 THURSDAY JANUARY 23, 2025 ● BUSINESS@FREEPRESS.MB.CA ● WINNIPEGFREEPRESS.COM BUSINESS Canadian canola sector braces for potential U.S. tariff crunch AMID the looming threatened impos- ition of tariffs on Canadian exports to the United States, the significant inte- gration of the two countries’ economies is particularly stark when it comes to canola. The U.S. is, by far, the largest market for Canadian canola seed, oil and meal. Canada ships close to $9 billion worth of canola annually to its southern neigh- bour, accounting for more than half the value of its canola product exports. The vast majority of the canola products consumed in America comes from Canada, where producers plant an average of 20 million to 22 million acres (compared to only about 2.5 mil- lion acres in the U.S.). However, Derek Brewin, head of the department of agribusiness and agri- cultural economics at the University of Manitoba, says that it doesn’t mean American consumers are overly reliant on Canadian canola. Due to a high level of substitutability in the total oilseed market, “American consumers have options, including a large domestic soybean oils industry,” he said. About 17 per cent of Canada’s can- ola crop is grown in Manitoba. There are three canola crushing plants in the province, all of them effectively owned by one company: St. Louis-based Bunge Ltd. (The plant in Ste. Agathe had been owned by Viterra, but the Canadian government has approved the $8.2 bil- lion acquisition of Viterra by Bunge.) In 2023, Canada exported a total of $15.8 billion in canola seed, oil and meal globally, with $8.6 billion going to the U.S. U.S. President Donald Trump has threatened a 25 per cent across-the- board tariffs on Canadian goods, per- haps starting Feb. 1. “If tariffs start to happen, who know how it all lands?” Brewin said. “It will definitely be disruptive. “The sure thing is that canola oil and meal prices in the U.S. will go up if 25 per cent tariffs are imposed. The ques- tion is how much does that reduce U.S. demand for Canadian canola oil?” However, Brewin said canola oil’s positive characteristics and health benefits may mean U.S. consumers will pay a premium for it. “If that’s how it works out, the impact might not be too bad,” he said. Chris Davison, CEO of the Winni- peg-based Canola Council of Canada, said the industry is working hard to make sure the new U.S. administration is fully aware of the extent of the can- ola market integration between the two countries. “We are highly and actively engaged both with domestic stakeholders and counterparts in the U.S.,” he said. “We want to make sure the U.S. administra- tion is working with the best information to inform any decisions that they may take moving forward. Those integrated supply chains rely on smooth bilateral trade between the two countries.” The Canola Council recently com- pleted an analysis of the impact of Canadian-grown canola on the U.S. economy. It showed the United States averages US$11.2 billion of econom- ic activity annually and an average of US$1.2 billion in wages. “The reality is that there is econom- ic benefits of the integration at every stage of the industry from U.S. pro- cessing and refining, transportation, bottling and packaging, food end uses, livestock and more,” Davison said. Davison said the industry is working hard to be prepared, but the uncer- tainty is limiting. Brewin said if American consumers prefer to switch to soybean oil, it could mean the U.S. will consume more of its domestic soy crop, meaning it will not be able to export as much soy bean oil into the international market. “That could mean we can compete with our canola in the international market,” said Brewin. “But it’s all still painful. “There’s a built-up supply chain that will have to changed. It will put more pressure on the Port of Vancouver, which is already very busy.” martin.cash@freepress.mb.ca MARTIN CASH St. James coffee shop Joe Black not for sale, owner says A NOTABLE café near Assiniboine Park was briefly listed for sale follow- ing a temporary closure by provincial health inspectors and an exodus of staff. On Tuesday, Joe Black Coffee & Bar at 2037 Portage Ave. was posted online for $199,900. The listing advertised an “exceptional business opportunity” and a turn-key operation with a “long-stand- ing reputation.” After a Free Press inquiry to the owner, the listing was removed Wed- nesday. “I have no idea why Joe Black is on sale,” Devarshi Shah said. “I’m running it, and I’m going to run it.” Joe Black reopened Jan. 17, after a roughly 10-day closure incited by a health inspection. At the time, inspectors found evi- dence of rodents and food being pre- pared in insanitary conditions. The province was tipped off by a former employee, Shah said Wednesday. Cleaning and pest control companies were brought in, he said. Health offi- cials approved the Winnipeg shop for operation Jan. 16. Shah has been the owner since Nov. 5, 2024. The previous owner, Gina Gerbasi, operated Joe Black for 9 ½ years. Upwards of 10 employees — a major- ity — left Joe Black in November after the ownership change, citing various workplace and management issues, for- mer staff told the Free Press. “I’m trying to understand the busi- ness, I’m trying to understand the in- ventory, I’m trying to understand the profit and loss,” Shah said. “I’m only focused on (the) positive. (I’ll) focus on my customers, focus on going upward and onward.” Joanne Keeping, an area resident and regular customer of Joe Black, consid- ers the business a “landmark” in St. James. “I sure hope that things stabil- ize,” she said. Joe Black’s real estate agent did not respond to interview requests by print deadline. gabrielle.piche@winnipegfreepress.com GABRIELLE PICHÉ Brookfield buys