Western Grain Marketing Panel recommendations on Canadian wheat marketing
July 01, 1996
by Teresa Acklin
The Western Grain Marketing Panel made the following recommendations on Canadian wheat marketing:
• Licensed classes of wheat for export and domestic human consumption should continue to be marketed through the Canadian Wheat Board.
• Farmers should be offered the option of selling a portion of their spring wheats outside the pool through use of spot and forward cash prices offered by the C.W.B. Basis contracts would be priced off the Minneapolis Grain Exchange or subsequently off the Winnipeg Commodity Exchange when a viable spring wheat futures contract is available on the W.C.E.
• The potential for offering a similar cash option for other classes of wheat, except durum, using the Chicago and Kansas City futures market for pricing should be explored and such options should be implemented, if feasible.
• An implementation committee should be convened by the Minister with representation from the C.W.B., the trade and other relevant stakeholders to implement the cash options.
• Organic wheats should be regulated outside the jurisdiction of the C.W.B. and handled on an identity-preserved basis under supervision of the Canadian Grain Commission. Marketing would be done privately, with C.W.B. participation optional. The organic associations and the federal government need to complete efforts to establish a recognized certification program.
• Unlicensed wheats should be exempt from the jurisdiction of the C.W.B. and handled through the identity-preserved system supervised by the C.G.C., with C.W.B. participation optional.
• Feed barley should be placed under an open market for both the domestic and export markets whereby all companies and the C.W.B. would be free to buy and sell. The Panel believes there is merit in continuing to market malting barley exclusively through the C.W.B.
• Pricing and related issues of concern to both Canada and the United States with respect to durum wheat need resolution. The panel recommends those issues be referred to the producer/industry consultative committee proposed by the Canada-U.S. Joint Commission on Grains. In the meantime, durum wheat should continue to be marketed through the C.W.B.