Examines Canada and Australia's grain export marketing systems, government assistance to wheat producers during the last 5 years, their export credit systems, and new export practices.
The Canadian Wheat Board is a monopoly seller of western Canadian wheat, durum, and barley for human consumption, and feed wheat for export. In this study, the authors first examine Canada's position in the world wheat & barley markets and the Board's role relative to multinational grain companies (MGCs). Chapter 3 presents the regulatory framework governing the Canadian grain industry. The single- desk selling concept of the Board is examined from a theoretical perspective in chapter 4. This chapter also describes the structure of the world wheat & barley trade in which MGCs play key roles. Recent changes in government policies in the US, the European Union, and Canada are discussed in chapter 5. Chapter 6 discusses state trading in grain, the World Trade Organization (WTO) attempts to discipline state trading enterprises, and the Board's impact on trade in the WTO context. Chapter 7 covers the numerous confrontations concerning Canada-US grain trade. Chapter 8 focuses on the debate over creation of a dual market for feed barley. Chapter 9 examines the Charter of Rights case brought against the Board by barley producers & organizations. The focus of chapter 10 is grain transportation, its regulatory framework, and the Board's roles in the grain transportation system. Chapter 11 examines the Board's economic performance. Chapter 12 discusses the marketing of flax and canola in order to better understand how the Board can achieve price premiums and eliminate inefficiencies when marketing grains. The Board's ability to introduce additional price & marketing flexibility is discussed in chapter 13, including the implications of providing the option for using futures markets. Chapter 14 explores the debate over dual marketing and its viability for western Canadian grain producers. The final chapter draws overall conclusions.
This detailed account tells the background story of a privatised monopoly whose sharp practices embroiled a national government in scandal and shocked a nation that prides itself on the strength of its institutions. AWB Limited, the former Australian Wheat Board that in the 1990s was sold into the private sector, paid more than $US200m in kickbacks to the pariah regime of Saddam Hussein in Iraq, exploiting the provisions of the United Nations’ Oil for Food program by inflating the price of the wheat it sent there to disguise the pay-offs that secured the contracts. The ensuing uproar threatened the careers of key cabinet ministers in the Howard government and contributed to the rise and subsequent election victory of the Australian Labor Party’s Kevin Rudd.