Newsroom
2007
Study shows CWB a major economic force in Canada
Winnipeg – The CWB has a significant economic impact in Winnipeg and in Canada, says a report by PricewaterhouseCoopers (PwC) released today. The analysis cites an $852 million annual net economic impact in Canada in terms of Gross Domestic Product (GDP). It also points to $500 million in annual labour income and $360 million annually in government revenues. The annual economic impact of all transactions that occur, expressed as Annual Gross Output, is pegged at $1.6 billion.
“The results of this study show that the CWB is a major economic force, with Western Canada as a major economic beneficiary,” reads the report. “Not surprisingly, given its continental scale of operations and global marketing reach, the CWB has a huge impact on the economies of Canada and Western Canada.”
The CWB creates thousands of jobs for Canadians, the report notes. In addition to the 460 positions at the CWB, a further 14,239 full-time jobs are created in Canada as a result of CWB expenditures and premiums generated. Of these jobs, 2,294 are located in Winnipeg, including the majority of the positions at the CWB.
In Winnipeg, where the CWB’s headquarters are located, impacts on the city’s economy are significant. The City of Winnipeg can count on an annual GDP of $86 million, more than $66 million in labour income and more than $3 million to local government.
The report says the CWB has a major economic impact on Canada through administrative, capital and direct expenditures and by the generation of a premium for farmers on wheat, durum and barley sales. The CWB generates economic impact through many channels, including through direct costs in the supply chain by taking delivery and shipping agricultural products, through single-desk marketing and associated branding, through administrative spending and through capital investment.
The PwC analysis also noted economic benefits that are more difficult to quantify. These included acting as a voice for farmers on diverse issues ranging from global trade, grain marketing, public policy, scientific research, brand development and transportation reform.
“The CWB has a deep commitment to western Canadian farmers and operates under the direction of its predominantly farmer-elected board of directors,” the report reads. “The CWB is a significant player when it comes to helping farmers face the challenges in their industry which are critical to their ongoing success.”
The full economic impact analysis, which was prepared for the CWB in June 2005, has been posted on the CWB Web site at www.cwb.ca .
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada’s biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
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Roger Cathcart Senior Manager, Advisory Services PricewaterhouseCoopers Tel: (204) 926-2415 |
B. Jeffrey Johnson Partner, Advisory Services PricewaterhouseCoopers Tel: (204) 926-2441 |
Maureen Fitzhenry CWB media relations manager Tel: (204) 983-3101 Cell: (204) 479-2451 |
Total Sustainable Economic Impacts of the CWB (2004 $) (000’s)
Source: “Canadian Wheat Board: Economic Impact Analysis”, PricewaterhouseCoopers, June 2005
Note: Total Gross Provincial Income is also known as Gross Domestic Product or Value Added. It measures the annual net economic impact direct, indirect and induced) on the income of a province (or the City of Winnipeg) from a company’s initial expenditures. It represents the sum of all value-added contributed at each stage of production. Only final outputs are counted, intermediate inputs are netted out.