March 13, 2008

Viterra expects Canadian government's barley amendments to pass

Amendments introduced by Canada's minority Conservative government on March 3 aimed at removing barley monopoly powers of the Canadian Wheat Board are likely to be passed, a top Viterra official said.

Fran Malecha, Viterra's chief operating officer, said the company was well positioned in either event but still felt the amendments would indeed pass.

Malecha said that any change in barley marketing would not occur until the 2008-09 crop year, which begins on August 1.

One of the proposed amendments introduced would clarify that the federal government has the authority to repeal a regulation that extends the CWB's monopoly over barley.

This would allow farmers to sell their barley to any foreign or domestic buyer, including the CWB.

The proposed amendments to the CWB Act also include a requirement respecting commercial dispute resolution.

This would encourage producers and grain-elevator companies to pursue the option of commercial arbitration, with the CWB, instead of resorting to the court system, which can be lengthy and costly.