Winnipeg, Manitoba, Canada
October 15, 2009

The Canadian Wheat Board (CWB) has opened its first laboratory for testing and grading Prairie grain, a move expected to save farmers money while improving quality control and customer service. The lab, located in Innovation Place at the University of Saskatchewan, adds to the CWB's ability to meet its grading and testing needs, especially before grain reaches ports or North American destinations.

"An increasing customer focus on specific quality factors and food safety is one reason that opening this lab make sense for farmers," said Michael Lackmanec, the CWB's director of marketing strategy. "As customer demand for quality and food safety assurances increases, the number of tests required for the CWB to market Prairie farmers' grain is also growing."

Farmers, through the CWB, currently spend more than $500,000 a year on third-party grain testing for marketing purposes. In the first 18 months of operation, the lab is expected to save over 10 per cent of that cost, or between $50,000 and $100,000. Savings will grow as the volume of testing required by grain customers increases. No change in Canadian Grain Commission (CGC) services is expected, as the CGC will continue to conduct official inspections and guarantees of grain grade and quality.

The initial capital outlay for the CWB lab was about $150,000. Saskatoon was chosen because of its central location in the Prairie grain-growing region.

CWB lab staff are now preparing hundreds of composite samples of grain from this year's Prairie harvest, which are being sent to existing and prospective customers all around the world. The lab has three full-time employees, who grade wheat and barley and test it for protein, baking attributes and other factors that affect grain quality.

"When harvest is finished, the CWB moves into an intense period of showcasing western Canadian grain to the world," Lackmanec said. "Because the CWB is both the marketer and seller of the grain, we can directly tie our marketing strategy to grain sales, which is a unique and significant advantage for Prairie farmers in a competitive world marketplace."
CWB marketing strategy, designed to develop and enhance sales opportunities for Prairie grain, includes:

• Overseas missions to profile new-crop quality to grain buyers, millers, bakers, maltsters, brewers and pasta manufacturers around the world. This crop year, the CWB plans to visit at least 25 countries to showcase Prairie wheat and barley.
• Welcoming international customers to Western Canada for a first-hand look at Prairie grain and the Canadian grain handling and marketing system. Each year, about 400 grain-industry representatives from 30 different countries visit the CWB, the Canadian International Grains Institute (CIGI) and the Canadian Malting Barley Technical Centre (CMBTC) in Winnipeg. They participate in technical sessions focused on the quality and performance of grain. They also visit farms, ports and grain elevators.
• Technical missions to assist and educate customers in the best use of Prairie grain in their milling, baking, malting, brewing and food manufacturing processes. The CWB's ability to follow-up sales with professional technical support, in cooperation with CIGI and CMBTC, is a valuable selling point for western Canadian grain.

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 over 70 countries and returns all sales revenue, less marketing costs, to farmers.

Website: http://www.cwb.ca

Published: October 15, 2009