A group of durum growers plans to press forward with efforts to get an exemption under the Canadian Wheat Board act.
The durum growers want to start a pasta plant either in Western Canada or in a neighboring state. The plant, proposed by Prairie Pasta Producers, would operate as a new-generation closed co-operative.
On March 19, the growers learned they would not be granted an exemption under the wheat board act, which would have allowed closed co-op members to sell directly to the plant, bypassing the board.
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Prairie Pasta Producers, which represents more than 600 durum growers from Canada and the United States, was disappointed by the decision. A spokesperson for the group believes lack of an exemption could undermine the plant’s viability.
“If they think we’re just going to sit back and accept things the way they are, they’ve got another thing coming,” said Allan Brigden, who farms near Kisbey, Sask.
Prairie Pasta Producers hoped to have a business plan completed this spring that would help determine whether the plant is feasible, where to locate it, what products to make and where potential markets exist for the finished product.
The milling and pasta plant could process up to five million bushels of durum a year. That potential has drawn interest from durum growers in Saskatchewan, Manitoba, North Dakota and Montana.
But Brigden said it will be hard to finish a business plan until the question of an exemption is resolved.
“We’re not going to go back and do a business plan based on this scenario. We’re still moving ahead, but this is our priority.”
Jim Thompson, CWB senior marketing manager of domestic sales, attended the March 19 meeting when wheat board officials met with Prairie Pasta Producers about a possible exemption.
Thompson said he thought the meeting helped convince Prairie Pasta Producers that the viability of the proposed plant did not hinge on an exemption.
He does not believe the proposed pasta venture will be hindered by working within the pricing and buying options of the CWB.
The pricing, referred to by Thompson as domestic human consumption prices, would put the plant on “equal footing” with processors in Canada and the United States, he said.
The final outcome could set a precedent for new-generation closed co-ops wanting to use grains that come under the CWB’s marketing monopoly.
Prairie Pasta Producers now hopes to meet with the CWB’s elected board of directors to pursue the issue.
If the durum growers win an exemption, the wheat board would receive details of how much durum was going to the plant each year, Brigden said.
“The wheat board would know everybody in that circle and how many bushels of delivery they are in for.”
