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Canadian Wheat Board

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Value added

The CWB is committed to facilitating and encouraging economically viable value-added processing in Canada because it increases domestic demand for wheat and barley. This helps the CWB fulfill its mission of generating higher returns for farmers.

Farmers have indicated their support of value-added processing, but not to the detriment of their own returns. The CWB has met this desire with a transparent, consistent marketing structure that treats all processors equitably and provides a stable supply of wheat and barley. This marketing structure puts Canadian grain processors on equal footing with each other and with mills and malting plants in the United States, while still ensuring the best return for Prairie farmers.

The Canadian National Millers Association has publicly stated its satisfaction with our approach to competitive pricing and its willingness to continue to work with us.

A test open market would bring this marketing structure to an end and would instead allow processors to offer farmers lower prices for their grain. New value-added enterprises with lower start-up capital and smaller volume needs would be unable to compete against large multi-national companies with the ability – and financial backing – to buy large volumes at a discount.

Destroying the domestic marketing structure and forcing farmers into a position of reduced returns cannot be considered a trade-off for increased value-added processing. That's because demand - not pricing - is what drives value-added processing.

The Canadian National Millers Association is aware of this fact and has publicly stated that creating increased manufacturing capacity does not necessarily lead to increased market demand.

Without an increase in consumer demand to purchase the processed products or increased consumption levels by consumers, even the most advanced, most well-capitalized value-added ventures will end up fighting for a small slice of the market-share pie – but the total market will not get bigger.

The CWB's marketing structure allows farmers to get the best price possible, while also allowing for a healthy, growing processing industry that provides a market for western Canadian grain.

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