REGINA — Thanks to strong demand for resources, Saskatchewan’s export sales are expected to pass those of more-populous B.C. this year, the head of the Prairie province’s export agency says.
Lionel LaBelle, president-CEO of the Saskatchewan Trade and Export Partnership (STEP) says recently released figures collected by Statistics Canada indicate the province’s farms, mines and industries had sold $16.035 billion of products to foreign buyers by the end of June, compared with B.C.’s $15.6 billion.
That works out to a 16.8-per cent increase in export sales so far this year, atop a 24-per-cent rise in 2011, he said, adding this puts us behind Ontario, Alberta and Quebec as exporters.
“When I looked at these number, I’ve got to tell you I don’t think our grandparents ever imagined a time when we would actually be ahead of British Columbia,” a delighted LaBelle said. “The message is that we’ve had to work a helluva lot harder than they do because we’re 1,500 kilometres from a seaport.”
“It’s really quite remarkable.”
Also striking were increases in purchases by Saskatchewan’s export customers: 20 per cent more by the U.S., 50 per cent by Brazil, 23 per cent more by Mexico and a whopping 96 per cent by China.
There’s no secret to how this happened.
“In most examples, it’s food and fertilizer,” LaBelle said.
“But our manufacturing sector still remains very, very strong.”
The success of this sector puts an interesting perspective on the debate over whether a Canadian dollar pumped up by resource exports, makes problems for the country’s manufacturers when they try to sell aboard.
In Saskatchewan, a big chunk of the manufacturing sector revolves around farm machinery, which LaBelle says is “doing well year over year” against products from other countries or trade blocs with relatively strong currencies, like China, Japan and the European Community. “Our currency has kinda remained parallel to their currencies, so it hasn’t hurt us as much as we’d thought.”
“Our guys, from the get go, have always said one thing: it’s the volatility; it’s not necessarily the price point of the dollar. It’s the volatility. That’s the hard thing to manage.”
When STEP was set up as a partnership of government and private firms in the late 1990s, Saskatchewan was exporting about $8 billion each year. Exports hit $24 billion in 2010 and just under $30 billion last year; STEP figures this year’s total will be around $34 billion.
It’s all the more impressive, LaBelle pointed out, when you consider B.C. and Alberta both have eight or nine trade-promotion offices, while Saskatchewan has just one: a shared facility in China.
But more offices are not what tops STEP’s wish list. That would be better logistics to get Saskatchewan producers to export markets.
If rail routes get better — and LaBelle’s heard rumours the CNR is interested in improving its facilities at the port of Prince Rupert, then Saskatchewan’s exports could double in as little as five years, he said.
“Our ability to get product to market — that will be a challenge to us.”
The Leader-Post August 14, 2012
Lionel LaBelle, president-CEO of the Saskatchewan Trade and Export Partnership (STEP) says recently released figures collected by Statistics Canada indicate the province’s farms, mines and industries had sold $16.035 billion of products to foreign buyers by the end of June, compared with B.C.’s $15.6 billion.
That works out to a 16.8-per cent increase in export sales so far this year, atop a 24-per-cent rise in 2011, he said, adding this puts us behind Ontario, Alberta and Quebec as exporters.
“When I looked at these number, I’ve got to tell you I don’t think our grandparents ever imagined a time when we would actually be ahead of British Columbia,” a delighted LaBelle said. “The message is that we’ve had to work a helluva lot harder than they do because we’re 1,500 kilometres from a seaport.”
“It’s really quite remarkable.”
Also striking were increases in purchases by Saskatchewan’s export customers: 20 per cent more by the U.S., 50 per cent by Brazil, 23 per cent more by Mexico and a whopping 96 per cent by China.
There’s no secret to how this happened.
“In most examples, it’s food and fertilizer,” LaBelle said.
“But our manufacturing sector still remains very, very strong.”
The success of this sector puts an interesting perspective on the debate over whether a Canadian dollar pumped up by resource exports, makes problems for the country’s manufacturers when they try to sell aboard.
In Saskatchewan, a big chunk of the manufacturing sector revolves around farm machinery, which LaBelle says is “doing well year over year” against products from other countries or trade blocs with relatively strong currencies, like China, Japan and the European Community. “Our currency has kinda remained parallel to their currencies, so it hasn’t hurt us as much as we’d thought.”
“Our guys, from the get go, have always said one thing: it’s the volatility; it’s not necessarily the price point of the dollar. It’s the volatility. That’s the hard thing to manage.”
When STEP was set up as a partnership of government and private firms in the late 1990s, Saskatchewan was exporting about $8 billion each year. Exports hit $24 billion in 2010 and just under $30 billion last year; STEP figures this year’s total will be around $34 billion.
It’s all the more impressive, LaBelle pointed out, when you consider B.C. and Alberta both have eight or nine trade-promotion offices, while Saskatchewan has just one: a shared facility in China.
But more offices are not what tops STEP’s wish list. That would be better logistics to get Saskatchewan producers to export markets.
If rail routes get better — and LaBelle’s heard rumours the CNR is interested in improving its facilities at the port of Prince Rupert, then Saskatchewan’s exports could double in as little as five years, he said.
“Our ability to get product to market — that will be a challenge to us.”
The Leader-Post August 14, 2012