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Canadian Wheat Board

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Newsroom

2001

August 7, 2001

CWB changes will continue in 2001-02

Winnipeg - Ken Ritter, the Chair of the CWB Board of Directors, today said the CWB has to continually strive to improve service to farmers in a time of rapid change. Ritter and CEO and President Greg Arason were speaking at the CWB's annual crop-year-end news conference.

"It seems every week that goes by leads to another major event that affects farmers," said Ritter. "We have to capitalize on those areas where we can lead change to their benefit."

One of the CWB's main objectives is finding ways of getting money to farmers more quickly. Ritter announced that CWB accounting procedures are being streamlined in order to enable an earlier 2000-01 final payment to farmers.

As of August 1, 2001, the CWB also started an early payment option program for Canada Western Soft White Spring wheat and Canada Western Red Winter wheat. The program allows participants to get 90 per cent of the expected value of their product shortly after delivery. Farmers will still be eligible for further payments as the year progresses. These payment options complement the CWB fixed price and basis contracts for wheat and feed barley.

Ritter said the CWB has also listened to farmers who want more accountability. The Board has invited the Auditor General to do a thorough audit of CWB operations and initiated an independent benchmarking study to determine the value of the CWB. The results of both initiatives will be released in the 2001-02 crop year.

"The Auditor General always comes out with suggestions for improvement and I expect that will be the case here at the CWB," said Ritter. "The purpose of this exercise is to learn from his suggestions and make the organization run even better."

Arason said the domestic industry was the largest buyer of Prairie-grown wheat and barley during the past crop year. The Canadian domestic industry bought more than 2.3 million tonnes of wheat and 1.2 million tonnes of malting barley.

"The continued expansion of Canadian processors has resulted in the domestic market regaining its spot as the largest buyer of Canadian wheat and barley," said Arason.

Iran, purchasing more than 1.5 million tonnes, was the largest export buyer of Canadian non-durum wheat for the second consecutive year. The largest importer of designated barley was the United States, taking 600 000 tonnes. Algeria retained its spot as the highest volume customer for durum wheat. Exports of feed barley increased in 2000-01, partly due to the CWB's new barley pricing options. Saudi Arabia was the top customer for feed barley taking 300 000 tonnes.

Due to reduced production in many major growing regions, price outlooks for milling wheat, feed barley and designated barley in 2001-02 are above values for 2000-01. Durum values are
expected to decline as a result of large world carry over and normal production in North Africa.

Media who were unable to take part in the conference can access the proceedings by calling (800) 558-5253 after 3 p.m. Tuesday (reservation #19420514). The taping includes the question-and-answer session and will run until Wednesday at 11 p.m. (Winnipeg time).

Controlled by Western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

CWB's largest volume customer countries, by pool account 1/
2000-01* 1999-2000
WHEAT (excluding Durum)
Country Quantity Country Quantity
000 T 000 T
Canada 2 353 Iran 3 492
Iran 1 539 Canada 2 181
Japan 1 424 Japan 1 242
Mexico 1 196 U.S. 1 082
U.S. 1 026 Mexico 814
DURUM
Country Quantity Country Quantity
000 T 000 T
Algeria 1 344 Algeria 1 453
Morocco 636 Morocco 472
U.S. 362 Venezuela 359
Venezuela 325 Canada 300
Canada 295 U.S. 296
FEED BARLEY
Country Quantity Country Quantity
000 T 000 T
Saudi Arabia 296 Japan 336
Japan 238 Saudi Arabia 163
Iran 110 U.S. 38
UAE 17 UAE 37
U.S. 10 South Korea 21
DESIGNATED BARLEY
Country Quantity Country Quantity
000 T 000 T
Canada 1 150 Canada 1 150
U.S. 634 U.S. 585
China 585 China 428
Mexico 35 Mexico 99
Japan 31 Japan 40
*preliminary
1/Excludes products
Sources: CGC: Canadian Grain Exports, 1999-00
CWB: 2000-01 Sales Programs

Total exports of western Canadian grain by port area, 2000-011, and 1999-00 crop years*
(000 tonnes)
Wheat Durum Barley Oats Rye Flax Canola Total
Vancouver
2000-01 6 299.5 521.2 1 265.7 31.5 17.6 74.6 4 192.6 12 402.7
1999-00 6 758.5 916.3 950.1 27.1 1.4 66.8 3 429.1 12 149.1
Prince Rupert
2000-01 2 053.1 - 2.0 - - - 159.2 2 214.3
1999-00 3 247.6 3.o 109.5 1.1 - - 4 3 365.2
Churchill
2000-01 471.3 25.6 - - - 18.9 - 515.8
1999-00 275.3 87.5 - - - - - 362.9
Thunder Bay
2000-01 726.1 234.7 127.4 224.9 - 424.9 196.6 1 934.6
1999-00 914.7 419.9 254.4 201.5 - 338.1 171.4 2 299.9
St. Lawrence Ports
2000-01 1 644.6 2 268.3 - 1.9 0.4 16 25.1 3 956.3
1999-00 1 636.1 1 810.0 4.3 2.1 - 14.6 - 3 467.0
Atlantic Seaboard
2000-01 14.7 - - - - - - 14.7
1999-00 31.1 - - - - - - 31.1
Interior
2000-01 2 1 289.1 367.5 506.8 753.3 32.8 28.6 146.8 3 124.9
1999-00 1 161.9 300.7 437.2 800.9 36.8 106.2 287.8 3 131.7
Total Exports
2000-01 12 498.4 3 417.3 1 901.9 1 011.6 50.8 563 4 720.3 24 163.3
1999-00 14 025.3 3 537.3 1 755.5 1 032.8 38.2 525.6 3 892.3 24 806.9
1/Preliminary
2/As of July 22, 2001
*Source: Canadian Grain Commission

CWB Payments: 1996-1997 - 2001-02
(In store St. Lawrence or Vancouver, dollars per tonne)
No. 1 Canada Western Red Spring (12.5)
Final
Pool Initial Adjustment Interim Final Realized
Account Payment Payment Payment Payment Return
2001-02 160
2000-01 140 42 - - -
1999-00 134 38 3 5.57 180.57
1998-99 140 39 9 10.85 198.85
1997-98 138 42 8 13.73 201.73
1996-97 194 10 - 12.54 216.54
No. 1 Canada Western Amber Durum (12.5)
Final
Pool Initial Adjustment Interim Final Realized
Account Payment Payment Payment Payment Return
2001-02 169
2000-01 143 69 - - -
1999-00 135 50 20 14.92 219.92
1998-99 140 42 8 15.03 205.03
1997-98 183 81 6 13.28 283.28
1996-97 172 55 - 32.76 259.76
No. 1 Canada Western Barley
Final
Pool Initial Adjustment Interim Final Realized
Account Payment Payment Payment Payment Return
2001-02 110
2000-01 95 36 - - -
1999-00 85 38 7 5.38 135.38
1998-99 85 45 7 10.5 147.5
1997-98 95 16 - 10.02 121.02
1996-97 137 8 - 5.97 150.97
Special Select Canada Western Two-Row Barley
Final
Pool Initial Adjustment Interim Final Realized
Account Payment Payment Payment Payment Return
2001-02 164
2000-01 142 51 - - -
1999-00 130 49 4 3.87 186.87
1998-99 138 20 7 7.36 172.36
1997-98 149 34 4 9.32 196.32
1996-97 180 45 - 3.82 228.82

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