Marketing mix railways

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Marketing mix railways

History[ edit ] First wheat boards[ edit ] By the early 20th century in Western Canadagrain purchasing, transportation and marketing were dominated by large companies headquartered outside the region, such as the Canadian Pacific Railway and the trading companies which dominated the Winnipeg Grain Exchange.

Producers were deeply suspicious of the business practices of these companies and hostile to their positions of power. Farmers were impressed by the success of state-led marketing as it was practised during World War I. The government created a series of boards in and around the war, each with progressively more power to control the grain trade.

The Board of Grain Commissioners of was purely for regulation to supervise grading, etc. Inthe new Board of Grain Supervisors was given monopoly powers over wheat, and fixed uniform prices across the country.

Soon afterwards, the Board took over marketing of other crops as well. Farmers were worried that after the war, prices would crash and various agrarian groups lobbied Ottawa to keep the Board in place.

The government relented by creating the Canadian Wheat Board for the crop only. Farmers got a guaranteed price for that crop, paid immediately, and later a further payment once the Board had completed the year's sales.

This system of guaranteed prices and distributed income was extremely popular and when the Board dissolved inmany farmers were livid.

Marketing mix railways

Cooperative grain elevator operators already existed, like United Grain Growerswhich had already been started in In and the wheat pools were created to buy Canadian wheat and resell it overseas. However they did not hedge against falling prices instead relying on provincial government guaranteesand during the price collapse ofthey effectively went bankrupt.

The majority of farmers did not want the private traders to return, and now it also seemed impossible for them to own their own marketing companies, so the idea of a government marketing board was revived. Revival and flourishing — [ edit ] The Canadian Wheat Board was re-created in with the aim of controlling grain prices, so as to benefit farmers devastated by the Great Depression.

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During the Second World Warthe authority of the Board was expanded, and the Board was given the authority to set statutory maximums on wheat, oatsbarley, flaxand corn between December, until expiry after the war.

Membership was made compulsory for Western Canadian farmers in via the War Measures Actnow with the purpose of aiding the war effort.

Marketing mix railways

In April, the Board was also authorized to buy rapeseed and sunflowers. McNamara convinced Parliament to end the time limit in the Act, thereby creating a permanent Board. CWB control over interprovincial shipments of feed grains became a public issue during the grains crisis in to and was removed.

Only non-feed wheat and barley remained controlled by the CWB.Marketing Mix. Although there have been other modes of transport available in the country.

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