May 2011

Last November, we began to talk about the reduction in acres of certain crops in the Pacific Northwest. We noted that compared to 2009 production numbers, Chewings Fescue acres were estimated to be down 28%, Bentgrass down 39%, Kentucky Bluegrass down29%, Perennial Ryegrass down 11%, and Tall Fescue down 28%. Last month we noted that international sales have been good this year.

This month, we will provide some additional overseas production data that might be of interest to you. According to a report put out last month by the Government of Alberta’s Agriculture and Rural Development Ministry of Canada, Danish 2010 production was also substantially down. The report stated that overall grass and legume production was down nearly one quarter (24.4%) from 2009 and off almost 13% from the 10-year average. Specifically, Perennial Ryegrass was down 23%, Orchardgrass down 52%, Tall Fescue down 48%, and Bluegrass down 13%. Production of Creeping Red Fescue was down 18% with a notation that Danish production was still over twice that produced in Canada.

While both of these factors don’t necessarily relate to domestic consumption, they do affect both pricing and supply. New crop export interest on items like Fawn and turf-type Perennial Ryegrass are at levels higher than prompt domestic prices.