Hello jeff nielsen

[Jeff Nielsen]

C to C alumni this year was pretty general, talks on, naturally WTO and why we need to stand up for the CWB, branding, weather farm, CWB supply chain, Ward's market outlook, who is Ron Davidson and what he does for the CWB in Ottawa.
Special guest speaker from Ecuador who's flour mill buys Canadian wheat. He was a good speaker and a true highlight. As to the rest, yes during the break out sessions there were many questions, comments and concerns over pricing options, durum, failure of barley marketing and so on.
Many asked why there wasn't sessions solely on PPO's. Perhaps in the future there will be.
As to administration costs? I believe they are slightly higher than last year with the majority of that relaying back to our conversion to a new IT system that has been ongoing the past couple of years. That will be found in our annual report out shortly.
Jeff

[charliep]

Jeff can speak for himself but the issues you raise outside the suggestion itself is governance and the role of the Board of Directors versus CWB operations. My assumption is the B of D would highlight the requirement to make a closer tie between CWB producer payment options and delivery access through their strategic planning process. The operations side of the CWB would make it happen and be judged on results.

Just to be clear, I am not putting Jeff on the spot. Just curious if anyone occuppied a seat at this year's C to C and from there, topic areas/discussion.

[bucket]

The reason I called the directors is because if i call the 800 number they don't have a tendancy to put me through to operations. They write my suggestion down and say they will put it forward. My calls and comments have to date gone nowhere.

But, maybe, I would think a board memeber would act on a reasonable idea or put it through to the operational staff so it would be thought about. Durum doesn't have alot of time to correct itself. And coming out with a super low PRO is not the answer to the problem as it may cause quality control issues.

thanks again for the update Jeff.

By the way is ecudor one of those countries that get financing through the cwb?

[Jeff Nielsen]

thanks Bucket, good points and questions that have been asked and been around for some time. Durum no doubt we made a BIG error last spring with the PRO, yet it reflected the world price at the time, should we have had more sold? carried a lot less into the new crop year? that I'd agree to no problem. How we could have achieved that goal better well that I think we do have to solve, especially going forward. It is discussed at the board table, and it is one problem that needs better answers ans solutions to allow producers to see decent returns from there durum. Going into 2010-11 is going to be a challenge for sure, and one that feed back from producers on what really they want is needed.
As to Ecuator, not sure how the sales is financed.

[bucket]

Hate to carry this on too long.

But as a durum producer I expect the cwb to come out fairly quickly and say if western canadian farmers grow 4-5 millions tonnes of durum we can only sell 50% or less of it because the carryover will be huge.

Like I said earlier give producers the acceptance of the contract now and a reasonable price for the 2010-2011 year so they adjust their seeding plans accordingly. There is no sense in coming out with a PRO that is not reflective of anything and is NOT a guarantee of final returns.

If the cwb only needs 2mmt of durum for the 2010-2011 marketing year get the contracts out there like grainflo. Fill them in 1/2 hour and get on with the 2010/11 marketing year. Start telling your buyer that canada is not going to store durum for them. I am quite sure at the current prices the buyer could build bins. I get told that every stinking time I want to buy fertilizer. Hell it is so cheap you can afford to buy bins.

These ideas to solve the durum problem are ones that forward thinking. If I know that the cwb is going to accept 500 tonnes of my durum for the 10/11 crop year I can adjust accordingly either by leaving what is in the bin for next year and not growing any or just reduce acres. If I grow more than that I have no problem with storing it - I know the consequences before I start.

But if I grow a crop based on the PROs coming out february and the cwb doesn't make an effort to sell my crop then I will be a bit annoyed and rightly so.

You have to remember that the current call on durum means that the cwb has only moved 15% of the 09/10 crop and we are halfway through the marketing year. Couple this with no guarantee on B series movement puts durum producers in a bit of a pickle and grain companies know this. May explain why peas are at less than 6 bucks right now.

Bottom line:

Sticking your heads in the sand at the board table doesn't make the problem go away and does not instill confidence.

The board should, if operations won't, make it a priority to solve the durum issues prior to the 2010 crop year. To me, it seems quite achievable. It would make farmers more money. But quite frankly, the current system for durum is not working. And, if the cwb refuses to make changes quickly, it should not be hard to support asking the government to get the cwb out of durum. I know that admitting failure is better than continuing to fail.

[caseman]

I will second that!!!

[Jeff Nielsen]

don't want to continue it either bucket, I know your views and fully understand them, having a pro monopoly controlled board who's sole mission is to maintain that monopoly at any cost is what is the root of the problem.
Those of us who can see a better future where things are different can only try our best to show that we need a better system in place to ensure we continue to provide our customers our best.
As a board management marketing plan is appoved by the board, is it a complete consensus? no, yet majority rules. We then work to ensure that the CEO follows through on these marketing plans.
Jeff

[bucket]

Fair comments.

Let me ask you the following questions:

What happens to the ceo when the durum PRO comes out in february 2009 at a premium to wheat with no indication that acceptance levels would be horrible and the price falls through the floor by the time farmers have one of the best quality crops in the bin?

Does he get a big fat raise - more than likely.

Do you, as a board, question him as to what went wrong and tell him to make changes for the upcoming year?

Or do you allow him to continue on his merry way with a completely ****ed up marketing approach and leave farmers holding the bag?

It seems to me that we are in a bit of crisis in the durum market and farmers are left losing money while our high priced marketing agents can't even think of a better way and a board that allows them to do nothing.

Do I think some heads should roll for the durum - you bet, but nothing will happen and there in lies the problem.

Here is another question :

If the same thing happens again in 2010/11 who would be to blame if the durum production comes in at 4.5 mmt?

Does the cwb continue to blame farmers for following the PROs?

Does Ward W/ sir ian get fired for not coming up with a better plan for the 2010/11 year.

Or does the cwb board collectively make more excuses as to why the durum market is where it is?Or do they finally look in the mirror and say maybe we are part of the problem for doing nothing?

The cwb board is to show leadership and making tough decisions and sometimes shake things up. You can't expect a different result with the same practices.

If you don't see operations making the required changes then fire their lazy asses.

And tell them to remember that farmers are not employees of the cwb - its the other way around.

It seems to me that the board should round up management and maybe give them a collective boot in the ass and tell them to wake up. Obviously the motivation is not there to do their job effectively.

[silverback]

Jeff,

Can you please explain the extent of the muzzle the free choice members of the board are under.

It is puzzling to some as to how quiet board members get once they are elected.

Perhaps ideas change with an off farm job?

[bucket]

Jeff

A couple of posts up you said the cwb made and error on the durum PRO last year but it reflected the world price at the time.

Question: Why were farmers not allowed to at least lock in some of their production at that so called world price? Maybe that is an issue that should be addressed as well. American farmers were locking in those higher prices which may explain the US production jump.