Newsroom
2000
December 13, 2000
CWB shows flexibility to ensure farmers' grain moves
Winnipeg - The Canadian Wheat Board (CWB) announced today it would
delay the implementation of the car awards program as a result of
several grain companies refusal to handle farmers' grain.
The car awards program was designed to distribute rail cars to
grain companies based on where farmers signed their contract and
delivered grain. Members of the Western Grain Elevator Association
(WGEA) have indicated they will refuse to load farmers' grain
unless the program is based on historical entitlements.
Over the course of the last several months, the CWB has made
changes to the program reflecting concerns the WGEA has raised.
Despite this, Saskatchewan Wheat Pool, United Grain Growers, James
Richardson International, Agricore, Cargill, Parrish and
Heimbecker, Paterson Grain, ConAgra, Weyburn Inland Terminal, and
Louis Dreyfus threatened to go on strike this week if the CWB
proceeded with implementation. If the companies followed through on
their threats it would result in lost sales opportunities, damage
customer relations and make farmer deliveries into the grain
elevator system significantly more difficult.
"We designed the car awards program to give farmers some much
needed control in the transportation system and still think it is a
good, commercial way of awarding rail cars," said CEO Greg Arason.
"However, we aren't willing to jeopardize farmers' livelihoods. As
a result of the strike threat, we will delay the program to ensure
farmers' grain continues to move and customers' orders are
filled."
The CWB expects that in delaying this program, the companies will
negotiate in good faith from this point forward.
"We will continue working toward a commercial system that serves
the interests of farmers," said Arason.
Greg Arason will answer media questions on this subject via
teleconference at 3:30 p.m. today. If you wish to register please
contact Justin Kohlman at (204) 983-3101.
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.