The issue is that the line companies are shipping dirty lentils, which gives lots of ammo for countries to stop shipments to drop markets. Some of the lentils went into turkey with 10 % FM and splits last year. Explain to me how you average 10% FM out of Canada on red lentils?
Same problem as Hessian Fly into Korea. They stopped shipments of feed peas into Korea because they contained Hessian Fly. Why was a insect that laid eggs in wheat straw found in Pea shipments? BEcuase they add in dockage at the coast to max the allowed foreign material level. Same thing is happening with lentils. Do large grain companies care? No, they will just switch to a different commodity if there is a ban, and shit runs downhill.
Peas into China-complaints about splits and quality. Does the line co care? Not really, it is all about thru put. Peas are traded for 10 dollars per MT in China. That is the margin, plus margin to load the boat of similar dollar amounts. Complete bastardization of the product.
Line compnanies have large lines of credit becuase the CWB backstops the cash flow. You pay for that immediate payment twice as they pay less for the lentils and it is subsidized from your CWB grains. Generally Viterra is 2 cents below the rest of the trade, becuase they can, becuase farmers will let them be. Why-becuase they owe them for inputs and farm the farmer. It is their inhouse language for tieing the grower with seed and purchasing.
Additionally, there are only a few buyers in the world that can buy boat loads of red lentils, and that is the only place they can really be competitive. Ocean freight is 50 dollars per MT cheaper then container frt and they pay the grower 1-2 cents/lb less, so they will be in it until ocean frt and container frt comes together then off to the next crop. There has already been risk in Turkey, to the red market in Canada, because GMO's (canola) was found in red lentil shipments that went into Turkey last fall. This was resolved, but is a tool coutnries can use to whack the markets down. Growers need to start to consider some of these things when they consider who has they sell product to.
Canaryseed delays into MExico-there is a feeling that dirty canaryseed has been shipped into Mexico and is part of the basis for the currents issues we have re buckwheat. Again, the buyer wanted cheaper uncleaned product, but has totally screwed trade for over 2 months, into the biggest market we have. I am all for open enterprise and free markets, but there is risk being added to special crop markets. These are not like the big grains that are shipped for further processing (milling, cleaning, etc). These are whole food ready to eat products.
Same problem as Hessian Fly into Korea. They stopped shipments of feed peas into Korea because they contained Hessian Fly. Why was a insect that laid eggs in wheat straw found in Pea shipments? BEcuase they add in dockage at the coast to max the allowed foreign material level. Same thing is happening with lentils. Do large grain companies care? No, they will just switch to a different commodity if there is a ban, and shit runs downhill.
Peas into China-complaints about splits and quality. Does the line co care? Not really, it is all about thru put. Peas are traded for 10 dollars per MT in China. That is the margin, plus margin to load the boat of similar dollar amounts. Complete bastardization of the product.
Line compnanies have large lines of credit becuase the CWB backstops the cash flow. You pay for that immediate payment twice as they pay less for the lentils and it is subsidized from your CWB grains. Generally Viterra is 2 cents below the rest of the trade, becuase they can, becuase farmers will let them be. Why-becuase they owe them for inputs and farm the farmer. It is their inhouse language for tieing the grower with seed and purchasing.
Additionally, there are only a few buyers in the world that can buy boat loads of red lentils, and that is the only place they can really be competitive. Ocean freight is 50 dollars per MT cheaper then container frt and they pay the grower 1-2 cents/lb less, so they will be in it until ocean frt and container frt comes together then off to the next crop. There has already been risk in Turkey, to the red market in Canada, because GMO's (canola) was found in red lentil shipments that went into Turkey last fall. This was resolved, but is a tool coutnries can use to whack the markets down. Growers need to start to consider some of these things when they consider who has they sell product to.
Canaryseed delays into MExico-there is a feeling that dirty canaryseed has been shipped into Mexico and is part of the basis for the currents issues we have re buckwheat. Again, the buyer wanted cheaper uncleaned product, but has totally screwed trade for over 2 months, into the biggest market we have. I am all for open enterprise and free markets, but there is risk being added to special crop markets. These are not like the big grains that are shipped for further processing (milling, cleaning, etc). These are whole food ready to eat products.
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