Canada: Federal plebiscite on the future of CWB must ask farmers about wheat and barley

A farmer plebiscite on the future of the CWB must include a fair question on both barley and wheat, the CWB said November 01.

The Hon. Chuck Strahl, Minister responsible for the CWB, announced October 31 that he plans to hold a plebiscite on single-desk marketing next year, but only on barley.

"We look forward to a discussion with the Minister on conducting a plebiscite on wheat at the same time," said Ken Ritter, chair of the CWB's farmer-controlled board of directors. "Farmers have a legal right to vote on all mandate changes for the CWB. That applies to wheat as well as barley.

"All parties, including the government and the CWB, must then accept the results."

CWB president and CEO Adrian Measner said the CWB's first principle has always been that farmers should have the right to determine the future of the single desk for the products it markets, which include wheat.

"The Minister should end, once and for all, the uncertainty that is negatively affecting farmers, customers and employees," he said.

In 1997, the federal government held a Prairie producer vote on barley marketing in response to a recommendation by the Western Grain Marketing Panel that barley be removed from the CWB single-desk system. At that time, 63 per cent of farmers voted to maintain the CWB as the single seller for all barley, with the continuing exception of domestic feed barley.

Measner said many improvements have been made to barley marketing since that time, including a two-pool system for export feed barley, protein payments for malting barley, guaranteed delivery contracts, a range of pricing and payment options and a value-added incentive program that provides premiums for direct deliveries to domestic maltsters. In 1998 control of the CWB was also passed directly to producers through the creation of a governing board made up mostly of farmer-elected directors.

"Much effort has been made to solicit the input of barley farmers and respond to their needs."

An average of 21 million tonnes of wheat is produced in Western Canada each year and 10 million tonnes of barley. The CWB markets both crops for export and for domestic human consumption, but does not market barley or wheat used for animal feed within Canada.

A plebiscite to measure farmer support for retaining or dismantling their single-desk marketing system for wheat and barley needs to have a fair question and reasonable eligibility rules. Some of the issues to be examined have been set out in a CWB discussion paper which can be viewed on the CWB Web site. The major Prairie farm groups have also recommended an approach for conducting a fair plebiscite and submitted their suggestions to Minister Strahl.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

03 November, 2006