Saskatoon, Saskatchewan
December 22, 2006
An in-depth analysis of
Canadian Wheat Board (CWB)
marketing of barley by a research trio from the
University of Saskatchewan (U
of S) and two U.S. universities shows consistent benefits for
producers under the single-desk system.
The Canadian Wheat Board and Barley Marketing report was
completed for the CWB.
"Given the upcoming barley plebiscite in January, we thought it
was important to provide these research results to producers,"
said U of S agricultural economist Richard Gray, who co-authored
the report.
The report provides an overview of world barley trade for both
malting and feed barley and has a review of recent feed barley
studies. Analysis looked at actual CWB sales contract data for
the 1995/96 to 2003/04 crop years. Major findings include:
-
$59 million:
annual loss in barley producer revenues if a multiple-seller
structure had been in place over the 1995/96 through 2003/04
period
-
$35.25 per
tonne: annual average price difference between what the CWB
received for six-row malting barley and what a
multiple-seller structure could have earned from 1995/96 to
2003/04
-
$40.29 per
tonne: annual average price difference between what the CWB
received for two-row malting barley and what a
multiple-seller structure could have earned from 1995/96 to
2003/04
-
CWB is able to
exercise market power which creates more sales revenue for
Western Canada's farmers
-
Benefits of
the CWB single-desk seller marketing system are largest for
malting barley
-
At least since
2000, Canada's feed barley prices have been consistently
higher than those in the United States
Gray's co-authors on the report
are Andrew Schmitz (Ben Hill Griffith Chair,
University of Florida) and
Troy G. Schmitz (Associate Professor,
Arizona State University).
Copies are available for download at
www.kis.usask.ca/color>. |