Canada: Federal Government goes ahead on dismantling CWB’s monopoly on wheat and barley sales

The federal government is moving ahead with plans to dismantle the Canadian Wheat Board's monopoly on wheat and barley sales, according to Canadian Press, January 1.

Some facts:

- The board is governed by the Canadian Wheat Board Act. The act was amended in 1998 so that the board is no longer a Crown corporation but an agency governed by 10 elected farmers, four directors appointed by the federal government and a president appointed by Ottawa in consultation with the board.

- It is the sole marketing agency for more than 85,000 farmers in Western Canada who grow wheat and barley for export or for human consumption in Canada. It returns all sales revenue, after marketing costs, to farmers.

- The board has about 20% of the world's market share in wheat, 65% in durum wheat, 30% of malting barley and 15% of feed barley.

- The Conservatives campaigned on a promise to give western Canadian farmers the freedom to make their own marketing and transportation decisions.

- The government plans to maintain a strong, viable wheat board, but make participation voluntary, starting with barley and later wheat.

04 January, 2007