A single desk is a monopoly marketer and buyer of a product with multiple suppliers. They were common in markets for agricultural produce.
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry.
In Australia, the single desk was the monopoly marketing of wheat by the Australian Wheat Board (1939–1999) and its privatised successor, AWB (International) Limited (1999–2008). In this situation, returns from growers were pooled together nationally and the prices averaged by the Board, which covered both domestic and international sales until 1989, when it focused exclusively on exports. In its last year, this was limited further to just bulk exports. [1]
Momentum for change to the export marketing arrangements built up over time, following:
In 1999 Wheat Export Authority was created following passing of amendments to the Wheat Marketing Act 1989.
The Wheat Export Authority (WEA) was established 1 July 1999 as part of restructuring the former government-owned Australian Wheat Board in preparation for its sale as AWB Limited. It was felt that a number of the tasks carried out by the previous Australian Wheat Board would not be appropriate for a privately owned body; thus, the WEA was established. The WEA's role was determined by the Wheat Marketing Act 1989 and its operations were funded by a charge on Australian wheat exports.
In October 2007 Wheat Exports Australia was replaced with the Export Wheat Commission.
The Export Wheat Commission (EWC) was a statutory authority of the Australian government. The EWC was established on 1 October 2007 and superseded the Wheat Export Authority (WEA). The EWC was a statutory commission operating under the Financial Management and Accountability Act 1997.
In July 2008 the Export Wheat Commission was replaced by Wheat Exports Australia.
Wheat Exports Australia (WEA) was established on 1 July 2008, under the Wheat Export Marketing Act 2008. As an Australian Government agency, WEA was established to regulate the export of bulk wheat from Australia through the bulk Wheat Export Accreditation Scheme.
Until 2016, Western Australia had a monopoly purchaser of ware potatoes, the Potato Marketing Corporation of Western Australia. Other single desks existed in Australia, such as Queensland Sugar Limited, the Australian Barley Board, and dairy single desks in each state, among others.
Western Australia is a state occupying the entire western third of Australia. It is bounded by the Indian Ocean to the north and west, and the Southern Ocean to the south, the Northern Territory to the north-east, and South Australia to the south-east. Western Australia is Australia's largest state, with a total land area of 2,529,875 square kilometres, and the second-largest country subdivision in the world, surpassed only by Russia's Sakha Republic. The state has about 2.6 million inhabitants – around 11 percent of the national total – of whom the vast majority live in the south-west corner, 79 per cent of the population living in the Perth area, leaving the remainder of the state sparsely populated.
The Potato Marketing Corporation of Western Australia (PMC) was a statutory corporation created by the Government of Western Australia's Marketing of Potatoes Act 1946. It was charged with managing the supply of fresh table potatoes in Western Australia. The statutory corporation operated to ensure licensed growers supplied potatoes all year round to the WA consumer market. The corporation was self-funded by revenue from licence fees and does not receive financial support from the state government. The agency dictates the varieties and volume in the WA potato market.
ABB Grain was Australia's largest agribusiness. Founded in 1939, the company was listed on the Australian Securities Exchange until its takeover by Viterra in 2009. For most of its history, the company focused solely on grain accumulation and marketing, but it eventually expanded its focus to other activities, such as grain receival and storage, malting and fertilisers. ABB bought grain from all growing regions in Australia and traded in all grain commodities.
The Canadian Wheat Board was Canada's monopoly marketer of wheat and barley grown in the prairie provinces. Its monopoly was removed in 2011, effective August 2012. [2]
The Canadian Wheat Board was a marketing board for wheat and barley in Western Canada. Established by the Parliament of Canada on 5 July 1935, its operation was governed by the Canadian Wheat Board Act as a mandatory producer marketing system for wheat and barley in Alberta, Saskatchewan, Manitoba, and a small part of British Columbia. It was illegal for any farmer in areas under the CWB's jurisdiction to sell their wheat and barley through any other channel than the CWB. Although often called a monopoly, it was actually a monopsony since it was the only buyer of wheat and barley. It was a marketing agency acting on behalf of Western Canadian farmers, passing all profits from its operation back to farmers. Its market power over wheat and barley marketing was referred to as the "Single Desk".
" The CWB’s mandate was to pay farmers a base price for their grain, identify markets, negotiate the best price, deliver the goods, issue advance cheques and make final payment after the crop was sold. If the wheat market went up, farmers pocketed the profits. If the market went down, the government absorbed the loss. Nothing was subtracted from the farmer’s share except the cost of marketing and delivery."
Agricore United was a farmer-directed agribusiness in Canada. It supplied crop nutrition and crop protection products, and offered grain handling and marketing services. It was created on November 1, 2001 by the merger of Agricore and United Grain Growers. It was headquartered in Winnipeg, Manitoba. Its shares were publicly traded on the Toronto Stock Exchange (TSX) under the symbol "AU" until June 15, 2007, when it was taken over by the Saskatchewan Wheat Pool. Agri-business giant Archer Daniels Midland (ADM) had a 28% stake in the company at the time of the takeover.
