SSC SEC Services Corp. (SECUF)

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For the record, from fundamental Research Corp..........

credit goes to:
Daniel Iwata, BA, Dip. Fin. Mgmt.
Equity Research Associate

Canola Council of Canada 2025 targets

The Canola Council of Canada (“CCC”) released their 2014 annual report a few weeks ago discussing 2014,
and gives targets for the canola industry into 2025. We feel that the targets are encouraging for Input Capital
(TSX-V- INP) as the CCC looks to grow the Canola Industry. Input Capital provides financing to canola
farmers through canola streams and recently hit a 52 week high of $3.06 on March 27.
The chart below outlines the 2014 results and the CCC’s 2025 targets. They estimate canola production will
increase to 26 million tonnes from 15.6 million tonnes in 2014. Seeded acreage is estimated to increase by 10%,
but the yield per acre is anticipated to rise substantially to 52 bushels an acre.
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Yield performance is a significant factor for the Industry and Input. There is limited remaining farmland in
Canada that is not yet being farmed. In order to increase production, and grow canola production, gains need tocome from higher yields. CCC is projecting large increases in canola production through technology. They
estimate that harvest management, pest control, fertility management, and genetic improvements, can improve
the yield to 52 bushels per acre.
Another highlight of the report is the work the CCC is doing to expand Canola throughout the globe. The report
notes the CCC were in 13 trade discussions trying to improve the access of Canadian canola internationally.
They have also taken significant steps to expand canola to China, which they see as their number one target
market. These steps include developing a mandarin language website and educating users on the differences
between canola and rapeseed, and expanding trade relationships.
We feel that production of canola in Canada will continue to improve and anticipate a healthy demand for
canola. We continue to maintain a positive outlook on Input Capital.

http://www.researchfrc.com/new/idea-of-the-week/