VAUXHALL, Alta. — The Canadian International Grains Institute is proceeding without its largest funding partner.
As of April 1, the Canadian Wheat Board will no longer fund CIGI’s market development work.
Rex Newkirk, director of research and business development for CIGI, said initial fears have faded about the future of the institute when the wheat board no longer has a monopoly on wheat and export barley and thus no longer provides funding.
Newkirk said the CWB spent about $4.5 million annually on market development, much of it through CIGI.
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To replace that money, Newkirk said the federal government has promised to implement a temporary levy on wheat, barley and durum to carry CIGI through until more formal arrangements are made.
CIGI has proposed a 25 cents per tonne levy on wheat, durum and export barley but the government has yet to reveal its plan.
“We feel that 25 cents would allow us to carry on with that market development work and we’d also have to take over some of the roles that the wheat board played in that market development as well.”
The temporary levy, expected to start Aug. 1, could last as long as five years, said Newkirk. Within that time it is expected a formal structure will be developed to manage checkoffs for both CIGI and the Western Grains Research Foundation.
“It’s quite a dynamic time for CIGI, really,” Newkirk said at the Alberta Soft Wheat Producers Commission meeting Feb. 16.
“Now, instead of being directed by the wheat board, and being responsible to them for the work that was occurring, now we’re responsible directly to the producer, so it’s one more step closer.”
The federal government has committed funds to continue CIGI operations between April 1 and Aug. 1.
Newkirk also expects CIGI will take on a role in market analysis formerly done by the wheat board but the extent will depend on federal government funding.
