CWB Maintains Export Barley Monopoly

WINNIPEG - Aug 1/07 - SNS -- A federal conservative cabinet order stripping the Canadian Wheat Board of its monopoly control over export barley markets was overturned was by the courts today.

Madam Justice Dolores Hansen ruled the federal cabinet does not have the authority to change the way barley is marketed. The judge ruled that under the Canadian Wheat Board Act only Parliament has that authority.

"The farmer-controlled board of directors has gone a long way to provide flexibility in terms of pricing, payment and delivery -- and we've got plans to go even further," said Ken Ritter, chair of the CWB's farmer-controlled board of directors. "We will work hard to find new ways to create marketing choices for farmers without stripping away the marketing power of their single desk".

While today's ruling means the single desk remains intact for barley, Ritter says it will not be "business as usual". The CWB will accelerate the evolution begun several years ago to transform the corporation into an entity that effectively responds to farmers' business needs without sacrificing market premiums generated through the power of the single desk.

"Now that the court has brought clarity to the process, our path is clear to continue with renewed vigour to make improvements that producers want for their marketing organization," Ritter said.

Today's ruling affirms farmer control of this organization and is good news for all farmer-controlled marketing agencies," said Ritter. "Ten of the 15 members of the board of directors are democratically elected farmers and we, together with our government-appointed colleagues and our CEO, are responsible for charting a course to take the CWB into the future."

The CWB had argued that it was beyond the federal government's jurisdiction under the Canadian Wheat Board Act for the government to push through regulatory change and that the 1998 amendments to the CWB Act gave control of the CWB to farmers, not the government.