Diesel uncertainty and bird flu return raise farm risks

Combine being refuelled beside a poultry barn under migrating geese

Two very different risks are moving back onto Canadian farm planning sheets. One could raise fuel and transportation costs quickly. The other shows how fall migration can turn a familiar animal-health threat into movement controls around poultry farms.

A U.S. diesel restriction remains uncertain, but Canada is exposed

Donald Trump said he supported restricting U.S. diesel exports to bring down domestic prices. The suggestion immediately raised concern because diesel prices are already high and U.S. refineries supply a significant share of the international market.

No ban has been adopted. On September 23, the White House denied that it was preparing a 90-day export ban. U.S. Energy Secretary Chris Wright also said a flat ban was not under consideration and that officials were discussing voluntary ways to increase domestic supply.

The Canadian impact would vary by region. Western refineries could cushion part of the effect on Prairie farms. Eastern Canada is more dependent on imported U.S. refined products, at roughly 130,000 barrels per day. Even a partial restriction could tighten supply and raise diesel costs in Ontario, Quebec and Atlantic Canada, with added pressure on harvest work, input deliveries and freight.

The proposal has no announced terms, duration or start date, so its eventual effect cannot yet be priced with confidence. The immediate lesson is about exposure: a U.S. measure aimed at American fuel prices could move rapidly into Canadian farm operating costs.

My view: The idea appears to be gaining support among Republicans, and that is worrying. We are in the middle of harvest with diesel already very expensive. Any increase caused by export restrictions would hit our operations hard and add significant inflationary pressure.

Related reading: Farm diesel was already putting pressure on margins in late August.

Six Manitoba poultry sites are now under bird flu controls

The Canadian Food Inspection Agency listed six active infected premises in Manitoba on September 23. The first fall case was confirmed September 10 in the Rural Municipality of De Salaberry. Five more commercial poultry sites were added on September 21 and 22 in Cartier, Rockwood, Rhineland, Bifrost-Riverton and Woodlands.

Each site is under quarantine and within a primary control zone that restricts movement. Manitoba is advising bird owners to keep flocks indoors where possible, postpone poultry gatherings and strengthen biosecurity during fall migration.

There were no active infected premises in Quebec or Ontario as of September 23. That does not make the development a Manitoba-only concern. CFIA is asking bird owners across Canada to watch for sudden deaths, prevent contact with wild birds and report suspected infections quickly.

The agency also stresses that avian influenza is not considered a food-safety risk from properly cooked poultry or eggs. The HPAI virus found in U.S. dairy cattle has not been detected in Canadian domestic flocks.

Sources

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *