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2003
ITC hears evidence of CWB's fair trade practices
September 8, 2003
Winnipeg – American millers and pasta makers buy Canadian wheat for its high quality and consistency and despite its higher price, according to milling executives who testified at the International Trade Commission (ITC) hearings on September 4 in Washington, D.C. Their detailed testimony contradicts claims made by U.S. special interest groups that the CWB is an unfair trader.
The ITC is investigating whether or not imports of Canadian spring wheat and durum have injured U.S. farmers. Tariffs imposed by the U.S. Department of Commerce in August of 14.16 per cent on Canadian spring wheat and 13.55 per cent on durum will be retroactively removed if no injury can be shown. The ITC is expected to announce its decision by October 14, 2003.
"From my nine years of direct dealings with the Canadian Wheat Board, I can testify to the fact that they are not and have never been underselling the U.S. durum market prices," said David Potter, Executive Vice President of the American Italian Pasta Company (AIPC), the largest pasta producer in the United States. "We are willing to pay the premiums for Canadian durum because we offset the cost with better mill yields and improved product quality from the cleaner grain, lower ash, better colour pigmentation and lower damage."
Greg Viers, wheat procurement manager for Barilla America, explained why Barilla pays a premium for Canadian durum wheat. "Any time you are producing a product for sale, whether it's cars or wheat, the producer must know what end-users need. The Canadians are doing a better job of providing what the end-users' needs are," he said. Barilla has positioned itself as one of the highest quality pasta makers in the world.
Alan Koenig, director of grain for Milner Milling and Pendleton Flour Mill, dismissed charges made by the North Dakota Wheat Commission that Canadian wheat imports are driving down prices in the U.S. market. "In all my years in the grain industry, I have never seen Canadian wheat priced cheaper than U.S. wheat," he said.
Also testifying were senior executives from Italgrani USA Inc., Bay State Milling Company, Miller Milling Company, A. Zerega's Sons Inc. and New World Pasta, all part of the North American Millers' Association (NAMA). With 46 member companies operating 170 mills in 38 states, NAMA's membership represents about 95 per cent of the total U.S. milling capacity.
"The evidence presented was detailed, explicit and clearly established that the CWB is trading fairly in the U.S. market," said Ken Ritter, chair of the CWB board of directors. "Far from undercutting prices, Canadian wheat and durum is fetching a premium. I am confident that when the ITC makes its decision based on the facts, the duties will be removed and we will once again be able to meet the needs of our American customers."
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
Communications consultant
Winnipeg, MB
tel: (204) 983-4497
