National Post (National Edition)

Asia eyed as B.C. wine pinched by Alberta ban

- Financial Post with a file from the The Canadian Press gmorgan@nationalpo­st.com

as the U.S. and Asia, for B.C.’s prolific vineyards.

“We’ve made it clear that we are going to be seeking new markets to replace any lost market we may have in Alberta,” said Horgan, who noted he promoted the industry during a recent trip to China, South Korea and Japan.

Caught in the crossfire are B.C. wineries that rely heavily on rack sales across the Rockies in Alberta, which accounts for roughly 20 per cent of the province’s wine market.

Jeff Harder, owner of Ex Nihilo Vineyards Inc. near Kelowna, says he’s been selling ice wine to China for years, but will now promote more table wines to Asia to make up for the roughly 20 to 30 per cent of his bottles sold in Alberta.

He also hopes to sell more wine into Ontario and Quebec, where environmen­tal activists already have begun a #qclovesbcw­ine movement on social media in support of B.C.’s anti-oil stand.

But B.C. winery owners, including some owned by Albertans, say they understand the frustratio­n of Albertans, who are facing difficulty accessing markets in Asia and the U.S. following years of pipeline delays. “If Albertans don’t have jobs, they’re not coming to British Columbia for tourism,” Harder said.

A handful of B.C. wineries are also trying to ease tensions by organizing an event this month in Vancouver to celebrate Alberta beef, pairing steak cuts with bottles of their own wine.

“Alberta beef and B.C. wine go really well together, so we’re doing a big event to support Alberta beef,” said Ian MacDonald, president of Liquidity Winery in Okanagan Falls, B.C., which is majority-owned by Albertans.

“Whether we accept it or not, Canada is an energyprod­ucing nation,” MacDonald said, adding that blocking federally approved pipelines will only hurt the country’s economy. “If you start backing out tens of billions of dollars per year in tax revenues to this country, who is going to pay for that?”

“I think that if anyone is missing in this equation, it’s (Prime Minister) Justin Trudeau,” he said. “I have the biggest problem (with him) going to hang out with celebritie­s in the United States B.C. winemakers Jeff Harder and Jay Paulson. Harder says he will promote more table wines to Asia to make up for the roughly 20 to 30 per cent of his bottles sold in Alberta. when really his main priority at this time should be coming out West to ease the tensions and work with the premiers,” MacDonald said.

Alberta native Bob Johnson, the owner of BaillieGro­hman Estate Winery in Creston, B.C., says he sympathize­s with Albertans who are frustrated that pipelines have not been built and their economy is suffering.

“It’s ridiculous,” he said of the B.C. government’s proposal to limit bitumen shipments across the province. “I know the people of Alberta want good representa­tion as far as pipelines are concerned.”

The winemakers say they are hopeful the trade dispute between Alberta and B.C. will be resolved quickly — so their wine can once again be sent to Alberta, while crude oil can flow through the Trans Mountain pipeline.

However, in a video posted on social media this week, Notley has hinted that more action against B.C. industries could be coming, although she didn’t specifical­ly name what Alberta might do in an attempt to increase pressure on both Trudeau and Horgan.

B.C. agricultur­e is vulnerable to a trade dispute with Alberta, according to a Canada West Foundation analysis gleaned from Statistics Canada trade data.

Alberta is the dominant market for cattle and calves from B.C., accounting for 76 per cent of all B.C. cattle exports, worth $213 million annually. Similarly, 64 per cent of tree nursery and floricultu­re products from B.C. go to Alberta each year, valued at around $324 million to B.C.

By contrast, B.C. is a proportion­ally smaller market for most Alberta exports. Roughly 26 per cent of the milk produced in Alberta is sent to B.C. each year, worth $140 million. Similarly, about 13 per cent of the beef produced in Alberta is sent to B.C. each year, accounting for roughly $554 million.

Meanwhile, the value of the Trans Mountain pipeline to Alberta’s oil and gas producers runs into the billions of dollars.

“This should not be portrayed as a battle between two provinces,” Canada West Foundation CEO Martha Hall Findlay said, adding that the dispute “will hurt people across the country.”

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