Canada: Quick removal of single desk to affect CWB and Prairie farmers - opinion

The removal of single desk control over wheat and barley sales from the Canadian Wheat Board could kill the CWB and hurt Prairie farmers who depend on it, according to a former University of Regina business professor, The StarPhoenix reported on July, 4.

“I do believe there’s an economic role for the CWB beyond the end of the single desk,’’ said Sylvain Charlebois, associate dean of research and graduate studies at University of Guelph’s college of management and economics in Ontario. “And that’s where I think the Harper government is missing the boat.”

Charlebois, a former professor of marketing at the U of R’s Paul J. Hill School of Business, agrees that the single desk - the CWB’s legislated monopoly over the sale of Western Canadian wheat and barley meant for human consumption - should be removed from the CWB. But Charlebois, who also served as director of the Johnson-Shoyama Graduate School of Public Policy in Regina, says the federal government is moving too quickly and not giving the CWB enough time or resources to adapt to the open market.

Agriculture Minister Gerry Ritz said legislation to remove the single desk from Canadian Wheat Board will be introduced this fall, with implementation of the open market for wheat and barley set for Aug. 1, 2012.

“The CWB officials need two things: resources and time. And resources meaning competencies, perhaps even funding and, secondly, time to adjust,’’ added Charlebois, who teaches food distribution and policies at University of Guelph, which has a large agriculture school.

He said the CWB needs more than eight or nine months to prepare for the end of the single desk, which CWB chair Allen Oberg says it’s critical to the survival of the CWB. And he agrees that some sort of vote or plebiscite should be held to determine the wishes of the 50,000 or 60,000 Western Canadian farmers, who will be affected by the changes.

“I do believe that farmers should have a say. I’m not saying that Parliament should follow whatever the result of the plebiscite will be,” he added.

“At the end of the day, the single desk should cease,” Charlebois said. “Such a reform will make Canada more competitive, as the monopoly is a hindrance to our ability to compete globally.’’
But Charlebois says removing the single desk will have a major impact on the Prairies, by increasing the consolidation of elevators and branch lines, reducing the number of producer car loading sites and short-line railroads, etc.

“We can’t be hypocrites. The end of the single desk will mean a significant change to agricultural landscape of the Prairies. There’s no doubt about that.”

06 July, 2011