The Canadian wheat Board is a single-desk state trading agency responsible for the marketing of all barley sold for human domestic consumption and for export. The U.S is the biggest importer of Canadian six-row malting barley. This study aims to analyze the welfare effects of State Trading Enterprises (STEs) as it applies to the US-Canada malting barley trade. A policy simulation was developed to determine the redistributive efficiency of single STE, a competitive structure, and a structure with oligopolistic processors.