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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


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.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:ijecbs:v:6:y:1999:i:3:p:417-437
    DOI: 10.1080/13571519984160

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    References listed on IDEAS

    1. Wilson, William W., 1989. "Differentiation And Implicit Prices In Export Wheat Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), July.
    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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    Cited by:

    1. Richard Pedde & Al Loyns, 2011. "Pulling the Plug on Monopoly Power: Reform for the Canadian Wheat Board," e-briefs 118, C.D. Howe Institute.
    2. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.

    More about this item


    State Trading; Wheat Marketing; Price Premium;


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