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Canadian Wheat Board

Prairie strong, worldwide

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2000

September 20, 2000

CWB asks CGC to enforce the Canada Grain Act

Winnipeg -- In response to grain company threats to refuse to unload rail cars coming from Northwest Terminal at Unity, SK, the CWB has asked the Canadian Grain Commission (CGC) to enforce the Canada Grain Act and ensure the cars are unloaded.

Northwest Terminal secured the additional rail cars through the CWB's tendering process and the Canada Grain Act clearly states that terminals must unload the cars if there is space. Failing to do so can result in the terminal being fined or having its license removed.

"The CWB will not stand idly by and let the grain transportation system grind to a halt to the detriment of farmers," said Adrian Measner, Executive Vice-President of Marketing. "It's one thing for the companies not to participate in the tendering process. It's quite another for them to illegally try to punish those independent companies that do take advantage of the tendering process."

As shipper, the CWB has contacted the railways to ensure the grain is moved to port position.

"If the CWB did not have a role in transportation, the independent companies and farmer-owned terminals would be at the mercy of companies with terminals at port," said Measner. "This could result in farmers having fewer options and less competition for their deliveries in the country."

The federal government announced transportation legislation in June that stated 25 per cent of the CWB's grain movement must be through tendering. The CWB has proceeded to make the system work as effectively as possible. The grain companies, who originally lobbied for tendering, have refused to tender.

"Some of the smaller companies obviously believe the risk is manageable and have tendered," said Measner. "You'd think all companies would be interested in the revenue and movement tendering would provide."

The CWB is the world's largest farmer-controlled wheat and barley marketer. Headquartered in Winnipeg, Manitoba, it is one of Canada's biggest exporters and the largest net earner of foreign currency. Marketing Prairie-grown wheat and barley to over 70 countries around the world, the CWB returns all sales revenue, less the costs of marketing, to farmers in Western Canada.

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