The CWB in an Open Market

[charliep]

Wheatking.

All good questions. On your question of auditability/financial disclosure that will depend a lot on how things are spun off. Would how the government spun CN into a private company provide guidance or a model?

[agstar77]

Do you think Viterra would move their head office to Main St. in Winnipeg? That would be the sum result of privatization.

[charliep]

agstar77

Just curious is you have looked at the CWB vision contained in "Harvesting Opportunity". Does this fit with your vision of the CWB? Is this privatization or not? Would this fit the business needs of farms 10 years from now?

[agstar77]

Interesting to note that all the" New CWB " competitors are vertically integrated. The "New CWB" would be even more of a niche player. Without the clout of a assured supply and delivery system , how would they have power over our local players to make them play nice? That is the value I see. What powers would they be given to make up for loss of the single desk. My suggestion is control over Rail shipping and export logistics.

[charliep]

I note you use the word business competitors where I would use the word business partners. The CWB deals with all the members of the supply chain today in a business relationship to manage sourcing and logistics. Legislation is what cements this relationship today although I would hope there is also good will and solid business based logic as well. The new world will mean the CWB will not have legislated authority but rather will have to demonstrate value to members of the supply chain starting with farmers.

The CWB recognizes the need for changes to the current Act to achieve things like setting initial payments, developing a larger contingency fund for operations, etc. Don't know how comfortable farmers are with the CWB establishing a capital base as proposed in "Harvesting Opportunity". Would be a good question for your neighbors.

[agstar77]

Partners would imply equality, I don't see any. As a sidelight , how would CWB loss hit Viterra. Would they lose market share since they are not verticlly integrated as much as an ADM. Mayo says it would be good for Viterra, they would get a better cut of International marketing!

[charliep]

In the CWB's eyes, are farmers partners or competitors? If Viterra read the tea leaves forecasting the future the way you have suggested, why wouldn't they work with a renewed CWB to offer their clients (farmers) better programs at less corporate risk?

[wmoebis]

Would the BOD be made up of farmers or all Gov't appointed? Who votes the farmers if so?

Would there be any need for Min of the CWB? Or has Mr Ritz voted himself out of a portfolio?

Farmers would have the freedom to market outside the board but will the line companies? Will everyone have to market within the standards of the Canadian grain grading guide? Or do we let 100 yrs of quality reputation go and will the customers accept this?

Every person that has an interest in wheat sales has there own idea of what is will look like and what the out come maybe. Reminds me of the crow rate the our come wasn't what anyone wanted.

I am not saying open market is wrong but, I hope Harper, Ritz and Anderson have concrete answers and let us farmers have input before they make changes.
I don't see any BENIFIT to the way the Crow was handled lets not have a repeat by this gov't.

[agstar77]

Mayo has just said they want a bigger marketing share=more profits. They would partner the same way they have done in Australia. At least farmers have some input in the CWB whether you admit it or not , try inputing to Mayo. You are asking that the CWB be a marketing partner with the grain companies .They already have world wide marketing departments why would they duplicate them just to sell Canadian wheat. It would just be cheap wheat of Canadian origin, maybe blended with U.S. and Australian wheat.

[charliep]

Do you favor the CWB owning assets?

[agstar77]

If they are profitable and necessary to grain sales .

[Wheatking]

Why should they have to own any assets. Would
it not work if the govt legislates that the line
companies have to handle the grain at a certain
handling charge. Should be no different than
the railways. Listening to kornerchuck on the
radio today saying this was the end of the world
just about made me puke.

On a side note, I am not completely certain that
mayo with the other line companies are terribly
happy about this as a large proportion of their
income comes from the handling of cwb grains
with highly inflated handling charges, at least as
compared to other grains. I guess they may lose
some on the handling end but gain on the back
end, or processing end.