U.S. likely to re-open border to beef: Cellucci

[pandiana]

Having just got that onto paper, however, I realize that the reduced value of the US$ would give them the advantage we have enjoyed in the export market; giving them a leg up in competing for the same markets we are.

[kato]

Very true. Oh what a tangled web! I'm sure we can deal with it, we've dealt with everything else so far.

Still, it is like having a diversified portfolio, as the rich folk say. The farther abroad the markets are spread, the 'average' will help with stability.

If the American dollar promoted their exports, and they do export a lot, their exports would improve their economy and raise their dollar. Then their dollar goes up and their value of exports goes down. And on and on.....

That's what has happened to us. We're just farther along in the cycle than they are.

[Ration-Al]

Tom,

You seem to be missing the point again. Ward Wiesensal said

"we utilize the WCE's contracts for risk management of our producer pricing options. "

You said

"So why can't the CWB provide competitive hedges on feed wheat and barley for us... "

You can purchase hedges for whatever purpose you like. The CWB does not provide hedges for anybody but their own risk management. It sounds like you expect the CWB to use some sort of volume purchasing power or insider knowledge to get you a better deal on your hedges. It doesn't work like that. The purchasing of hedges by the CWB is a very straight forward process driven by the volume of PPO contracts and the daily pricing on the commodity exchanges.

[Incognito]

I am not going to get into the match above...

Of all the barley that is priced/sold/hedged by the CWB, how much is offset at the WCE? The MSC will be the only ones that can answer that to see if the letter from Ward holds any weight.

In an another life, the excuse I heard day in, day out that the CWB would be too transparent in the pit at the WCE.

What's changed?

[cakadu]

The critical component to what you are saying is to find NEW markets and then ship the beef that we have processed here to those new markets.

Capturing the value here and spreading it amongst the players in the chain is what is important. Information has to be exchanged all the way along so that everyone will benefit, the producer included.

[TOM4CWB]

RationAL;

I will be a fruit judge... this is my job.

Provide premium farmgate prices... and show us the money we can put in our bank accounts.

This is the standard the CWB MUST live by if I am involved in manageing sales.

Excuses don't cut it with the customers who buy my products and services.

Why exactly should the CWB expect any different treatment?

[ValueChainFX]

Rusty give us an update as to what is happening in the south with your plant?

[Ration-Al]

Tom

Premium prices. Tell me what price you are getting for your wheat today. What price would you want to get? By how much would you say the CWB is missing the mark? Is it pennies, nickels, dimes or dollars? Are you suggesting that the CWB is leaving money on the table or do they just sell too much wheat? Are there customers that should be paying more? Or are there customers that we just shouldn't be selling to?

Then tell me how you would do it better? Would you pick an arbitrary price level and not sell below that? How much crop are you prepared to leave unsold in farmers bins? How much market share are you prepared to lose for Canada?

[chaffmeister]

I think what Tom is talking about is best illustrated with an example - let's use Oct 29 prices for Rycroft, AB:

CWB Fd Bly FPC = $108.20/t
NET TO FARMER after deductions = abt $68.70/t

CWB Fed Bly PRO = $112.00
NET TO FARMER after deductions = abt $72.50/t

non-CWB feed barley = abt $74.37/t

1. CWB prices from CWB website
2. Deductions were my guess (used the low end of the range)
3. Non-CWB price from Alberta Grain Commission website.
4. Chose Rycroft because the CWB says this is an area where the comparison makes sense (see latest Grain Matters)

Ration-Al - based on the above, how is the CWB is getting and providing value? If these were prices from just another grain company, it would tell me either the company wasn't interested in the business or wasn't very good at it.

[bombay_43]

We attended a Rancher Own meeting last week. This is the farmer owned packing plant which is being built by Edmonton. This is the co-op which is asking farmers for $5000.00 for a share, as well as 15 culls per year at market prices.


Ranchers Own has now combined forces with Rancher Meats in order to get this plant off the ground.

They are hoping to have the plant up and running by November of next year. Still a long way off, but at least they are still working on it.

An interesting statement made by the fellow conducting the meeting, was: If I had my way, I would not let another animal walk across the border!

Every time we allow a "live" animal into the US, we are allowing them to take jobs away from Canadians. Slaughtering, processing, value added items such as pharmecuticals and leather.

Ranchers Own has already found markets for the hides! I am very optimistic about this venture. Any one else have thoughts on this one?