Richardsons

[tipsy]

Dave41 your pretty well bang on there. What I could never figure out is why would an importing country sign a contact that allows 5,8,10%fm or what ever the number when farmers delivering this product to a buyer is in the 1,2%fm orless. Havn't this importing buyers been around to any farms and seen what is actully produced here in western canada?

[dave4441]

The buyers do not really know what that they can demand/negotiate (but everything does come at a cost) lower FM values and Viterra/Richardson have a virtual monopoly strangle on the bulk conventional business so either take it or not is how they do business. If they do not make the pea sale they just focus on canola, etc. Pure monopoly. Margins are extremly low, maybe $20 per MT for elevating on the prairie and loading the vessel. Then they make a little extra blending in screenings that they clean out of wheat/canola, etc. Bottom line is it puts these high value markets at risk and buyer is forced to take it. Again, the spread between bulk conventional and container rates will narrow and this will stop it, or at least give the buyer a choice. Growers also have a choice. As a supplier we can decide who and how our product is handled.

Pulse trade in Canada has alot of competition and overseas buyers are trying everyday to set up operations in Canada, some good, some bad. Last year Viterra/Richardson maybe did 40 to 60,000 MT of lentils, rest was handled by the exsisting trade. And they do not even market the product, most was just sold at the port (loaded) to another Canadian company who sold it to the buyer in Turkey. Smoke and mirrors.

[dave4441]

Margins on CWB grains will be way higher then Canola