CWB Annual Report Released

[charliep]

[URL="http://www.cwb.ca/public/en/about/investor/annual/"]2009 11 CWB annual report[/URL]

[bucket]

charliep

Could you explain page 90 on the asset and liabilities on the derivatives?

[TOM4CWB]

Charlie,

The first page of the 09-10 CWB Annual report... has enough errors to sink a ship.

1. The CWB is not owned by farmers.

2. How can the CWB claim 'record' earnings... when they are lower than the past 2 years?

WHO wrote this?

Please excuse me... I need to use the throne room...

"A message from the chair
of the board of directors
and the president and CEO
November 2010
Working together builds
strong relationships.
Western Canadian farmers, by working
together to market their grain, created
the Canadian Wheat Board in 1935.
On the CWB’s 75th anniversary in
2010, the deep-rooted tradition of
Prairie cooperation lives on. Today’s
producers still reap value from joining
forces to maximize their returns and their
competitive position in a marketplace
dominated by bigger and fewer players.
As farmers’ representatives and their
organization, our goal is to make their
aspirations a reality.
In 2009-10, farmers received $4.6 billion
in returns for the sale of their grain,
one of the highest overall returns in
history (although significantly lower than
the previous two crop years, which saw
dramatic rallies in highly volatile global
commodity markets). Total CWB exports
were 18.7 million tonnes, the highest
volume in 10 years, up 300 000 tonnes
over the previous year.
The CWB not only brings farmers
together as sellers, it is a tool for
connecting them with their customers
around the world. As the marketer
of western Canadian wheat and
barley for 75 years, the CWB has
built long-standing sales relationships
based on reputation, trust and a solid
understanding of customer needs.
As a farmer-owned marketing
organization, we stand out in a world
marketplace dominated by large
multinationals, and consistently earn
higher prices than our competitors
(see “Measuring Success”, page 45).
What makes us strong is our single-desk
structure, the farmers behind it and
the superior product they grow –
people like Kerry Maurer and his
daughter Amy, who farm together near
Yorkton, Saskatchewan (see page 8).
The 2009-10 crop year was a good
example. Exceptional September
weather – along with farmers’
perseverance – rescued a large Prairie
crop that had faced dismal earlier
prospects. The result was a large all wheat
crop (24.6 million tonnes) of very
high quality, with 78 per cent of the
spring wheat grading Nos. 1 or 2.
The biggest challenge of 2009-10
was the abundant supply of wheat in
the international market from most
grain-producing regions of the world,
creating strong export competition for
reduced import demand. Despite this
reality, the CWB accepted 100 per cent
of the non-durum wheat offered by
farmers and greatly surpassed our early
expectations for sales of both durum
and malting barley."

If this is an indication of the ethics and honest disclosure of the facts...

What exactly does the rest of this report mean???

[charliep]

Not sure what the derivative assets and liabilities mean on page 90. Good question for the director meeting in March.

[bucket]

It looks like they moved assets into a liability, which means they expensed out some trading losses????