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Industry Update on Flax markets in Europe

Industry Update on Flax markets in Europe. Brief History on European Situation. Traces of GM content found from Canadian shipments already in EU Early September – Rapid Alerts being sent out by a number of countries on a daily basis

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Industry Update on Flax markets in Europe

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  1. Industry Update on Flax markets in Europe

  2. Brief History on European Situation • Traces of GM content found from Canadian shipments already in EU • Early September – Rapid Alerts being sent out by a number of countries on a daily basis • Mid to late September – EU marketplace/border closed down to Canadian shipments

  3. Response from the Trade • Immediate action needs to be taken to allow for the resumption of Canadian Flax shipments prior to the close of navigation • Early October - Industry and Government worked together to develop a protocol to ensure GM Flax would not enter the EU marketplace • Protocol was presented to and accepted by EU officials in late October for bulk shipments • Container protocol • Trade implemented appropriate measures and strategies in the hopes to salvage some type of program for December 2009

  4. Protocol • Elevator facilities must retain samples of producer deliveries • 5-car composite samples must be taken and sent to an ISO 17025 certified lab for GM/Triffid analysis • Any cars testing positive can not be loaded onto a boat • CGC samples and analysis done by hold on outbound vessel • Any holds testing positive can not be sold within EU • Importing country retains the right and/or ability to test • Level of Testing 0.01% • 1 in 40,000 seeds

  5. Additional measures • As of December 1st, 2009 all producers were required to have their flax stocks tested for Triffid and present this certificate upon delivery at Western Canadian elevators • Each certificate should represent no more than 5,000 bushels. • Why was this done? • Producers should know what the have • Information: To create Triffid “map” and to get an understanding of the level of contamination • To ensure that stocks testing positive would be kept separate from those testing negative at the elevator level • Several companies also put out a declaration form that producers had to sign

  6. Analysis Results • Producer and elevators samples • Positive at or above 0.01% - Approx. 3-5% • Higher if you bring in those below 0.01% • Additional analysis needs to be done to get an accurate and representative figure • Railcar shipments • Positive at or above 0.01% - Approx. 10-15% • Vessel holds • Positive at or above 0.01% - Approx. 7%

  7. Statistics • Exports to Europe August – December 3 year average is 280,000mt • 06/07 - 273,000mt • 07/08 - 277,000mt • 08/09 – 289,000mt • August – December 2009 : 89,000mt • Bright Spot: Exports to China have dramatically increased • Could hit 175 – 200,000mt for the crop year.

  8. Concerns of the Trade • Imperative that we clean up the seed supply • All must do their part and we have to work together • It’s not about doing what is easy, it’s about doing what is necessary • Restore the reputation of and confidence in the Canadian Flax supply

  9. Steps going forward • Ensure that seed going into the ground for Spring seeding does not contain Triffid • All flax seed will need to be tested at a level below 0.01% prior to being able to be put into the ground • Producers will be required to show this certificate prior to delivery in fall 2010 • Any seed testing positive (even below 0.01%) must be removed from the pipeline • Certified Seed Production • Producers will be required to seed 2010 production with certified seed only • Contingent on having enough Certified Seed that is free of Triffid • Trade negotiations with EU • LLP

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