Press Release: U of S Led Team Examines the Value of CWB Single Desk to Barley Producers

December 22, 2006

An in-depth analysis of Canadian Wheat Board (CWB) marketing of barley by a research trio from the University of Saskatchewan and two U.S. universities shows consistent benefits for producers under the single-desk system.

The Canadian Wheat Board and Barley Marketing report was completed for the CWB.

"Given the upcoming barley plebiscite in January, we thought it was important to provide these research results to producers," said U of S agricultural economist Richard Gray, who co-authored the report.

The report provides an overview of world barley trade for both malting and feed barley and has a review of recent feed barley studies. Analysis looked at actual CWB sales contract data for the 1995/96 to 2003/04 crop years. Major findings include:

• $59 million: annual loss in barley producer revenues if a multiple-seller structure had been in place over the 1995/96 through 2003/04 period
• $35.25 per tonne: annual average price difference between what the CWB received for six-row malting barley and what a multiple-seller structure could have earned from 1995/96 to 2003/04
• $40.29 per tonne: annual average price difference between what the CWB received for two-row malting barley and what a multiple-seller structure could have earned from 1995/96 to 2003/04
• CWB is able to exercise market power which creates more sales revenue for Western Canada's farmers
• Benefits of the CWB single-desk seller marketing system are largest for malting barley
• At least since 2000, Canada's feed barley prices have been consistently higher than those in the United States

Gray's co-authors on the report are Andrew Schmitz (Ben Hill Griffith Chair, University of Florida) and Troy G. Schmitz (Associate Professor, Arizona State University). Copies are available for download at www.kis.usask.ca.

For more information, contact:

Richard Gray
Department of Agricultural Economics
College of Agriculture & Bioresources
University of Saskatchewan
Phone: 306-966-4026

Andrew Schmitz
University of Florida
Phone: 392-352-1845 Ext. 415

Michael Robin
Research Communications
University of Saskatchewan
Phone: 306-966-2427

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