Canadian Wheat Board VIP
Falls Short of Delivering True Value to Farmers
(September 21, 2004 - Airdrie) "The
Canadian Wheat Board's (CWB) value-added incentive program (VIP) is a step
in the right direction but does not address the issues of farmer cost or
of increasing our value-added industry" said Douglas McBain,
President, Western Barley Growers Association (WBGA), when commenting on
the CWB offer of a premium on direct deliveries.
Starting this crop year, the CWB will pay farmers a $3 per tonne premium
for wheat and barley delivered directly to a mill or malt plant. According
to CWB officials, this payment represents the carrying cost savings of $3
- $4 per tonne when grain sits in commercial storage.
"The direct delivery program only addresses part of the cost farmers
are forced to pay because of the CWB inefficiencies in moving grain to
market." McBain pointed out.
Wheat and barley moving to market under the CWB system sits in commercial
storage 65 - 70 days, costing farmers some $80 million annually.
When delivering to a domestic mill or malt plant, farmers are charged rail
freight to Vancouver or Thunder Bay, even if the flour or malt is
not exported via the ports. The rail freight charge amounts to $30 - $35
per tonne.
"Charges for freight should also be refunded to farmers who deliver
to domestic mills and malt plants" stated McBain.
"If the CWB truly wants to reduce the cost to farmers and enhance the
value-added industry in western Canada, they need to allow market forces
to work freely. Removing the CWB involvement and monopoly on sales of
wheat and barley to domestic processors would benefit farmers and
encourage increased value-adding here at home. This step is long
overdue" stated McBain.
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