The current situation with the CWB monopoly begs the question: What will the single desk do to help me survive as a grain farmer in Western Canada over the next few years?
We already have established, and history has proven, that the CWB is a price taker in the world market, and they cannot increase the world price and pass this on to their captive supply - the farmers of Western Canada.
Well, can they then do something for us in terms of world market share?
On July 17, 2000 the CWB posted a paper entitled "Special Market Reports" in which they analyzed world trade in wheat and barley to the year 2008.
These are their own conclusions:
1. While world trade in wheat will increase 22% by 2008, the Canadian share will only increase by 3%
2. The Canadian share of the world wheat market will decrease from 19.5% to 16.6%.
3. World barley trade will increase 43% by 2008, while Canadian barley exports will imcrease by only 8%.
4. The Canadian share of the world barley trade will decrease from 16% to 12%.
5.Over the last few years, Canada was clearly the 2nd largest exporter of wheat in the world. By 2008, the CWB forecasts we will be a very poor 3rd, marginally ahead of 4th place Australia.
So much for all the benefits of the CWB monopoly to Western Canadian farmers!
Their own numbers show they are not up for the challenges of the future, and they selfishly will not let anyone bypass their ironclad monopoly.
We already have established, and history has proven, that the CWB is a price taker in the world market, and they cannot increase the world price and pass this on to their captive supply - the farmers of Western Canada.
Well, can they then do something for us in terms of world market share?
On July 17, 2000 the CWB posted a paper entitled "Special Market Reports" in which they analyzed world trade in wheat and barley to the year 2008.
These are their own conclusions:
1. While world trade in wheat will increase 22% by 2008, the Canadian share will only increase by 3%
2. The Canadian share of the world wheat market will decrease from 19.5% to 16.6%.
3. World barley trade will increase 43% by 2008, while Canadian barley exports will imcrease by only 8%.
4. The Canadian share of the world barley trade will decrease from 16% to 12%.
5.Over the last few years, Canada was clearly the 2nd largest exporter of wheat in the world. By 2008, the CWB forecasts we will be a very poor 3rd, marginally ahead of 4th place Australia.
So much for all the benefits of the CWB monopoly to Western Canadian farmers!
Their own numbers show they are not up for the challenges of the future, and they selfishly will not let anyone bypass their ironclad monopoly.
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