The U.S. Department of Agriculture expected Canada to become the third-largest wheat exporter in the world for the second consecutive year, as crop production continues to increase in the Prairie Provinces.

Data from the department showed that Canada surpassed Australia to occupy the third position in the 2023-2024 crop season, and is expected to maintain the same ranking in 2024-2025, according to Bloomberg News.

For its part, Canada announced that it is on track to become the third-largest wheat exporter in the world for the second consecutive year, as crop production in the Prairie Provinces continues to rise.

Canada now ranks third, behind Russia and the European Union, in terms of wheat export volumes.

According to the 2024-2025 forecasts released by the Canadian Ministry of Agriculture and Food, the production of all staple crops in the country is expected to increase by 1.8% year-on-year and 2.4% above the average of the past five years.

These figures reflect a harvest season that has largely been completed, showing the impact of improved yields in Western Canada where drought conditions were not as severe as in the previous year.

Although Canada also ranked third in wheat production last year despite the drought, Australian farmers faced climatic challenges that led to a decline in crop volumes.

Canada shipped nearly 21.8 million tons of wheat to 65 countries in 2023-2024, with the top five destinations being China, Indonesia, Japan, Bangladesh, and the United States, according to the Canadian Ministry of Agriculture and Food.

Justin Shepherd, an economist at Canadian Farm Credit, stated that global arrangements may fluctuate from year to year due to climatic conditions in certain geographical areas, but Canada as a whole has increased its wheat export volumes thanks to advancements in agricultural research and crop genetics.

He added, "We saw a significantly lower wheat crop for export in 2021 due to major drought in the Prairies that year, but overall, as long as Canada is able to grow an average or above-average crop, we have seen export growth over time."

It is noted that global demand for wheat has increased, as the U.S. Department of Agriculture forecasts that global wheat consumption will rise by 0.6% in 2024-2025, with increased demand from North America, the Middle East, and Southeast Asia.