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Emerging differences in state grain trading: Australia and Canada

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  • Colin A. Carter
  • William W. Wilson

Abstract

The Australian Wheat Board (AWB) and Canadian Wheat Board (CWB) have attracted attention recently because they are two of the largest state trading enterprises (STEs) engaged in agricultural trade. They have traditionally been viewed as nearly sister agencies. Among major STEs in the world market, these two agencies historically had similar characteristics including: price pooling, cost pooling, export sales monopolies, monopoly powers within domestic markets, grain quality control, and government underwriting of initial producer prices and export credit. However, during the past 6 years, similarities between the AWB and CWB have begun to diverge and the importance of their differences is becoming increasingly apparent. This paper identifies major emerging differences between the AWB and CWB and explores potential explanations (hypotheses) for these dissimilarities. A major point is that reforms in institutional design and legislative changes have given rise to emerging differences in key aspects of the marketing systems and performance.

Suggested Citation

  • Colin A. Carter & William W. Wilson, 1997. "Emerging differences in state grain trading: Australia and Canada," Agricultural Economics, International Association of Agricultural Economists, vol. 16(2), pages 87-98, May.
    • Handle: RePEc:bla:agecon:v:16:y:1997:i:2:p:87-98
    DOI: 10.1111/j.1574-0862.1997.tb00445.x
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    Cited by:

    1. Scoppola, Margherita, 2006. "Economies of Scale and Endogenous Market Structures in International Grain Trade," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25322, International Association of Agricultural Economists.
    2. Jeffrey Biggs & Susanna Laaksonen-Craig & Kurt Niquidet & G. Cornelis van Kooten, 2006. "Resolving Canada-US Trade Disputes in Agriculture and Forestry: Lessons from Lumber," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 143-156, June.
    3. O'Keeffe, Patrick, 2014. "The Impact of Wheat Export Market Deregulation upon Wheat Growers in Victoria’s Western Wimmera," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165868, Australian Agricultural and Resource Economics Society.
    4. Dong, Fengxia & Marsh, Thomas L. & Stiegert, Kyle W., 2002. "Imperfect Substitutes, Deferred Producer Payment System, And State Trading Enterprises: An Empirical Test Of Leadership In The Global Malting Barley Markets," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36625, Western Agricultural Economics Association.
    5. Watson, Alistair S., 1999. "Grain marketing and National Competition Policy: reform or reaction?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(4), pages 1-27, December.
    6. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 277-291, September.
    7. Chang, Hui-Shung (Christie) & Martel, William & Berry, Robert, 2003. "Examining AWB’s market power in the international wheat market," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57843, Australian Agricultural and Resource Economics Society.

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