Thursday, May 26, 2011

Canada's Wheat Market Restructuring

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photo: flickr
Legislation is underway to change the way in which Canada's wheat is marketed. In 2012, the Canadian Wheat Board will no longer be in control, a system which has been in place for eight decades. CWB has been in charge of buying and selling all wheat produced in Canada. It employs approximately 2,000 people in Winnipeg and was responsible for $850 million in GDP in 2005. Richardson, Cargill and Viterra currently act as agents for the CWB. The change may mean new opportunities for Archer Daniels Midland Co., Bunge Ltd. and Louis Dreyfus. The established system utilizes the port of Churchill and the Hudson Bay Railway to move grain. The U.S. currently imports 8% of Canadian wheat. (See Winnipeg Free Press)