September 25, 2008
Canada likely to end single desk grain trading
Canadian grain growers are preparing to follow the Australian lead and dump their single desk for wheat and barley exports.
The country goes to the polls on Tuesday, October 14th 2008 and if the ruling Conservative Party is re-elected, it promised to dismantle the Canadian Wheat Board which currently has a monopoly on export wheat sales.
Australian growers are facing their first harvest in a de-regulated grain market, having scrapped their single desk earlier this year.
Canadian market analyst Mike Jubinville says Canadian growers are watching to see how the new Australian model of grain trading will work.
He said Canada finds itself basically alone now as one of the last state trading enterprises in terms of marketing grains and oilseeds. He added that the trend now seems to be deregulation, with an eye cast towards Australia as to how that new environment is going to unfold.
