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Dual Market
It's been called the "Dual Market"
Wheat growers in Ontario used to sell their grain under a single desk, similar to the marketing structure used by western Canadian wheat and barley growers through the CWB.
But that came to an end when Ontario wheat farmers decided to go it alone. Preliminary numbers indicate that the loss of the single desk has hit Ontario farmers hard.
Posted prices at southern Ontario mills are close to $1.00 per bushel lower than what Prairie wheat farmers are getting at the same locations. For example, the price for CWRS sold through the CWB to a southern Ontario destination was $6.77 per bushel on March 25, 2004. On the same day, cash prices available to Ontario farmers for Hard Red Spring wheat - roughly the equivalent grade - were under $6.00 per bushel.
The loss of Ontario single desk has meant the loss of the Ontario wheat growers' marketing clout, and with it, reduced returns.
The lesson is clear and important. When farmers sell together through the CWB, their power to get the best price increases.