The CWB in an Open Market

[$short]

Good topic Charlie. We need to know how the new system will work.

-Price discovery for Durum will be a big challenge. Im not sure if a futures contract will work if the volumes are low.
-Financing grain purchases for the Graincos will be a new cost for them.
-Rail logistics and pre-booking of freight will be different
-What role does the CGC play in the non-cwb world. If grainco is buying on certain specs for their customer why will we need the CGC to say what it should be.

[$short]

Charlie

Is there any Export Financing Guarantees available from the Federal Govt. Do other industries have access to financing programs. For examaple the mining sector or manufacturing sector.

How do these industries finance global sales. Maybe the banks have export programs.

Sorry, my question mark button is broke on my laptop. haha

[charliep]

Agree that sharing of risk and financing of inventory should be a big benefit to a renewed CWB and why a grain company would want to continue to use CWB services in an open market. Also retaining customer relationships and being able to package business (perhaps via long term agreements) will be a benefit to a grain company.

Would also agree farmer support is a big unknown. Is farmer support for the CWB the equivalent to a mile wide and a mile deep or a mile wide and an inch deep. The CWB will have to be really creative in how they add value and show benefit to farmers. When you get beyond the rhetoric of single desk, that creativity is really lacking now.

[charliep]

They use things like the Export Development Canada. Crop industry including the CWB also use these products for specific customers.

[Burbert]

Farmer support means NOTHING. The mighty
majority REFORMERS will do what they want.
WARNING "Current government does contain
nuts".

[agstar77]

Wouldn't it be a hoot if the FFJU got the CWB back with the added bonus of a marketing tariff to the Grain companies. Now that would be Justice.

[$short]

The first question that needs to be answered..........Are they planning on keeping the CWB

[TOM4CWB]

$short,

The first question to ask Oberg/Wells/Korni/and the rest of the 8 wonders of the world... do they want a commercial premium based marketing agency... or are they going to sabotage the CWB and kill it?

They can kill the CWB. They have taken every opportunity to kill the transition to a volutary system.

[$short]

Good point Tom. Its up to the forward thinking directors to chart the path for the CWB. They say they have 3 or 4 models they are evaluating. When will they show us what these plans are. They dont seem to be able to look beyond the politics of it all.

[charliep]

Why should the survival of the CWB be a government decision based on legislation? Why shouldn't the decision be a farm management/business one based on use and value? Is the CWB business case such a weak one that it can't survive on its own merit?