Canada: Government to pass a law to end Canadian Wheat Board "very soon"

Canada's Conservative government will pass legislation "very soon" to end the Canadian Wheat Board's monopoly on milling and exports of western wheat and barley, Prime Minister Stephen Harper said on October, 7, strongly warning the board to get out of the way.

According to a Reuters report on October, 11, Harper, in Regina, Saskatchewan for the announcement for construction of Western Canada's first major durum-processing plant in years, said his government will introduce legislation shortly after next week's House of Commons break and pass it soon after. The monopoly would end as of August 1, 2012.

"This is a historic change that has been long overdue," Harper said of the CWB's 69-year-old monopoly. "It's time for the Wheat Board and others who have been standing in the way to realize that this train is barreling down a Prairie track. You're much better to get on it than to lie on the tracks because this is going ahead."

The Wheat Board controls marketing for all of Western Canada's wheat, durum and barley for export or milling. Seeking to capitalize on the end of the monopoly, Alliance Grain Traders said on October, 7 it will build a durum- and legume-processing plant at Regina.

"Ending the Canadian Wheat Board's monopoly is clearly sending a signal that Canada is open for business," said Stephen Vandervalk, president of the Grain Growers of Canada.

Processors want to sign contracts directly with farmers to lock in supplies but can't do that under the monopoly, he said.

"There's no reason why anyone with a good business plan wouldn't be able to build their operation and still have a strong Wheat Board that's getting a fair price to farmers for their grain."

12 October, 2011