There is more to value adding than having lots of raw product. Transportation costs play a huge role in whether raw products like oats or wheat are processed locally or closer to big population centers.
On a per head basis we mill more flour and make more malt barley in the west than happens in the western United States. We have one of the largest malt plants in the world at Alix, Alberta, for example.
As with everything else bigger is usually more profitable, however when it comes to value adding, there is more to the world than economies of scale.
The bottom line is the CWB allows farmers to serve premium markets both locally and around the world. Those who claim the CWB should act as a social welfare agency for value added processors are really saying grain farmers should take less for their grain so others can profit.
Read more about the details of Value-Adding Details.
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