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Can the Canadian Wheat Board Extract Monopoly Rents? The Case of the Spring Wheat Market

  • W. H. Furtan
  • D. F. Kraft
  • E. W. Tyrchniewicz
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    The Canadian Wheat Board (CWB) is a monopoly seller of wheat, durum and malting barley from western Canada. This paper examines the question whether the CWB monopoly can extract a premium in the international market place. Using actual transaction data (i.e. actual transaction prices) we estimate that the CWB charged importers an average price premium of $13.35/tonne for wheat over the period 1980-94. In periods when high quality wheat was in short supply the CWB was able to charge higher premiums.We also show that during the period of export subsidies the CWB earned farmers a premium by avoiding subsidized markets.

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    Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

    Volume (Year): 6 (1999)
    Issue (Month): 3 ()
    Pages: 417-437

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    Handle: RePEc:taf:ijecbs:v:6:y:1999:i:3:p:417-437
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    1. Wilson, William W. & Gallagher, Paul W., 1988. "Differentiation and Implicit Prices in Export Wheat Markets," Staff Papers 146454, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Chris M. Alaouze & A. S. Watson & N. H. Sturgess, 1978. "Oligopoly Pricing in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 173-185.
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