The Future

[charliep]

Day after the last CWB director ballot has been postmarked and a
weird question about the issues that will be discussed in the next
set of CWB director elections. I come to the three CWB pillars and
what will change in the next 2 years.

GOVERNMENT GUARANTEES? WTO? Contingency fund to backstop
overall CWB operations?

SINGLE DESK SELLING? Been beat to death in this election - almost
the only issue. No idea.

Price pooling? I am going to stick my neck on the line and suggest
some form of fully cash CWB pricing will be in place by the next
CWB election. CWB prices to farmers varying daily and matched
against sales to customers with no relationship/need to manage risk
relative to the pricing pools. Barley for sure (feed and malt). Likely
feed wheat and alternative wheats. CWRS/CWAD will be the last to
go. Note this was the recommendation 12 plus years ago.

[cottonpicken]

the stages:

laugh
discredit
fight
accept

Very good thoughts Charlie.

[TOM4CWB]

Charlie,

As it stands today every single tonne of wheat/grain the CWB markets must go through a pool account... whether or not a 'designated area' grower delivers a single gram to the pool; but instead delivers to the PPO programs.

THis is the essence of the 'single desk'... to keep prices fair... everything MUST be pooled.

Will this change? Organic growers sell outside the single desk... cause they have flat rate charges that are absolutely disconnected from the CWB Pool accounts. IF they want. CHOICE.

Clearly as with Organic grains... the CWB CAN do absolutely anything... if the managers today SAY... in their opinion... the program being offered does not effect the 'Single desk'.

That is why the Pro CWB 'single desk' side is so dead set against the candidates diverting attention AWAY from the CWB 'single desk'.

The CWB 'single desk' has virtually nothing to do with premium prices in growers pockets... cause the CWB has absolutely NO MONOPOLY on the grains the 'single desk' sells and markets.

Any country, buyer, miller, or consumer... can buy wheat or barley... of at least equivalent or better quality... from optional origins out side the CWB 'designated area'.

The CWB is BACKWARDS. The monopoly is used to lower our prices that we get as 'designated area' growers... INSTEAD of extracting a premium... ESPECIALLY on a year when we have a low quality crop.

So the CWB cross subsidises high quality wheat... with returns from feed wheat. And then the CWB subsidises the feed wheat with high value wheat... WHICH is it?

NEITHER.

THIS is the problem. The CWB believes they are 'fair' by pooling prices to prove the 'single desk' 'appears' to be extracting value... when the exact opposite is occurring.

Take a look at Portland prices Dec 3/10

DNS 14px is worth over $12/bu right till July 2011... and the CWB offers us under $9/bu for quality as good as or better than the US DNS.

So... there is close to $3/bu missing... that is going into the pooling system... to make sure we are all 'fairly' getting the same CWB 'single desk' price. The (px) protein premium is getting larger by the week... and the CWB uses initial prices that change a couple of times a year to regulate the px spreads.

Durum is worse. A bigger spread. No wonder the boats are waiting for the durum to show up in Vancouver B.C.!.