U.S. single-family home portfolio in US$1B acquisition TORONTO — A Brookfield Asset Management Ltd.’ private real estate fund has bought a U.S. rent-to-own home platform and its portfolio of single family homes for about US$1 billion. In a joint news release, Maymont Homes, Brookfield’s single-family home rental business, says it will take on management of Divvy Homes’ portfolio on an ongoing basis. Divvy did not disclose how many homes Brookfield would be acquiring, but says since it was founded it has rented to more than 15,000 residents and sold homes to over 2,000 of them. Maymont Homes says on a LinkedIn profile it has more than 10,000 homes and describes itself on its website as a “full-service ac- quisition, renovation, and property management company.” Brookfield acquired a control- ling stake in single-family landlord Conrex Property Management in 2020, according to Bloomberg, be- fore changing its name to Maymont Homes. — The Canadian Press ‘Amazing immersive experience’: Young Agrarians apprenticeship program connects rookies with industry vets Planting seeds for next crop of farmers A FTER burning out in her social services job, Victoria Radauskas decided to give farming a try. The apprenticeship program offered by Young Agrarians was instrumental in making that happen. The educational resource network connected Radauskas to the Dogs Run Farm, a small Manitoba operation near Clearwater, that produces pas- ture-raised pork, lamb, chicken, turkey and eggs. Radauskas moved from her home in St. Thomas, Ont., to work alongside Dogs Run Farm owners Colin and Katie McInnis from April to November 2022. “It was an amazing immersive expe- rience,” Radauskas said. “They were super open with all aspects of taking care of the animals and the kinds of projects and infrastructure involved with maintaining the farm and how to actually make it into a livable busi- ness.” Connecting new farmers with indus- try veterans willing to help them is what the Young Agrarians apprentice- ship program is all about, according to Justin Girard, Manitoba program manager. The paid apprenticeships, which last four to 12 months, include tours and workshops at other farms, one-on-one support and networking opportunities with fellow apprentices. Participants are typically between the ages of 18 and 35, though the program is open to aspiring farmers of all ages. “We’ve heard from apprentices that they would not have made the leap if they hadn’t found our program and realized (they) can do this with a little bit of help and support,” Girard said. Established in B.C. in 2012, Young Agrarians is a program of Agrarians Foundation, whose mission is to edu- cate the public by providing courses, seminars and workshops about agri- culture, farming, food processing and environmental sustainability. The organization has a presence in Alberta, Saskatchewan and Ontario — and started a Manitoba office in 2021. In addition to the apprenticeship pro- gram, its offerings include a business mentorship network that helps newer farmers achieve their business goals through one-on-one consultation with more experienced farmers. When Colin and Katie McInnis added a cattle herd to the Dogs Run Farm, the business mentorship network was a valuable resource. Young Agrarians matched the couple with Don and Diane Guilford, experienced farmers from Guilford Hereford Ranch. “(Getting an) understanding of that market has been one of the most help- ful things,” Katie said. “The Guilfords are good business people, so they’ve been good people to work with in that sense.” Meanwhile, being a mentor in the ap- prenticeship program has profoundly affected McInnis because it’s made her think critically about being the best employer she can be. “It’s also meant that we’ve been able to pass on the skills we’ve learned in our short time as first-generation farmers,” she said. “Starting a farm is really pretty incredibly hard and takes a lot of resources and risk. We’re happy to be able to help folks learn those skills without having to take on all the risk themselves.” Canada’s farming population is shrinking and reached a historic low in 2021. Statistics Canada reports in 1971, one in 14 Canadians was a member of the farm population. By 2021, that number decreased to one in 61. Overall, from 1971 to 2021, the farm population declined by 62.2 per cent to 590,710 people. Statistics like those are why Young Agrarians want to inspire a new gen- eration of farmers to grow food. It’s hard to make farming viable and the organization wants to help. “Young Agrarians is kind of like a switchboard to the agriculture sector for young folks or people who are new to it,” Girard said. “If you’re interested in the food world and the farming world, there’s probably something for you.” The organization is currently accept- ing applications for both its apprentice- ship and business network programs (youngagrarians.org). The support of Young Agrarians has given Radauskas the confidence to strike out on her own: she recent- ly moved back to Southern Ontario, where she purchased 25 acres of land to raise sheep. “One of the things that does keep things in perspective for me … is the contact with people who have been where I am,” she said. “I think it would be a lot more overwhelming and scary without that support and community to reach out to.” aaron.epp@freepress.mb.ca AARON EPP SUPPLIED Katie and Colin McInnes (right), with their Guilford Hereford Ranch mentors Diane (centre) and Don Guilford and ranch em- ployee Don Vines (left). SUPPLIED Young Agrarians program participants Colin McInnes, with son Reuben, (left) and Katie McInnes (right) with their Manitoba farm’s 2024 employees Katheryn Loewen, a Young Agrarians apprentice in 2023, and Naïs Serieys (second right). ;