CWB business model?

[rodb]

CWB can't compete because it doesn't have any elevators or terminals. It can't compete because they would have to pay commercial rates on borrowings.
It has long term commitements on freightors.It can't compete because it has had 60 years of no competion in acquiring grain stocks and no competition to whether they were doing a good job at marketing. If we all had that easy of a start.

With all the excellent employees, you would think they could put together a business plan to keep their jobs and benefits or are the pro monoply portion of the board so blinded by ideology that they would rather see it fail than become a tool for Western Canadian grain farmers.

[wd9]

A company like market master doesn't own infrastucutre either but makes a go of it. CWB board just lacks any vision because its a board for the old CWB. New board of directors would be required with new vision in mind.

[TOM4CWB]

Rodb,

Like Amazon.com, Ritchie Bros. Auctions, www.kijiji.ca, PayPal, www.craigslist.com, ebay.com... the list goes on and on.

Billions of $$$ of intelectual property and assets... that 'designated area' grain growers have spent well over $100M on the CWB's electronic sales platform already...

Chairman Oberg and his Directors CWB wrecking ball crew of 8... should be thrown out on their ears.

This grain marketing business with goodwill should easily be worth close to half a billion... with real and good will assets combined.

It makes me sick... that they have so little vision and business brains... they are so blind and helpless... that they would intentionally sabotage these assets we have paid dearly to create.

This is a business that has sold close to $50billion... of grain since 1998... Chairman Oberg says is worthless without a law that allows stealing grain from its best customers???

If the CWB managers had any brains... they wouldn't be charging growers for export licenses... they would be gladly encouraging smart grain sales and building a stronger sales intelegence and networking business!

We are truly brainless to allow Oberg to sabotage the CWB Corporation.

[Braveheart]

I sometimes wonder if they're playing a game. Strategically, if you keep crying that you need this or that, can't exist, and on and on, there might be a move to placate "the baby" by offering more than would be normal.

Who knows what that might be. Maybe a capital base, access to grain industry facilities, special considerations at terminals.

I know this might sound ludicrous to some. But, the first rule of war or battle is to never underestimate your opponent.

[sumdumguy]

Oberg thinks he is omnipotent. Problem is that
Minister Ritz is allowing him to get away with it.
There is no reason that CWB has not been given
a time limit of say 30 days to come up with a
working plan. I know people who could design
the framework in a couple of working days,
flowchart, timelines, work profiles and lead
employees. This is not rocket science.

Many independent marketers have set their
framework up alone-from scratch and are
successful by networking and developing good
business relationships to make their operations
thrive.

There is no reason whatsoever that the CWB
can't fly without the monopoly, just stubborness
and disrespect for farmers leads their way.

Positive change can come if they could change
their attitude.

[charliep]

The discsussion to date seems to be tell me what the federal government wants to happen. There are only 3 things government can do.

Regulate - Rules are the new CWB access to primary and terminal elevators, a continued role in access to transportation, rules around access to grain company storage, requirements for grain companines to administer CWB programs and initial payments, access to export licencses, etc. Allow the CWB to carry on with regulatory authority (elements of the big stick it currently can use to beat on other members of the supply chain including farmers).

Incentives to change. Hate to use the next phrase but there is almost no problem someone elses money can't solve. Continuation of government guarantees until WTO comes into effect, a capital injection in the CWB from tax payers for the contingency fund, etc.

Education and extension - Working with farmers to develop the skill sets to operate in the new world of an open market for wheat and barley including a CWB alternative.

$short mentioned it a while back but what I am not hearing is from the farm community is what the governace structure, corporate structure and financing of this new business will look like. I like the idea of a new generation cooperative with financing and voting based on use of new CWB products and services.

[TOM4CWB]

A Name change is needed:

Canadian Western Brokers...
Canadian Wheat Brokers...

or if they decide a more international business plan:

Consolidated Wealth Brokers...

Whatever... there are endless permutations of a great name that would bring the CWB into the 21st century...

I can't believe these folks don't have a business plan. Instead of buying ships... spending our money without asking us... SAD.

Not even a question specifically about the ships in the 2011 survey... they were chicken to ask obviously. We already own railcars... there was NO reason to ask about them... just the stupid ships. They obviously didn't want to know the answer.

The plebicite being asked should be about the lakers... NOT the 'single buying desk'.