Larry Maguire is a politician and activist farmer in Manitoba, Canada. Formerly a Progressive Conservative MLA in the Legislative Assembly of Manitoba, he was elected to the House of Commons of Canada in a by-election on November 25, 2013. He is a member of the Conservative Party of Canada and sits on the House Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities and the House Standing Committee on Public Safety and National Security.
A marketing board is an organization created by many producers to try to market their product and increase consumption and thus prices. It can also be defined as an organization set up by a government to regulate the buying and selling of a certain commodity within a specified area. They most commonly exist to help sell farm products such as milk, eggs, beef or tripe and are funded by the farmers or processors of those crops or products. Marketing boards often also receive funding from governments as an agricultural subsidy. The leadership and strategies of the marketing boards are set through votes by the farmers who are members of the board.
AWB Limited was a major grain marketing organisation based in Australia. It was a government body known as the Australian Wheat Board until 1 July 1999, when the AWB was transformed into a private company, owned by wheat growers. In 2010, AWB was acquired by the Canadian firm Agrium, and in 2011 the company changed its name to Agrium Asia Pacific Limited. In 2011, Cargill Australia acquired the AWB Commodity Management business from Agrium. This follows the ACCC's decision on March 17, 2011 not to oppose the acquisition.
The Saskatchewan Wheat Pool was a grain handling, agri-food processing and marketing company based in Regina, Saskatchewan. The Pool created a network of marketing alliances in North America and internationally which made it the largest agricultural grain handling operation in the province of Saskatchewan. Before becoming Viterra, SWP had operated 276 retail outlets and more than 100 grain handling and marketing centres. The Saskatchewan Wheat Pool operated under the name of AgPro in the prairie provinces of Manitoba and Alberta. Begun as a co-operative in the 1920s, the company became a publicly traded corporation in the 1990s. After the 2007 takeover of its competitor, Winnipeg-based Agricore United, the Pool name was retired. The merged company operated under the name Viterra until 2013, when it was acquired by Glencore International.
The Western Canadian Wheat Growers Association (WCWGA) is a private lobbying company located in Saskatoon, Canada. Founded in 1970 as the Palliser Wheat Growers Association, the WCWGA opposes the Canadian Wheat Board's marketing status and supports open market competition in sales of wheat and barley.
Bill Nicholson is a Canadian farmer and administrator, and is one of ten elected directors on the Canadian Wheat Board. Nicholson supports the CWB's single-desk marketing approach as the best option for farmers, and has opposed efforts to introduce open market competition to wheat and barley sales.
Viterra Inc. was a Canadian grain handling business, the nation's largest grain handler, with its historic formative roots in prairie grain-handling cooperatives, among them the iconic Saskatchewan Wheat Pool. Viterra Inc grew into a global agri-business with operations in Canada, the United States, Australia, New Zealand and China. Viterra operated three distinct, inter-related businesses: Grain Handling & Marketing, Agri-Products and Processing, enabling it to generate earnings at various points on the food production chain from field to the table. Following its $6.1-billion acquisition by Glencore International, on 1 January 2013 Viterra Inc was merged with Glencore purchaser, 8115222 Canada Inc.
A wheat pool is a co-operative that markets grain on behalf of its farmer-members.
Kiwifruit or kiwi is a major horticultural export earner for New Zealand. New Zealand developed the first commercially viable kiwifruit and developed export markets, creating the demand for the fruit that exists today. Today New Zealand is the third largest kiwifruit producing country, next to China and Italy, and holds approximately 30% of the market share. In the 2008-2009 season the value of New Zealand kiwifruit exports was NZ$1.45 billion.
The AWB oil-for-wheat scandal refers to the payment of kickbacks to the regime of Saddam Hussein in contravention of the United Nations Oil-for-Food Humanitarian Program. AWB Limited is a major grain marketing organisation based in Australia. For much of the 20th and early 21st century, it was an Australian Government entity operating a single desk regime over Australian wheat, meaning it alone could export Australian wheat, which it paid a single price for. In the mid-2000s, it was found to have been, through middlemen, paying kickbacks to the regime of Saddam Hussein, in exchange for lucrative wheat contracts. This was in direct contradiction of United Nations Sanctions, and of Australian law.
Richard Strankman is a Canadian politician who is an elected member to the Legislative Assembly of Alberta representing the electoral district of Drumheller-Stettler.
The Wheat Industry of Australia has been organised by government regulation, by both the Commonwealth Government and state governments.
The Department of Commerce and Agriculture was an Australian government department that existed between December 1942 and January 1956.
The Saskatchewan Co-operative Elevator Company (SCEC) was a farmer-owned enterprise that provided grain storage and handling services to farmers in Saskatchewan, Canada between 1911 and 1926, when its assets were purchased by the Saskatchewan Wheat Pool.