Barley Top Up Payment

[TOM4CWB]

Charlie,

It should be perfectly clear now... who the CWB monopoly works for. LIVESTOCK consumers, Millers, Malties, and the Eastern Establishment.

We must pool. Cash prices are evil.

[charliep]

Off the wall questions.

Can Guraranteed Delivery Contracts work without some type of price
signal involved (even if a muted and suspect one)?

Would the feed barley model (GDC and price via grain companies) work
for winter, prairie spring, soft white and extra strong wheats? Is this
the way the CWB will be going with changes in the future highlighting
that GDC will be the only way to contract/deliver some of these wheats?

[charliep]

Got an email from someone who asked why there aren't more questions on this issue.

From a newsletter I get.

Japan bought 2 large parcels from Canada on tenders past month for Sept/Oct last trading around USD $255-260 FOB. MY COMMENTS - WORKS BACK TO $4.50/BU ALBERTA.

CWB will continue to pursue export interests as long as they can source from domestic market. They have a built-in margin by keeping the lid on domestic market levels. MY COMMENTS - LESS LIKELY TO MAKE THEIR MALT BARLEY PRO/CASHPLUS LOOK BAD OR HAVE FARMERS WALK ON CONTRACTS.

[charliep]

More numbers.

Grain companies apparently did the business at about Cdn $210 to $215/tonne Instore west coast (likely Prince Rupert). Full cost rail, elevation etc back to Alberta elevator - $50 to $55 ish (full cost recovery/no risk). A further $15 at port for fobbing (handling/loading ship). Sale price loaded vessel $255 to $260 (not sure in previous quote whether Cdn or USD $). That leaves $25 to $30/tonne CWB margin to 1) cover bad says over the year, 2) paid back to producers who participated in the program, 3) paid into the pooling accounts as an administration fee or 4) transferred to the contingency fund.

[charliep]

Mistake alert

That leaves $25 to $30/tonne CWB margin to 1) cover bad SALES over the year,