Arason Lashes CWB Critics Over Algerian Sales

WINNIPEG - Mar 1/07 - SNS -- Canadian Wheat board (CWB) president and CEO Greg Arason lashed out at misinformation being spread by the U.S. Wheat Associates and several Canadian Members of Parliament about CWB sales in Algeria and the domestic market.

"Making inaccurate statements about sales values and our relationship with specific customers is damaging to our business and, as a consequence, damaging to western Canadian farmers," Arason says in prepared remarks for the House of Commons Standing Committee on Agriculture and Agri-Food. "This is about business - it is not a political debate."

Arason, who was appointed interim head of the CWB in December, reiterates his intention to stay out of the politics surrounding the future of the CWB single desk and instead focus on grain marketing and the smooth operation of the corporation. "However, when factual inaccuracies about the CWB's performance find their way into a public forum, I believe it is my right and my duty to correct that information," he says.

Arason said the U.S. Wheat Associates, a longtime vocal critic of the CWB, began circulating erroneous information last month about CWB sales into Algeria. Without being verified, this message was echoed by a number of government MPs.

"CWB directors have access to detailed sales information on a regular basis. Through this process, the directors can assure themselves that the CWB is in fact obtaining fair value in relation to the values available to its international competitors. . . I would like to state unequivocally that sales of durum to Algeria have been made at competitive market prices."

Arason also took issue with allegations about CWB performance compared to market returns available to Ontario farmers. Information being circulated misleadingly compares the Ontario spot price to a CWB pooled value. In fact, the CWB is achieving $6.95 per bushel for Prairie hard red spring wheat sold to Ontario mills - $1.45 more than the example used to describe Ontario farmer returns.

Arason also says CWB remains ahead of target in marketing the 2006 wheat and barley crop. However, he will warn the committee that the CWB's ability to deliver on its sales and delivery commitments is in jeopardy as a result of serious railway performance issues, exacerbated by severe weather and a CN labor disruption.

"We need government to look seriously at this issue," he says. "We must have assurances that rail service can effectively recover from delays when they occur - and that both railways provide adequate service for grain movement on a sustainable basis."