Strong Earnings, Strategic Plan Outlined in CWB Annual Report

Feb 22, 2011 | Corporate Member News

The CWB has released its annual report for the 2009-10 crop year, showing gross revenues of $5.2 billion. The earnings were among the highest in CWB history, attributable to strategic marketing of a large and high-quality crop during relatively strong international commodity prices. Only four other years saw higher total revenues.

CWB exports of wheat and barley during the year, at 18.7 million tonnes, were the highest in a decade. Overall CWB administrative costs in 2009-10 increased by 2.4 per cent from the previous year, to $70.5 million or nine cents per bushel.

The annual report, entitled Bringing us All Together, also contains highlights of the CWB’s five-year strategic plan. The 2009-10 crop year was the first full year of execution of the plan, squarely focused on adding value for all farmers in Western Canada.

Allen Oberg

“This plan is rooted in a commitment to listen to farmers, to serve them and to add value to their business operations,” said CWB board chair Allen Oberg, who farms near Forestburg, Alberta. “To achieve its goals, we must be receptive to changes that will allow us to deliver on our commitments. This means being flexible and innovative as we all work together to face the challenges ahead.”

The 2009-14 strategic plan is based on four pillars: operate efficiently and effectively; deliver the right services to farmers; manage the customer base; be a growing and thriving organization.

Examples of achievements during the year include introducing changes to CWB delivery policies and programs for farmers, as well as increased activity in branding western Canadian wheat in the international marketplace. This involved expanding a national consumer-based campaign in partnership with Robin Hood Flour; promoting Prairie durum during the 2010 Winter Olympics in alliance with Primo Pasta; and launching a promotional campaign for bakers in Ecuador with the flour miller Moderna Alimentos.

“At every level of CWB operations, we are striving to ensure clear objectives, performance measures and strategies are in place that can serve farmers better and promote Prairie grain around the world,” Oberg said.

The annual report also outlines CWB results against key performance measures, developed to enhance accountability to its farmer stakeholders. The CWB’s approach to marketing earned Canadian farmers significantly more than their competitors. The net per-tonne price spread realized by the CWB compared to competitors’ values for wheat, durum and barley sales was $4.90 for wheat, $11.16 for durum and $13.71 for designated barley.

“In retrospect, 2009-10 was a good year for western Canadian farmers and their marketing organization,” Oberg said. “Not only did unexpected fall weather save our crops, but prices started improving again and CWB staff worked hard to make the most of those factors. It was a year that once again demonstrated how strong we can be when we work together as farmers.”

The report is available online at . Printed copies can be ordered by e-mailing [email protected] or by calling 1-800-275-4592. A summarized “Report to Producers” will be inserted into the next issue of the CWB’s Grain Matters publication, which will be mailed to all permit-book holders at the end of this month.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada’s biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all revenue, less marketing costs, to farmers.

For more information, please contact:

Maureen Fitzhenry
CWB media relations manager
Tel: (204) 983-3101;
Cell: (204) 227-6927
[email protected]

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