Pulling the Plug on Monopoly Power: Reform for the Canadian Wheat Board
AbstractChange is in store for the Canadian Wheat Board (CWB), which has the legal authority to purchase all Western Canadian wheat and barley produced for export and for domestic human consumption. The CWB defends the continuation of this legal authority on the premise that by selling together, Western Canadian farmers exert more market power in wheat markets and receive higher returns than they could if competing against each other. However, the declining global market share of Canadian wheat makes it increasingly unlikely that the CWB is able to exert market power: the CWB is a price taker in many markets. In the absence of strong evidence that the CWB is able to achieve its policy goal of higher returns to farmers because of the compulsory purchase of grains, its monopoly over Western Canadian wheat and most barley sales should be reconsidered with an eye to ending it.
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Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 118.
Length: 6 pages
Date of creation: Jun 2011
Date of revision:
Publication status: Published on the C.D. Howe Institute website, June 2011
Governance & Public Institutions; Canadian Wheat Board (CWB); monopoly;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-08-09 (Agricultural Economics)
- NEP-ALL-2011-08-09 (All new papers)
- NEP-REG-2011-08-09 (Regulation)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W. H. Furtan & D. F. Kraft & E. W. Tyrchniewicz, 1999. "Can the Canadian Wheat Board Extract Monopoly Rents? The Case of the Spring Wheat Market," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(3), pages 417-437.
- Mulik, Kranti & Koo, Won W., 2006. "Substitution Between U.S. And Canadian Wheat By Class," Agribusiness & Applied Economics Report 23615, North Dakota State University, Department of Agribusiness and Applied Economics.
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