Canadian Wheat Board president Ian White thanked agriculture minister Gerry Ritz for his support after signing a record $100 million three-year malting barley sales deal with China.
The deal was announced April 15 during a week-long trade mission to China led by Ritz.
“Western Canadian farmers have achieved a significant piece of a premium business in a highly competitive and volatile market,” White said in a statement issued by the wheat board.
“The support of minister Ritz is important to achieving these types of positive outcomes for producers.”
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However, Ritz didn’t return the favour when announcing the sale during a telephone news conference from Beijing.
He said Canada has been selling wheat to China for 50 years and the new deal will take the relationship into the future.
“I was proud to witness the Canadian Wheat Board’s signing a memorandum of understanding that guarantees $100 million in malt barley sales,” Ritz told reporters.
“And I know that some of you are thinking, so let me be clear. Our government agrees with farmers when they tell us they deserve the freedom to market their own barley, but the reality is that the board currently handles the barley marketing business and it’s in everyone’s interest to make sure business is good.”
He said there is “a world of opportunity” for agricultural trade with China.
“This deal will make sure there’s a strong market share for Canadian barley farmers.”
As if to make it even more clear that the Conservative government doesn’t like the CWB, transport and infrastructure minister John Baird used an unrelated question in the House of Commons the same day to take a swipe at the board and its New Democratic Party supporters.
NDP leader Jack Layton had asked when the government is going to become more accountable to Canadians through better access-to-information performance and more information on controversies surrounding the government.
Baird dredged up the three-year-old battle over government attempts to make the wheat board subject to access-to-information laws under the Accountability Act.
“When we tried to put a little light on the Canadian Wheat Board, the NDP stood up to put a cloak of darkness,” said Baird.
“Where there was darkness, we brought light. We overruled the NDP and we have a lot to be proud of when it comes to accountability.”
Layton shook his head.
The deal between the wheat board and China’s grain importer is the largest ever signed by the board. It guarantees China will buy at least an additional 150,000 tonnes each year for the next three years and at least 500,000 tonnes over the course of the deal.
On average, Canada has exported 400,000 tonnes of malting barley per year to China, where increasing prosperity and the rise of a large middle class are increasing beer consumption.
The board said the new deal means sales will far exceed that average this year.
However, CWB communications director John Lyons said April 16 the new sales are not necessarily in addition to the traditional export levels.
“The 150,000 is a guaranteed minimum to one (major) Chinese buyer, so given that sales can be somewhat volatile, it’s great to have a minimum locked in.”
Prices will be negotiated at the time of sale, and White said at current prices, it would earn at least $100 million for prairie barley producers.
