CWB got a sale to Saudi Arabia

[Choice2U]

Rockpile, your words in small capitals, mine in large caps "Let us assume for the moment that this sale is of huge benefit to farmers in the designated area (I WILL NEVER RISK MY FARM ON ASSUMPTIONS ABOUT OTHERS ABILITIES), why then try to denigrate it? (I WILL NEVER KNOW THE PARTICULARS OF THIS SPECIFIC SALE, GOOD OR BAD SO I WILL CONTINUE TO DENIGRATE SOMETHING THAT ALWAYS DISAPPOINTS ME) Are you not shooting yourselves in your own foot (NO, I AM WONDERING IF THE CWB IS SHOOTING ME IN MY FOOT)? What is the advantage to you on your own farm to criticise the CWB for something that may actually turn out to be a personal benefit for you? (AGAIN, I WILL NOT RISK MY FARM ON AN ANNOUNCEMENT BASED ON YOUR WORDS "MAY ACTUALLY TURN OUT") Where do you separate ideology from sound business practices? (SOUND BUSINESS PRACTICES ARE BASED ON TRUSTING AN ENTITY THAT I CAN EVALUATE AND VOLUNTARILY CHOOSE TO DO BUSINESS WITH NOT ONE THAT I AM FORCED TO WORK WITH AND THAT GETS MY BUSINESS REGARDLESS OF PERFORMANCE) I can tell you that in the energy industry and in insurance/finance Board rooms - these kinds of discussions never come up. So why not be a bit kind and give some bouquets to the CWB if and when they actually do something that might be of value? (SHOW ME THE MONEY AND I WILL GIVE KUDO'S)

[Raven]

Interesting debate. First I will give my opinion. The Conservative Government has always been commited to a strong vibrent CWB. (but voluntary). However, they seem to be softening. Harper's statement that he hoped the WTO would end the monopoly has now changed, and the government's new position is that the future of the CWB should be decided in Canada. And I'll bet that means prairie farmers.

As for the political future, I agree with Rockpile that it is unpredictable. However, even with a Conservative majority, expect that change won't happen without a vote by producers and I believe the Act requires the consent of the CWB Directors. That being the case, it may take years to elect directors(with resolve) who will support a vote. As for a vote, I don't accept that my fellow farmers have a right to decide how I market my own grain.

I know of two people who asked their grain farming neigbors how much they got for their wheat last year, and none of them knew. To me, this indicates that arguing about prices is next to futile. In my opinion, the important thing monopoly supporters like about the CWB is that it gives them a little bit of control over their neighbors. How do you convince someone with that attitude to give it up? Even jailing farmers didn't work.

Now for facts. Part IV of the CWB Act is national and requires all exporters from Canada to have an export licence with no exceptions. All producers outside the designated area are granted licences but (with some exceptions) producers in the designated area are denied licences. Its that simple.

Even a minority government can make regulations as long as they comply with the Act. The national Part IV says the Government can make regulations regarding export licences. If the government orders the CWB to grant licences to producers in the designated area, (just as they do in the East) the CWB and the system remains intact but immediately producers are no longer captive suppliers for the CWB.

The granting of export licences is all that eastern farmers have ever had. Why do we waste our time insulting and complaining about the CWB instead of asking our CWB Minister for export licences?

[rockpile]

Raven, you nailed it dead on and have every fact down straight. Choice 2U, you missed the whole damn point.
Rockpile

[wd9]

Raven and Rock, dead on. The challenge on this site is getting solutions. There was a value added topic and guess what, not a single solution to low farm income - to any crop and not just board grains.

There is a lot of whining but few solutions, and yes the CWB will be here for a very long time so what do we do in the mean time?

[JDGreen]

Im not disagreeing with anyone here.. But if the decision is based on farmer vote, then isn't the solution simple... Why not actually let farmers vote. Not my neighbor who died 43 years ago but still received a vote in the last election. And most certainly not my 77 yo landlord who retains a permit book and breaks all the tax rules ever written to maintain that he is something of a farmer.. And how about my 92 yo grandfather who hasnt made a farm based decision in 20 years. These 3 examples show why there is a wheatboard. The issue is not that I dont believe in a democratric solution, but rather that i do not accept a corrupt voting system.. The solution is simple .. Have the voters list audited by a 3rd party using strict guidelines.. The CWB is then done end of story in the following election.. JMO

[furrowtickler]

JD - you nailed it, the whole system is a sham right from the vote.

[dmlfarmer]

If the CWB was gone, who would have made this sale of 20 million bushels of western Canadian wheat to the Saudis? Which of you, who are demanding the end of the CWB, have the volume and ability to have made this sale?

...and before you answer the private trade would have, why would Cargill or Louis Dryfus, or even Viterra limit sourcing of grain for this sale to western Canada instead of sourcing the sale from the cheapest farm seller or where their costs of movement of the grain is lowest?

Oh, and please provide me with an estimate of what the costs the private trade would have incurred had they made this sale and what their profit would have been. Since you demand this info on CWB sales, you must be getting this information on private non board sales of commodities already that could give you an estimate, right?

[furrowtickler]

dml, time will tell on the pro's what this sale was worth. The volume was there but that is insigificant as to the value of the sale. I am sure you could pick up the phone and offer the Japanese 20 mill bus at $350/tn and make the sale instantly.

[tipsy]

When I read the release I see the words "won a tender".When you put out a tender to purchase grain I don't think you are going to accept the highest tender.When I see a cwb press release that states we won a tender,so,yes they sold some grain,but Iam puzzled by what the cwb thinks western farmes have "won" by the lowest price.

[charliep]

Has anyone actually seen a price on this tender? Price usually come out somewhere from the trade. If a CIF value (delivered Saudi port), would be interesting to do all the deductions to come up with a local elevator price equivalent.

Would also be interesting to find out if the CWB did the business direct or through an accredited exporter.