Pulling the Plug on Monopoly Power: Reform for the Canadian Wheat Board
Change 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.
|Date of creation:||Jun 2011|
|Publication status:||Published on the C.D. Howe Institute website, June 2011|
|Contact details of provider:|| Postal: 67 Yonge St., Suite 300, Toronto, Ontario M5E 1J8|
Phone: (416) 865-1904
Fax: (416) 865-1866
Web page: http://www.cdhowe.org
More information through EDIRC
References listed on IDEAS
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.:
- 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.
- 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.
- Peter G. Helmberger & Sidney Hoos, 1963. "Economic Theory of Bargaining in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(5), pages 1272-1280.
When requesting a correction, please mention this item's handle: RePEc:cdh:ebrief:118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristine Gray)
If references are entirely missing, you can add them using this form.