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Do grain processors like dealing with the CWB?

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    #16
    John,

    Some Millers like Robin Hood... and Bakeries like Demsters... have been drinking of the 'monopoly' deserts... being paid handsomly to advertise the CWB logo and message.

    These need to be generic programs... that don't pick winners that the 'single desk' spends $$$millions on promoting.

    Favoritism is fine... if my money wasn't confiscated to subsidise Smuckers... or Dempsters... they are profitable enough without needing extra stolen from our family farm and local communities.

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      #17
      Generally, they will benefit from the captive supplies of farmer's grain. Looking back, I remember in the mid-1990s there was a year of low quality wheat and the CWB refused to sell any top grade wheat domestically and saved it all for export sales.

      However, I'm guessing that situation can't repeat because of international trade agreements. For example, because of the WTO, in 1995 the import tax based on the "then price difference inside and outside Canada" was removed from section 46(d) of the CWB Act, and now millers can freely import wheat from the USA which I assume is why the CWB charges domestic prices based upon the US open market prices as jdepape states.

      So the millers are in a comfortable position: captive local supplies when they are good, and access when they are not. Somewhat similar to the domestic feed grain market.

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