Canadian Wheat Board Monopoly Continues to Work Against Alberta Farmers

(September 8, 2003 - CP)    Alberta farmers continue to be penalized by the Canadian Wheat Board, as the Board's decision to move away from tendering and back to a formula system for allocating railcars to grain companies will reduce farmer returns.

Tendering is a bidding process used to award contracts to grain companies for the movement of Canadian Wheat Board grains.  This process results in major benefits for farmers and grain companies.  Total transportation savings from tendering in 2001-2002 were $40.9 million and $21.5 million in the first three quarters of 2002-2003.

"These savings are returned directly back to farmers through the Board's pool accounts," said Shirley McClellan, Deputy Premier and Minister of Agriculture, Food and Rural Development.  "Along with single-desk marketing, this decision is just another example of how the Wheat Board continues to disadvantage Alberta farmers with its short-sighted policies that fail to work for farmers across Western Canada."

The Canadian Wheat Board will reduce tendering from 50 per cent in 2002-2003 to 20 per cent in 2003-2004.  McClellan called on Ralph Goodale, federal Minister Responsible for the Canadian Wheat Board to direct the CWB to immediately re-establish tendering at a minimum level of 50% for the current crop year.

"A gradual expansion of tendering for Wheat Board shipments to port was a key piece of the federal government's regulatory reform announced for 2000," said McClellan.  "This decision by the Board is another step backwards.  Clearly the Federal government has failed to ensure follow-through on its own policy."