CWB Final “Cashplus Offer” has Canadian Malting Industry asking “Where’s the Rest of it?”

[mcfarms]

"The Canadian Wheat Board says critics need to examine the facts before attacking the CashPlus program.
Malting companies and groups like the Western Barley Growers Association are say they expected the final CashPlus barley payment to be at least double the $12.89 per tonne announced by the CWB.

Wheat board senior manager of barley marketing Bob Cuthbert says the avergae difference between the initial payment and the actual board sales was $19.15.

The final payment was that number minus $6.26 in costs for administration, storage and offsetting risk management.

Cuthbert says the average spread in the contracts signed by the malting companies was well below what the maltsters are saying the final payment should be.

Cuthbert acknowledges there was a wide range as earlier sales were close to $400 dollars per tonne while sales at the end of the year were closer to $200 dollars.

He notes it's possible the malting companies have based their expectations on the higher "



First off I like Bob Cuthbert have always found him to be decent and forthright and enjoyed sitting around a table with him in a fromer role I had. That said if I read this right it means that I am correct in my assumption that the board did in fact pool all the hold backs and distribute them evenly amongst all participants. So those that signed cash plus contracts at 400 then contributed 28 dollars a tonne to this pool whilst those that singned at 200 a tonne then contributed 14 dollars a tonne to this pool. Should the hold back be associated with your contract and the 400 a tonne guys be getting 21.50 and the 200 a tonne guys getting 7.50 seeems to be the largest issue here. I sold when I sold should I be getting the benefit or the penalty of when I sold or is this "pooling" acceptable within the cash plus? Thats a question that needs to be addressed in this program going forward.

[charliep]

Perhaps where cashplus can be faulted is the mechanics of the process from the time of a brewer/malster discussing price to the contracting process between the CWB/malster and finally the actual price signal to the farmer. A cumbersome and confusing process.

Other issues will be sorted away in the annual (or at least I hope). A CWB mistake in my mind is depositing the cashplus in the overall contingency fund versus treating separately in its own account. The accounting for activities could have been handled in the same envelope the cheque/payment documentation was sent in. Due diligence needs to be better in the current world if nothing else from an optics standpoint.

Still confused why the malt barley cashplus paid interest from the CWB versus having a part of the contract/being paid directly by the maltster/exporter.