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Net income rose for Canadian Pacific Railway in 2022 as the railroad benefited from increased shipments of grain. World-Grain.com reports:
Grain freight revenue in the fourth quarter was $655 million compared to $440 million year-over-year, a jump of 49%. Grain freight revenue totaled $1.77 billion in 2022, an increase of 5% over 2021’s $1.68 billion.
“We remain focused on our precision scheduled railroading model and fundamentals of efficiency and strong service to our customers as we await a decision by the US Surface Transportation Board on our proposed combination with Kansas City Southern, which we anticipate occurring later this quarter,” said Keith Creel, president and chief executive officer of CP.
CP said its freight revenue per carload for the fourth quarter was $3,381, an 11% increase year-over-year, with grain bringing in $5,170 per carload, up $873 from 2021.
Also in the fourth quarter, CP reported hauling 126,700 carloads of grain, up from 102,400 in 2021, but for all of 2022, CP hauled 382,100 carloads of grain, down from 426,200 in 2021.
Cereals Canada, the country’s national non-profit industry association for grain producers and processors wrote:
Each fall, farmers work against the clock to harvest their wheat crops. It’s then up to the technical staff at Cereals Canada and the Canadian Grain Commission (CGC) to assess the quality of the crop and provide the information to global customers of Canadian cereals through a jointly released New Crop Report.
“The New Wheat Crop Report provides our customers with the technical data on what they can expect from this year’s crop,” states Dean Dias, Chief Executive Officer of Cereals Canada. “The 2022 report was released today and we are pleased to share that Canada has excellent quality in all wheat classes.”
A high proportion of the 2022 wheat crop has graded in the top two grades, with high protein content across all Canadian wheat classes.
- Over 90% of the CWRS (Canada Western Red Spring) crop has graded No. 1 and No. 2, with protein content higher than average.
- 80% of CWAD (Canada Western Amber Durum) has graded No. 1 and No. 2, with protein content higher than average.
- Over 90% of CPSR (Canada Prairie Spring Red) has graded No. 1 and No. 2, with good protein content.
- 99% of CESRW (Canada Eastern Soft Red Winter) graded No. 2 or above with consistent high falling numbers and excellent quality.
Following the drought conditions that reduced Canadian wheat production in 2021, 2022 production returned to above average volumes. This year, Canada grew 34.7 million tonnes of wheat, an increase of 55% from last year.
“Canadian agriculture supplies consistent, sustainable, high-quality cereals to help support food security at home and around the globe,” says Dias.
The New Crop Report is prepared and presented in partnership with the CGC, value chain members, and provincial grower commissions. This fall, Cereals Canada received harvest assessment samples from nine grain exporters. The CGC reviewed samples provided by growers in Western Canada, while the Ontario wheat was reviewed by the Grain Farmers of Ontario.
In the coming weeks, the 2022 New Wheat Crop Report will be shared in-person when a delegation representing the cereals value chain travels to over 15 countries in Asia, Latin America, Europe, Africa, and the Middle East.
“It’s important to keep our customers around the world informed on the quality they can expect as they make their purchasing decisions,” adds Dias. “The quality of Canadian wheat continues to be great.”
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