export records without single desk

[charliep]

I will highlight that the CWB has and does make sales to maltsters/exporters
without farmer contracts or knowledge of western Canadian quality. There is
always a significant book of sales on through the spring and summer prior to
harvest. Cash plus is different in that there is a farmer delivery contract
including price (with or without an "Act of God" clause).

The malt barley question will be an interesting one in the new world. I think
malt barley exports will increase significantly after August 1 and the total value
of barley will increase. Not what Schmitz and Schmitz say based on their
theoretical model. I digress.

[malleefarmer]

wmoebis the grading is all done by sofia infratec protien/moisture/bushel weight machines and screenings are done by another machine.

Every elevator has the same machines.

The only human input into our grading is staining and number of insects imputiers in a sample if its warranted.
Shot grain is done by visual and or falling numbers machines

Elevators here in South Australia are 75% owned by vitterra and 20% owned by AWB and now a few private storage sites are coming on stream to offer more competition.

Its in vitterra best interest to all buyers operating at there sites as they need througput of tonnes to make money regarless of who buys it.

Of cousre vitterra have a distinct advantage knowing exactly what is int he system at all times

Hope im not boring boring you guys with this stuff

[charliep]

Not boring at all from my side. A mechanic so nice to talk about the physical way things happen in Australia and functions of market participants. Australia is a model that will be reviewed here in Canada for the changes that are moving forward to the CWB.

On that front, are you aware of any farmer based studies that demonstrate a drop in prices/revenue after the single desk was removed? That is the arguement you see in Canada all the time but I have never seen any articles, studies, etc, from Australia that would document this. Australia has always been aggressive in making sales (even in single desk days) but that was from a Canadian perspective as a competitor in the market. To get everyone really cranky, Aussie share of the Japanese wheat market has been increasing while Canada has been shrinking.

[TOM4CWB]

Dear Charlie,

Same for US sales.

We had an opportunity to be providers... but chose to save the 'single desk' and reduce volume and revenue from these premium markets.

Instead we ship grain to the east coast... and back again... to prove how good the CWB is at logistics. Then we sign multi-year shipping contracts to subsidise wheat sales to the EU and Africa... wow... we are brilliant marketeers!

[charliep]

Sometimes we (the CWB) sells feed wheat off the east coast and moves it south to the Carolina's. Pretty expensive freight bill.