Do grain processors like dealing with the CWB?

[TOM4CWB]

Many European and others as well...(processors) think it is 'nifty' to have the CWB hold reserve stocks in western Canada especially when the markets are volitile.

In Winnepeg Feb 2008 a British Miller dressed me down and took a strip off me for complaining about the lack of pricing transparency... and being required to hold inventory at no cost to them.

Won't soon forget that day,

YES those with no scruples... know grain farmers captive to the CWB give away big time value in western Canada.

[TOM4CWB]

Charlie,

The lack of competitive transparency in buying grain from the CWB is worth big $$$ to them.

Over and over I have watched... the CWB sales are often made when millers have VERY stong indications markets will rise... with NO signal back to grain growers the business is being locked up. No basis premiums required... volume assured without a church mouse knowing it occured.

THis lack of price transparency is one of the biggest faults of the CWB.

At an auction... everyone is aware... and the information feeds the market... when a HOT product is on the block for sale. NOT so with the CWB. Hence the run ups in prices and basis premiums in the US are massive... growers there expect to be paid well for holding grain... especially in times of shortages.

[TOM4CWB]

IF,

"Personally I tell my customers to go screw themselves. But that's just how I roll."

OK... so I must be your customer... you must be working for the CWB!

[JDGreen]

your comments are spot on Tom. Im quite certain there are mills peeing their pants wondering about supply security in the future and at what cost. The CWB's model is masterful at kissing their asses all the while giving our grain away to them. SMRT !!

[jdepape]

CNMA used to have a policy that they will
support the CWB as long as they mimic the open
market. That was the genesis of the DHC price
(domestic human consumption) for domestic
mills. It is based on a formula starting with
MGEX wheat, cash basis, freight, freight
adjustment and FX. It allows them to do all they
would do in an open market but through the
CWB.

Their policy has been, as long as they have the
DHC price policy, they will support the CWB. I've
been told that they are indifferent between the
open market or the single desk. Bottom line is
they like the open market, but as long as they got
the same through the CWB, they're willing to stay
quiet yet supportive.

I don't think any of the millers are too concerned
about the loss of the single desk.

[TOM4CWB]

John,

Some Millers like Robin Hood... and Bakeries like Demsters... have been drinking of the 'monopoly' deserts... being paid handsomly to advertise the CWB logo and message.

These need to be generic programs... that don't pick winners that the 'single desk' spends $$$millions on promoting.

Favoritism is fine... if my money wasn't confiscated to subsidise Smuckers... or Dempsters... they are profitable enough without needing extra stolen from our family farm and local communities.

[Raven]

Generally, they will benefit from the captive supplies of farmer's grain. Looking back, I remember in the mid-1990s there was a year of low quality wheat and the CWB refused to sell any top grade wheat domestically and saved it all for export sales.

However, I'm guessing that situation can't repeat because of international trade agreements. For example, because of the WTO, in 1995 the import tax based on the "then price difference inside and outside Canada" was removed from section 46(d) of the CWB Act, and now millers can freely import wheat from the USA which I assume is why the CWB charges domestic prices based upon the US open market prices as jdepape states.

So the millers are in a comfortable position: captive local supplies when they are good, and access when they are not. Somewhat similar to the domestic feed grain market.