36 — THE CITIZEN, Prince George — Friday. November 14. 1980 'UNFAIR' EEC BLAMED Canada's flour industry slumps Emphysema, Asthma, Tuberculosis, Chronic Bronchitis, Air Pollution Use Christmas Seals It’s a matter of life and breath WINNIPEG (CP) Canada, once a leading exporter of wheat flour, has been reduced to crumbs in the world market. Five flour mills that depended on export sales for their survival have been starved out in the last seven years. The latest victim: a Maple Leaf Mills Ltd. plant in St. Boniface. Its end. effective Feb. 13, will be witnessed by more tfjan 100 employees. Workers in some of the 40 remaining mills across the country might also face a bleak future if market conditions continue. In 1954, Canada supplied more than 30 per cent of the four million tonnes of flour traded throughout the world. By 1979, despite an increase In world trade to 6.3 million tonnes, Canada’s share had slipped to about 10 per cent. A report by the Canadian wheat board in its newsletter, Grain Matters, had a number of explanations. First, there has been a tremendous expansion of milling in developing countries as they move towards industrial development and self-sufficiency. But of more concern to the wheat board is what it calls unfair competition from the European Economic Community (EEC). EEC flour exports are heavily subsidized, and what rankles Canada and other countries is that much of the money is earned from grain imported by EEC countries. For example, the EEC protects high domestic prices by charging import levies. The money then is used to defray the cost of subsidies on exports. EEC countries — France, West Germany, Italy, Luxemburg, Belgium, Netherlands, Denmark, United King- dom and Ireland — supplied 52 per cent of the world flour market in 1979. Those countries held only 15 per cent of the trade 25 years ago. The wheat board gave this example of the competitive edge export subsidies give EEC millers: In April, 1979, tenders were called on four to eight cargoes of flour to Sri Lanka. As in other tenders of that type, the wheat board attempted to assist Canadian millers by offering them a competitive grain price and threeyear credit terms to the potential buyer. But despite the favorable terms a firm from Holland was able to offer the flour at more than $35 a tonne below the Canadians. In the 1950’s. Canada consistently exported more than one million tonnes of flour each year. Exports now total from 650,000 to 750,000 tonnes and 65 per cent goes to Cuba. The rest is used mainly as food aid. But despite the gloomy picture for the Canadian milling industry, the world demand for wheat continues to increase. Whether Canada will be there to reap the benefits is another question. Fight Diabetes, before it fights you. r Give now Canadian Diabetic Association ff-^n!jEucAs i WOODS I. 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