http://www.reuters.com/article/2011/05/03/wheat-canada-idUSN039377020110503
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http://www.reuters.com/article/2011/05/03/wheat-canada-idUSN0310030520110503
Canadian Wheat Board to survive without monopoly-Ritz
Tue May 3, 2011 2:44pm EDT
* New Canada government has stronger mandate * Conservative won't hold farmer vote as CWB wants * CWB says couldn't operate on same scale without monopoly
(Refiles to clarify Ritz, not Oberg commenting in para 12) By Rod Nickel WINNIPEG, Manitoba, May 3 (Reuters) - The Canadian Wheat
Board, the last major agricultural marketing monopoly in the
world, can survive the loss of its exclusive hold over the
buying and selling of Western Canada's wheat and barley and
compete in an open system, Agriculture Minister Gerry Ritz told
Reuters on Tuesday. Ritz's Conservative Party won a majority government on
Monday, giving it for the first time the legislative clout to
strip the board's monopoly as it has long intended. "I was not shy about raising this at every whistle stop
that I made in Saskatchewan in eight different (electoral
districts), plus my own," Ritz said. "No one threw eggs at me.
There's some concern we're going to throw out the baby with the
bathwater (but) I told everyone not a chance." Canada is the world's biggest shipper of spring wheat and
durum, mostly through Wheat Board sales. The Wheat Board does not own crop storage facilities or
port terminals, but instead moves grain through privately owned
facilities of companies such as Viterra Inc (VT.TO), Cargill
Inc [CARG.UL] and Richardson International Limited. That system could continue, even if the Wheat Board becomes
a competitor instead of a supplier, Ritz said. But Wheat Board chairman Allen Oberg, a farmer at
Forestburg, Alberta, said the former Australian Wheat Board
lasted without its grain monopoly for less than three years
before selling its assets to rivals, despite having
grain-handling facilities. The CWB's lack of assets to move grain would leave it
"completely reliant" on rival grain companies to carry out its
sales, Oberg said. "That would put us in a vulnerable position." In the Canadian province of Ontario, a voluntary marketing
organization replaced a monopoly wheat seller, but it runs on a
smaller scale than the CWB, which is one of the world's biggest
grain marketers. "Could the Canadian Wheat Board exist as a brokerage
organization? Perhaps, but it would be a very different
Canadian Wheat Board," Oberg said. Opening up choice for farmers could result in more private
investment in developing better grain varieties and possibly in
building processing facilities in Western Canada, Ritz said. "Innovation has been stifled because farmers are saying,
I'm not going to spend a lot of money on this crop because I
can't pick and choose when I can sell it.'" Ritz, who is hoping Prime Minister Stephen Harper will
reappoint him as agriculture minister, said in an interview
that he will not hold a vote by farmers to decide whether the
Wheat Board keeps its monopoly, but said the government will
consult farmers. A federal law, the Canadian Wheat Board act, gives the
board its monopoly, but it is led by a board controlled by
farmers elected by other farmers. A farmer plebiscite should be held to decide the monopoly's
fate, Oberg said. "We respect the results of the election last night, we're
hoping the government respects the Wheat Board's democracy as
well." (Reporting by Rod Nickel; Editing by David Gregorio and
Lisa Shumaker)
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Media Release
May 3, 2011
Wheat Growers look forward to positive policy reforms
The Western Canadian Wheat Growers Association congratulates the Conservative Party on winning a majority government and looks forward to working with all Members of Parliament to implement positive agricultural reforms.
“The Wheat Growers are very pleased we will now be able to move ahead on a number of policy fronts,” says Kevin Bender, President of the Wheat Growers.
Key policy reforms the Wheat Growers will be seeking include a voluntary Canadian Wheat Board (CWB), implementation of railway service reforms, the modernization of the Canada Grain Act and the pursuit of free trade agreements, including the successful conclusion of a trade pact with the European Union.
“We encourage the government to move forward as quickly as possible on all these initiatives,” says Bender. “The faster we move ahead, the faster we can usher in greater prosperity in our sector.”
The Wheat Growers are looking forward in particular to marketing freedom in wheat and barley. As part of its platform, the Conservative Party has undertaken to provide marketing choice for prairie farmers. We urge the government to implement marketing choice by August 1, 2011 on the understanding that all existing farmer contracts with the CWB be honoured.
“It will be a great day for western Canada when we finally join other Canadian farmers in having the freedom to sell our own grain,” says Bender. “The increased farm profitability and improved business climate will bring long-overdue investments in research and processing to wheat and barley in western Canada.”
The Wheat Growers congratulate all Members of Parliament on their election and look forward to working with all Parties to effect positive agricultural reforms.
For further comment, please contact:
Kevin Bender
President
Western Canadian Wheat Growers Association
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By God I was hoping I would live long enough to see some positive voluntary market changes come to the cwb. If those changes have to come Thur Ottawa then so be it!
I think we should have a summer celebration... WHERE AND WHEN.....
Maybe the Wheat Growers well plan a party....
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