The Canadian Wheat Market is Seeking a Change

The Canadian Wheat Board (CWB) is expected to change its method of operation as the government is replacing the existing monopoly with a system that will allow farmers to sell directly to their customers. One advocate Blair Rutter, who is the director of the Western Canadian Wheat Growers Association believes this new regulation will not work. He states that the farmers selling directly to their buyers will not be as profitable as the status quo. 

It appears that the farmers are not pleased with the new legislation. The farmers feel that the government does not have a true understanding of the whole process. Although, the government may feel that they are doing the right thing by implementing this change, it may very well work against the profitability of the farmers. Under the current system with the CWB in place the customers worldwide consider the Canadian supply as reliable, trustworthy and abundant to meet their needs. Whereas, in the absence of the CWB these same customers may very well view the Canadian supply as inefficient and not consistent to meet their needs. Finally, the current system has been proven to work efficiently whereas the proposed system is questionable to how well it will work.

Citation: Reuters. “Wheat Board downsized by Federal government” 18 October 2011. Web. 18 October. 2011.<http://www.bnn.ca/News/2011/10/18/Wheat-Board-downsized-by-Federal-government.aspx>

Reuters.“Breaking the wheat board monopoly” 15 February 2011. Web. 18 October. 2011.  <http://www.bnn.ca/News/2011/2/15/Breaking-the-wheat-board-monopoly.aspx>

Picture:“US Wheat President Alan Tracy to Aussie Wheat Growers- US Wheat Farmers Want You to Do Well.” 28 February 2010. Web. 18 October. 2011. <http://oklahomafarmreport.com/wire/news/2010/02/media/03203_AussieWheat.jpg>

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