Newsroom
2001
May 28, 2001
Canadian Wheat Board debunks value-added myth
Winnipeg - The CWB today stated that the growth in the
value-added industry for wheat and barley is a Canadian success
story. Recent reports indicating otherwise are completely false and
cannot be left unchallenged.
"The Canadian processing industry for wheat and barley has grown
significantly, especially in the west," said Canadian Sales
Manager, Jim Thompson. "We will not remain silent while some
critics continue to intentionally ignore the facts regarding the
value-added industry to push their own political agendas."
Some of the facts regarding processing in Canada include the
following:
- Per capita processing is greater in Canada than the U.S. and the Canadian growth rate is exceeding population growth, indicating any excess production in Canada is being successfully marketed in a competitive global marketplace.
- In the past decade, Canadian wheat and durum milling has increased 26.4 per cent, compared to 12.3 per cent in the U.S.
- Canada exports more wheat and durum-based products to the U.S. than it imports.
- In the last decade, exports of malt have increased fivefold to more than 710 000 tonnes this past year; malting capacity has grown by about 450 000 tonnes; and bulk malting barley exports have increased 27 per cent. Two-thirds of the malting barley capacity and virtually all of the growth in capacity has been in Western Canada.
- Since 1998, eleven new facilities or expansions have taken place in the wheat and barley processing sectors. Much of the growth has taken place in Western Canada.
The pricing of wheat and barley to Canadian processors is based
on the North American market, ensuring all processors in Canada are
on an equal footing with their American counterparts. In other
words, Canadian processors pay the same value as they would if the
CWB did not exist. At the same time, Canadian processors receive
many advantages such as a guaranteed supply, pricing and hedging
flexibility and professional and technical expertise through the
CWB.
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.