Ottawa, Canada
May 14, 2007
USDA/FAS GAIN report CA 7026
Report Highlights
On April 21st 2007, Canada
published its proposed regulations amending the Canadian Wheat
Board (CWB) regulations, the purpose of which is to remove the
CWB’s monopoly (single desk) powers over inter-provincial and
export trade in barley. The government has given August 1st,
2007 as the implementation date. With a global supply shortage
and high market prices for barley, producers who have not yet
delivered to the CWB may not honor their contracts with grain
companies, thereby potentially forcing the latter to pay the
current, higher, market price. Both the federal government and
the CWB appear to be unwilling to force grains producers to
honor their contracts, as doing so would risk alienating them
before a possible upcoming national plebiscite on retaining the
single desk for wheat. In addition to the Canadian and U.S.
grain companies, their customers – Canadian and some U.S.
malting companies – also stand to be adversely impacted by this
situation.\
Full report:
http://www.fas.usda.gov/gainfiles/200705/146281042.pdf
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