Revised marketing system.

[Steve]

I read the June thread: Vanclief’s Fantasyland 1&2 and found long but very interesting.

I also came to the conclusion that no problems were solved but a lot of ideas were kicked around and the same problems still exist. We ALL have the same problems that no one wants to change and accept the good ideas that we presented.

It is amazing how we ask the same questions over and over again and never seem to get the right answers. The biggest reason is that we already know the answer and want it confirmed, and if someone disagrees we accuse him for not answering or not understanding it in the first place.

I think this is learned at home from our wives “ I know I told you last month but you never listen.”

Comments

[ianben]

I agree we mostly talk in circles but at least we are talking and all see there some is room for change or improvement.

I attended a meeting today in Chester,you can find what they told us at www. agriknowledge.co.uk. Their message was "know your own costs" and "be prepared to change but do not change for changes sake."

Poorly attended though. There is a lot of apathy over here as incomes bounce along the bottom.

I personnally very much enjoy our conversations.We might not have changed anything but I have learnt that the grass might not be any greener over there. In fact I am amazed how similar our farming problems are.

We start turkey plucking tomorrow, 400 by hand, so I will take the opportunity to wish you all a happy christmas and a more prosperous WET new year while my fingers are not sore.

Thank-you agri-ville and seasons greetings

Regards Ian

[ianben]

Forgot to mention straw.

Very very expensive over here too.
Barley straw £120/tonne
Barley £66/tonne

Nearly twice the price of grain!!!

Still trying to maintain our prices and yes being accused of selling too cheap.

Regards Ian

[TOM4CWB]

Ian,

I wonder if we should be breeding new varieties for higher straw production, This "byproduct" may infact become the most profitable part of grain production for those close to consumers of straw.

thalpenny,

As I have said earlier, I pool most of my non-board sales of grain, however this is a voluntary pool with willing participants.

If the CWB were to offer an exemption like Ontario does, the pressure would disappear instantly!

What is the CWB so worried about?

It is clear the CWB has an unbelievable advantage over all other players in the Canadian wheat and barley marketing system, and for instance if "a Canadian grade name" could not be used in exempted producer export sales, the CWB would not be at risk to any significant extent on market share loss, on large volume sales, if they were at all efficient.

Change is assured, isn't it in the CWB's best interest to lead change in a courageous manner rather than being always viewed as the problem, why not be part of the solution?

[Steve]

This thread has slowed down so I better put in my two cents worth to keep it going.

I think one reason the grain prices on the commodity markets change so rapidly because there are too many experts analyzing their research on weather, supply, demand and recent sales to other countries.

These experts voice their option and they really don’t know where the market is going because they get paid to give a daily report.

The speculators like these signals because they don’t care if the market goes up or down as long as they make money. If you play the futures markets there is money to be made on someones misfortune.

In a way I do respect the speculator because he puts his money down and has to risk loss or gain, but the expert analyzers or advisors never practice what they preach.

To be fair to the expert advisers they don’t hold a gun to your head to take their recommendations and also try to feed their families by working in the marketing chain.

Lets take a positive look at today’s commodity marketing. The farmer still holds the upper hand because if we use the system I suggested, you don’t have to sell if the buyer doesn’t meet your asking price or you to take his offer.

Now I will open a can of worms on the dreaded CWB.

I would like to start with the positive side of the CWB first and maybe the negative will shrink, but I am sure it wouldn’t for all.

The CWB works with a large variety of farmers that produce wheat and malting barley for the export market. The board is a nonprofit origination and all it’s members take part in the major decisions.

Mother nature forces extreme weather conditions on us worldwide to try and make us work together and share our food.

The CWB by pooling wheat or malting barley is trying to help the unfortunate and maybe the inefficient farmer to feed their families, also assure their customers a good supply of grain, as they too want to keep the food chain going.

The CWB has a hard job to try and satisfy both the producer and the buyer in this competitive market. Some of the farmers are using hindsight and suggesting we should have gotten a better price for our wheat.

May I ask the same people did you sell all your canola, feed barley and peas at the top price for the year? I also know your answer no I didn’t but had a chance to try.

I think we should better see the trees before analyzing the forest. [ this expression was used by Pandiana on another thread ] What this is saying lets work together because the food chain is very long and unpredictable, therefore one has to give and take a little.

The CWB did change over the years to the better and will keep changing or may be illuminated some day. Sure would make Tom4cb happy.

The good changes were that feed barley, oats and feed wheat were taken off the board because we have a good domestic market. Canola and peas I believe where never on the CWB. The board is not trying to take that freedom back.

I still believe that wheat is easy to grow and hard to market.

The contract replacing the quota system is better for the CWB because they know how much wheat they can sell. I know some farmers don’t like it because they have to commit their wheat or malting barley, but how can the CWB sign a contract to supply a customer if they have nothing in the store. I like the idea that you only have to deliver 85% of the contract and can change the grade.

Now the new CWB contracting on price and bases contracts I don’t fully understand because I never used my self. The way I see it when you buy a bases contract you are also putting un-priced wheat on the market therefore the CWB or it could be any other grain company has to cover their handling cost on the market price side.

Also the big deal about canceling the bases contract the rule goes never sign one if you don’t understand or mean it and that rectifies the problem.

I think that the CWB should issue export permits to grain producers and grain companies with no buyback because this is the same reason the board is there, to sell what the farmers are producing. The CWB is a nonprofit organization so they really don’t have to make money and time will tell if it is needed.

Also open up the domestic wheat market and get value added started and will also prove if we can export these products.

This will also prove if we have a good free agreement with the USA.

Now if this all doesn’t work the farmers can lobby the Government for subsidies like the rest of the world to insure cheap food.

Comments

[TOM4CWB]

thalpenny,

Your comment;
"And in some individual cases, the total return may not exceed that farmer's total cost of production. But if a cost of production figure was to be the baseline, whose cost of production would you use? a farmer from Killam, Kindersely or Killarney?"

This comment is the box the CWB "monopoly" puts us in.

Since the CWB Act doesn't say the word "monopoly" once, it is the box you have put yourselves in.

Marketing choice allows higher cost producers the opportunity to search out higher return markets, in a reasonable time period for cash flow needs, and gives the freedom to sell at the higher price that is needed to make the operation profitable.

Lowering us to the least common denominator stops innovation, reduces productivity, and frustrates early innovators. These managers many times then just move along to another business where they are allowed to take risks and inovate, to the detriment of your products!

Please understand that we do not spend all this time on this subject to have it wasted and forgotten.

I need a prosperous wheat and barley industry to allow my children the opportunity to farm in the future.

Now isn't it in the CWB's best interest to facilitate the creation of this new prosperous wheat and barley marketing production system, rather than the promoters of a vision of less production and therefore profitability in our industry?

[TOM4CWB]

Steve and Tom4cwb; I like both of your last comments. The CWB should pay attention for if they dodn't apply to theses ways of doing things they may not be doing anything at all. I see a great opperunity here for both the CWB and the producer to better themselves and create more profitability and employment for everyone in Canada by diversifing the value added side of our agricultural industry. Freedom to market will cause freedom for domestic processing.