New opportunities are developing in high valued niche markets. The potential for increased revenue from value added processing is growing. Both of these key marketing areas will only become more important in the future as the benefits of the life sciences industry begin to be realized to a greater degree.
Our farmers must be able to move into new and high value areas of production if Canada is going to compete, especially if one considers the growing world production of bulk grains and oilseeds. Our producers need maximum marketing flexibility to accomplish this goal, a flexibility that does not currently exist.
One can look at the differences in the level of processing between commodities controlled by the Canadian Wheat Board (CWB) and those that are independently marketed to see an illustration of the impact that the marketing restrictions are having on Canadian value added processing. For the 2007/08 crop year, the percentages are as follows
- 11% of barley
- 7% of durum
- 19% of non-durum wheat
Compare this to other Canadian grains and oilseeds where in the same time period we see the following percentages of value adding:
- 38% canola
- 50% soybeans
- 30% corn
The question must be asked, "Why is value-added processing in these other sectors of the Canadian grains and oilseed industry so much further advanced than the grains under the jurisdiction of the Canadian Wheat Board?"
Examples of lost opportunities are evident. Malt plants have been built or expanded in the US, when they could have been built in Canada. Farmers have been frustrated in their attempts to develop new processing plants based on the new generation co-op model. Niche marketers, like organic framers have faced impediments that do not exist for commodities outside of the CWB's jurisdiction or by their competitors.
This is why the GGC continues to recommend that Western wheat and barley producers be given the same marketing choice opportunities that exist in other regions of Canada and for other commodities.
