Western Canada’s four major grain companies have been talking to federal government officials, including Canadian Wheat Board minister Chuck Strahl, about how to move from the CWB’s single desk system to an open market.
Agricore United, Saskatchewan Wheat Pool, JRI International and Cargill say the discussions have been solely about technical and operational issues associated with such a change.
Those include the board’s financing, its future role in transportation and car allocation, risk management and how to provide the board with access to grain handling and transportation in an open market.
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The companies emphasize they haven’t expressed any views to the government on whether the wheat board’s sales monopoly on all western grown wheat, malting barley and exported feed barley should stay or go.
They say it’s crucial that the government formally involve grain handlers in CWB reform discussions soon, whether through its task force or another process.
“We are not just redefining one player in the industry, we are going to be redefining the whole industry, including our future as a company,” said Cam Dahl, director of government relations and policy development for Agricore United.
AU submitted a five-page document to the government before a July 27 meeting in Saskatoon between CWB minister Chuck Strahl and a number of pro-open market groups and individuals, and later received a letter from Strahl thanking the company for its input.
At a news conference following the July meeting, Strahl said grain company officials had not been invited to participate because they would compete with the CWB in an open market and it would be inappropriate for them to have a role in determining the board’s future. However, grain companies are members in some of the organizations that attended the meeting.
Jean-Marc Ruest of JRI International said his company hasn’t made a formal submission to the government, but has had “communications and meetings” with the minister and his staff and has offered to provide information and advice on operational questions.
He said he sees no reason why grain handlers should be left out of the discussions, especially given their sizable investments in infrastructure and local communities. Grain companies can also provide useful advice and information to ensure a smooth transition, he said.
“I think we are essential participants in this discussion,” Ruest said. “Unfortunately, there seems to be a tone out there that somehow we’re a menace to the industry and have to be put on the sidelines.”
Single desk supporters say the grain companies shouldn’t be involved because they have a vested interest in turning the wheat board into an ineffective and noncompetitive player in an open market.
Ruest rejected that, saying grain companies want to be involved to ensure a new system is fair and balanced for all stakeholders.
Cargill spokesperson Robert Meijer confirmed his company has had discussions at the ministerial and bureaucratic levels on operational issues and has avoided making comments on the policy side.
“We have consistently and specifically said to our customers and our producers and to government that we’re not going to stick our nose in there,” he said. “We are here for consultation when needed on the issues where we’re needed.”
Meijer said Cargill will co-operate with the federal task force if invited, but will deal only with technical issues, adding it’s more important that the wheat board join in the discussions.
Saskatchewan Wheat Pool vice-president Fran Malecha said his company has made no formal submissions to the government but has provided “some input” on issues such as car allocation and CWB access to infrastructure.
He expects the task force will seek more advice from grain handlers, and the pool is prepared to take part.
He also thinks the four week time frame for the task force to complete its work will be difficult.
