Do grain processors like dealing with the CWB?

[monte]

After reading some of the threads and ideas about the CWB business model tonight, it got me thinking about a regular business. You need satisfied customers. There are alot of western Canadian producers who are dissatisfied suppliers.

Does the CWB have any grain customers that will stick with them if there is a competitive choice?

Does the CWB have any competitive advantages? Low cost structure? Brand equity? Commodity marketing whiz kids?

I am interested to know if the companies and countries that actually buy the wheat and barley from the CWB like buying from them?

Any experience out there?

[Hopperbin]

2 elections ago, the Chinese expressed concern over guaranteed supply of wheat.

[jdepape]

<a
href="http://cwbmonitor.blogspot.com/2010/12/wh
y-does-cwb-treat-its-customers-better.html">Why
does the CWB treat it's customers better than
farmers</a>

[JDGreen]

Yes they love dealing with the CWB. Put yourselves in their shoes, its like shopping at walmart where the lowest price is the law.

[jdepape]

let me try this again....

<a
href="http://cwbmonitor.blogspot.com/2010/12/wh 
y-does-cwb-treat-its-customers-better.html">Why  
does the CWB treat it's customers better than  
farmers</a>

[Hopperbin]

It worked the first time Jdepape :-))

[Hopperbin]

Although it hits me that link, cause I made every effort to deliver the last 2000 bushels of CWSWS wheat some years ago and with the cwb no defined delivery point contracts puts the onus on the producer, I wanted extra time to make delivery and still hold the said grain 4 years later at a stalemate with the CWB. I want to make delivery at my contract price which is again today about maybe 2 bucks under what I contracted. I just want to deliver my grain. It is interesting that a customer can delay delivery, and I haver no chance of delivery but have the grain and get charged 2 bucks at the time. jdepape I don't think our buyers really want this type of relationship with farmers either.

[Hopperbin]

Anyone want to bet a hundred bucks I don't get to vote in this CWB deal, like ooops.

[Integrity_Farmer]

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

[charliep]

Not sure how the Canadian National Millers Association will come out on the single desk. CWB effectively has a commercial system with the domestic millers with a full line of pricing products equivalent to what a US flour mill would get offered. One stop shopping for all mills/no competitive advantage to individual mills except timing. Any issues are dealt with behind closed doors. Maltsters and brewers also have been quiet but their relationship with the CWB is lot rockier for a number of different reasons.

The CWB did a survey of its export customers in 2009 (may do yearly - not sure). Have seen the results but can't find except the one graph below. Export customers are generally happy with the CWB service in a very competitive world market.

[URL="http://www.cwb.ca/public/en/farmers/popups/csi09.jsp"]Export customer satisfaction graph[/URL]

[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.