This paper develops a conceptual and empirical model to examine price discrimination in Canadian bread wheat exports. The industrial organization and trade literature have primarily focused on consumer goods. However, the nature of intermediate goods is such that the current New Empirical Industrial Organization (NEIO) approaches and trade models are not readily applicable. This study modifies the model of quality differentiation developed by Mussa and Rosen (1978) to the realities of bread wheat import demand. The outline of an empirical model designed to test and isolate the bases of price discrimination under quality differentiation is also presented.