Newsroom
2007
CWB responds to inaccurate information on barley prices
October 18, 2007
Winnipeg - Ken Ritter, chair of the CWB's farmer-controlled board of directors, today responded to inaccurate information about barley prices.
Yesterday in the House of Commons, Prime Minister Stephen Harper said: "When it looked like there would be marketing choice for western barley farmers last spring, prices went up. When marketing choice was swept off the table, prices went down."
Ritter pointed out that barley prices have been climbing steadily and that the Prime Minister's comments create the mistaken impression that barley prices move up and down only in response to the prospects of an open market.
Ritter says the full story shows that from June 11 to July 31, 2007, grain companies anticipating an open barley market were offering farmers contracts of up to $4.75 per bushel for malting barley. However, since the federal court decision of July 31, which upheld single desk marketing of western Canadian barley, markets have climbed steadily to the point where the CWB is projecting returns for farmers of up to $5.06 per bushel at an Alberta farmgate. This estimated return may continue to rise as the CWB makes more sales at record values.
"Grain markets are governed by many factors, including supply and demand, competition, quality and customer preference," said Ritter. He noted that Prairie farmers can expect significantly higher returns this year than their American counterparts, due to the disciplined selling of the CWB.
For example, according to the president of the Washington Wheat Commission, many American farmers sold their wheat before the recent price surge - much of it at less than $5 per bushel. The CWB is indicating a return of $6.76 per bushel for No. 1 Canada Western Red Spring wheat 13.5 per cent protein, backed off to an Alberta farmgate.
In the case of durum, a high-quality pasta wheat, U.S. spot values are rising because many American farmers priced at around $7 per bushel when they thought the market had peaked, according to the marketing director of the North Dakota Wheat Commission. The CWB has been able to capture rising market values, recently making sales of Canada Western Amber Durum wheat at values as high as $18.50 per bushel.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs to farmers.
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For more information, please contact:
Maureen Fitzhenry
CWB media relations manager
(204) 983-3101
Cell: (204) 227-6927