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CWB corrects claim by US Wheat Associates and Western Barley Growers re sales to Algeria
In its Dec. 28, 2006 newsletter, the United States Wheat Associates (USWA) claims that the CWB sells durum wheat at very low prices to Algeria. The Western Barley Growers Association (WBGA) repeats this misinformation in a news release dated Jan. 29. The claim is based on a poor translation of an article of a French-language newspaper.
Below are: the CWB's letter on the matter to Alan Tracy, president of the USWA; an accurate translation of the original article in the Algerian newspaper La Liberté; and the original article in French.
Dear Mr Tracy:
I noticed your December 28, 2006 Wheat Letter and its reference to Algeria. We have taken the liberty of advising the contents of your newsletter to Mr. Kacem, the Director General of the Office Algérien Interprofessionnel des Céréales (O.A.I.C.).
Mr. Kacem has advised us that some of his comments in the original article in the French daily were not properly interpreted by the journalist. Mr. Kacem feels the relationship between the CWB and OAIC is a commercial one first and foremost and that prices are based on international market values at the time of business.
A review of the original press article in French clearly shows that at no point does Mr. Kacem say that they enjoy "very low prices". The main message in the Algerian newspaper article centered on the positive commercial relationship the CWB and OAIC have enjoyed since the early seventies. That longstanding commercial relationship is also built on quality assurance, mutual confidence and technical support.
I felt it necessary to provide you with our view on this matter. I ask that you correct this misunderstanding by reprinting this letter in the next edition of your Wheat Letter.
Yours truly,
Greg Arason
President and CEO.
The Canadian Wheat Board
La Liberté
Sunday, December 17, 2006
Canadian Wheat Board
“Algeria is a preferred customer”
(translated from the French)
By: Hamid Saïdani
Canada sells an average of 400,000 to 500,000 tonnes of wheat to Algeria annually.
For years, Canada has been the sole supplier of durum wheat to the Office algérien interprofessionnel des céréales [OAIC – Algerian Interprofessional Grain Board], and it seems likely to remain in that position for a long time to come. Canada offers the Algerian organization an array of guarantees and advantages that cannot be found elsewhere. And the quality of the current crop can only serve to strengthen the exceptional relationship between the two parties. The seminar on the quality of Western Canadian wheat for 2006 organized yesterday by the Canadian Wheat Board at the Mouflon d’Or hotel allowed Algerian and Canadian representatives to discuss this crop and its characteristics. OAIC General Director Mohamed Kacem said he believes the quality of this year’s Canadian crop is “excellent”. According to Kacem, the Bureau’s choice of Canada as sole supplier is based on a number of objective factors that mean “Algeria gains a lot in every respect from this time-tested relationship that is built on confidence.” “It’s the Canadian government that guarantees the quality of the product, since it carries out the quality controls,” he points out, emphasizing that selling prices in Algeria are carefully studied, since our country receives preferential prices, which save Algeria tens of dollars per tonne purchased. And quality monitoring allows Algeria to save over a dollar per tonne processed. According to Jean-Benoît Gauthier, a manager representing the Canadian Wheat Board in Europe, Russia, Central Asia, the Middle East and Africa, Canada sells an average of 400,000 to 500,000 tonnes of wheat to Algeria annually. However, the benefits of doing business with Canada do not end there: according to Kacem, Canada also provides technical assistance in the form of training for executives from the OAIC and the agricultural sector. In addition, the Canadian supplier pays the loading costs, and facilitations are offered with regard to the method of payment. “No other country offers us these advantages,” says Kacem. And Gauthier confirms the privileged status Algeria enjoys in its trade with Canada, stating that Algeria “is one of Canada’s traditional customers, and our relationship goes back to the early 70s.” According to Gauthier, trade between the two countries remains strong in spite of a drop in Algeria’s purchases in recent years, due to the increase in local production stimulated by the National Agricultural Development Plan (Plan national de développement agricole – PNDA). The CWB representative believes that “the relationship between Algeria and Canada in this area is more than just commercial, but it is also a partnership, since many Algerian executives benefit from training or professional development programs in Canada.” With regard to the marketing operation conducted by the Canadian Wheat Board, Gauthier says although “we travel throughout the world to inform our partners about the characteristics of our crop,” Algeria “is of primary importance.”
In other words, despite the fact that they have exclusive access to some markets thanks to the beneficial policy they offer their customers, Canadians are quite prepared to travel around the world to sell their products.
View the original article in French (PDF).