[silverback]

Canadian Whining Babies.

[FarmRanger]

Communist Wealth Blockers

Canadian Wealth Butchers

Crappy Wheat Buyers

Criminal Wheat Burglars

Cut-rate Wheat Buyer

Champion Wealth Bunglers

[charliep]

I note Braveheart's last sentence.

The range of alternatives the federal government could start with complete repealing of the CWB act with nothing replacing (organization dead) to tinkering/leaving the CWB with all its current powers with tinkering on the edges of single desk power.

[Braveheart]

I hate doing someone else's work for them, but if I wanted to design the "dual market" system it wouldn't be that hard.

It would be commercial in nature based entirely on contracts.

First, I would strongly encourage the CWB to drop the FPCs and PPOs. They are a weak immitation of the open market. The board should focus on being a pooling provider. This was mallee's term and I like it.

Second, whether it takes negotiation or arbitration, contracts between grain handlers and the CWB could be written to provide handling and terminal services to enable the CWB to serve its' customers. An axiom we use in our farm business applies here. "You don't have to own an asset (machinery, buildings, etc.) as long as you have access to it when you need it." Properly worded commercial contracts would ensure this.

In terms of rail access, this should be commercially in the realm of the elevator companies handling and loading CWB grain to secure. Revenue centers for grain co's handling board grain should shift from storage pay'ts to throughput.

Farmers of course are the important part of this supply/value chain often left out of the real commercial discussion. What I mean is conracts between farmers and the CWB don't ever seem to be binding on the board. It's some wishy washy offer/acceptance thing that the board has the only and final say on.

That said, there could be sign up dates and contracts offered to farmers, binding ofon both parties.

On our farm, a combination of cash pricing or forward selling to cover fall cash flow needs (without having to rely solely on canola or flax) then pooling from the "pooling provider" for some wheat would be an option we would explore.

Whatever develops, there is no doubt in my mind that a volutary wheat board is possible. It is a brand that some customers would no doubt want to coninue to use. Some farmers as well. But contracts between all the participants that might be involved is the way to build the framework needed.

I'll stop there and let others add their comments (or knives).

[wmoebis]

There are as many senarios as there are imaginations.

Talking to one elevator the feeling was that farmers will have to sign a contract with the CWB and/or the grain company before the grain is assessed for quality. Much like the malt is now.

This would releive grain companies from having to grade grain that they will not end up handling and know whether they are grading for CWB or themselves.

Once contracts were signed and grain companies and the CWB knew what they had contracted they would call in contracts as sales warranted.

Another elevator felt that companies were lobbying to have only liscenced companies export rights. This way grain quality would be maintained.

One milling buyer sugested that they would not be interested in producer direct procurment. The risk of getting off grades or out of spec would be too high for just in time deliveries. At leaast if a grain company ships out of spec they can return it and reload proper specs.

These are only a few of the remarks I have herd from the industry.

I suggest all to talk to your buyers and see what thier ideas of what the market place will look like. It might suprize you and you may have to alter your proposals on how you will move forward.

Non board, open market, pro board and every segment of the industry have thier own ideas and are likely lobbying for thier own agenda. At this point nobody know what it will look like and that is what is concerning most.

[Braveheart]

I know different companies and end users will all have differing views. You're also right in that no one knows for sure how this will all shake out or look like. I think that the basic framework being built around contractual arrangements allows elbow room for a number of different scenarios. The marketplace would soon decide how the evolution of a new system would proceed.

It is only the presence of the board in it's pooliing provider role that would be any different from how many other commodities are marketed. There exists all manner of companies that procure and ship everthing from peas to canaryseed, or flax or sunflowerrs or whatever. Very few have elevators or terminals and none are involved in railcar allocation. It works. It needs the will to make it work. The rest is not that hard.

[Integrity_Farmer]

Why can't you morons come up with a plan? It's your ****ing idea. You deal with it.

[Hopperbin]

Here is a plan you dink. Call it,
Canadian Wheat Associates.

http://www.uswheat.org/uswPublic2009.nsf/index?OpenPage

There, done, cannot say there is no model to follow. Funded by producer check off dollars not sure how well that would go around here. And not sure but the CWB should have plenty of experience to follow the model of what US Wheat Associates does. Some tweeking of course.