In the "Roaring 20s", wheat was being produced at record amounts and record prices by Canadian farmers. Nevertheless, when countries like Argentina and Australia emerged and produced wheat crops, the competition in the international market increased. Wheat was now being overproduced and the price of wheat began to fall. As international sales declined, so did the farmer's incomes. Consequently, farmers had financial troubles, as they were unable to afford basic necessities, along with paying off their mortgages and loans.
To keep grain prices relatively stable and to market Canadian wheat, the Canadian Wheat Board (CWB) was developed in 1935. During the Depression, this board was the sole buyer and seller for Prairie wheat and barley that was to be exported to other countries or to be consumed in Canada. Before WW1, individual western farmers were primarily concerned with the fact that they did not possess much control compared to the control that large grain handling companies had. Farmers did not want to be exposed to unfair pricing by these companies. After the war, farmers were still concerned because of the unstable prices that were a result of the growth in competition in the international market. For that reason, this board was created.
Examples of Marketing Boards in Canada today:
http://www.eggs.ca/
http://www.dairyfarmers.ca/
http://caen-keepexploring.canada.travel/
To keep grain prices relatively stable and to market Canadian wheat, the Canadian Wheat Board (CWB) was developed in 1935. During the Depression, this board was the sole buyer and seller for Prairie wheat and barley that was to be exported to other countries or to be consumed in Canada. Before WW1, individual western farmers were primarily concerned with the fact that they did not possess much control compared to the control that large grain handling companies had. Farmers did not want to be exposed to unfair pricing by these companies. After the war, farmers were still concerned because of the unstable prices that were a result of the growth in competition in the international market. For that reason, this board was created.
Examples of Marketing Boards in Canada today:
http://www.eggs.ca/
http://www.dairyfarmers.ca/
http://caen-keepexploring.canada.travel/