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AWWPC Media Release: Producers don’t need another CWB survey

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    AWWPC Media Release: Producers don’t need another CWB survey

    July 5, 2011 (Calgary, Alberta)—Producers don’t need another costly survey for the Canadian Wheat Board (CWB) to move to dual marketing, says Kent Erickson, chairman of the Alberta Winter Wheat Producers Commission (AWWPC).

    Erickson, who farms 4,500 acres near Irma, Alta., opposes a CWB decision this past week to hold a survey on the future of the grain-marketing organization. The minister of Agriculture and Agri-Food Canada, Gerry Ritz has said he wants to make grain marketing through the CWB voluntary beginning Aug. 1, 2012.

    “We strongly support Minister Ritz’s plan. Western Canadian grain producers have clearly indicated their desire for market choice in a number of ways,” Erickson says. The CWB’s own producer surveys over the years have shown that many farmers believe there is a role for a voluntary CWB. In a 2007 plebiscite, grain producers voted 62 per cent in favour of a dual market system.

    “And farmers gave Stephen Harper and the Conservative Party a strong mandate in May’s federal election,” he adds. “Instead of a survey of CWB permit holders, we feel the CWB could better serve farmers by preparing a business plan that demonstrates how the organization would effectively operate in an open market.”

    Rick Istead, AWWPC’s executive director, says: “It’s time for the CWB to think out of the box, be creative and show leadership, rather than being resistant to change and defeatist in attitude.”

    As both consumers and suppliers of goods and services, producers deserve to have the freedom to sell their wheat and barley to whomever they choose, Istead says. “Such freedom works very well for non-board grains and for Canadian farmers outside the CWB’s jurisdiction. We believe it will also work for wheat and barley in Western Canada.”

    The Alberta Winter Wheat Producers Commission is a provincial grower organization focused on a strong and sustainable winter wheat industry for the benefit of all Alberta producers. The AWWPC leads efforts to make winter wheat a viable crop option by supporting innovative research, developing value-added marketing programs, and providing producers with relevant and timely information.

    #2
    Remind me again why morons like this care what happens to the CWB?

    Comment


      #3
      The 2012 winter wheat crop is 2 months
      away from being planted. It would be nice
      to have some clarity in how we'll be able
      to market it.

      Comment


        #4
        Perhaps to both of you. What are the questions that need to be answered? From the federal government? From the CWB? Are there ways the CWB and the federal government can work together to answer? The CWB's own survey indicate farmers desire for change.

        An example would be a series of products/programs for winter wheat outside the pooling system even in the coming crop year offered by the CWB, supported in principle by the federal government and administered by grain companies? Not the politics of single but practical solutions to a market challenge. All the creativity in western Canada but it all comes to CWB ideas, the most creative thing is the a more innovative use of the "F" word.

        Comment


          #5
          OK Charlie, since you asked... my ideas
          of what needs to be done to start with:

          - Identify branches of the CWB that can
          be parceled off and run independently.
          Possibilities for new spin-off business
          include but are not limited to:
          WeatherFarm, GrainWorld, The
          library/research/global analysis
          function, Producer car administrative
          services, Freight forwarding and
          logistics services

          -Set up a market development and
          advocacy unit for wheat, durum and
          barley along the lines of existing
          producer associations such as Pulse
          Canada

          -Establish the contract parameters of
          voluntary pooling

          -Negotiate handling agreements with
          elevators and shippers

          -Develop alternatives to address the
          credit and financing issues of counter-
          parties to producer sellers of wheat,
          durum and barley in the absence of the
          initial payment guarantee

          -Undertake consultations with end use
          customers regarding their concerns and
          needs in the absence of a monopoly, with
          an eye to maintaining strong business
          relationships for the future and
          enhancing the long-term competitiveness
          of the voluntary pool.

          www.farmlinksolutions.ca

          Comment


            #6
            Brenda

            Agree with what you highlighted.

            Points 1 and 2 I will leave for others. Four of the five next items listed are CWB actions. Handling agreements could be commercial but also could have elements of regulation. Federal governmetn initial payment guarantees could be left in place in the short term or at least until WTO is implemented (if ever).

            Will note winter wheat seeding decisions have always been made in an information vacuum. Yes, a farmer could sign a futures only BPC. Other than that, they have historically made the decision on hope and faith. The new world (including a competitive new style CWB) should have the opportunity to fill in the information gaps in the supply chain seeding to delivery based on the opportunity to develop closer value chains relationships. Will it happen? No idea. Limited incentive to do this today.

            Comment


              #7
              And what are they doing so far? Wasting money on a vote that is non-binding.

              Pure genius.

              If Oberg had an ounce of integrity he would resign.

              Comment


                #8
                What a mixed up Orwelian world we live
                in Intergrety means treating people like
                crap. The NFU is just a front for the
                NDP that gives them the sickle throwbak
                to their rural roots as well as a place
                where backyard chicken farmers go to
                feel good about themselves.

                Thanks Charlie and Brenda it seems you
                two have put more thought into a post
                Monopoly CWB than the entire CWB.

                I have always thought that they could
                provide value for those that wished to
                participate. But if its all or nothing
                don't let the door hit you. On the way
                out.
                I won't be losing any sleep for those
                who don't want to help themselves. The
                cost to farmers and the entire ag
                economy is simply to great to leave
                things as it has been, simply because
                some directors lack imagination.

                Comment


                  #9
                  Interesting to see where winter wheat will go in a
                  post CWB. If we think we will move towards
                  arbitrage with the American's we will see spreads
                  narrow between winter and spring wheat. Other
                  side of the coin is that we have built an expectation
                  of lower value winter wheat over time. Post CWB
                  does open up the opportunity for a winter wheat
                  with spring wheat quality and we know that is being
                  developed. This would open up some opportunity
                  for producers in more marginal wheat producing
                  areas to have a better chance for consistent quality
                  and actually get paid for it. The CWB has a proven
                  track record of dismal failure when it comes to
                  winter wheat and any future without them in
                  control should pay some dividends.

                  Comment


                    #10
                    Craig,

                    The CWB has proven over and over to us... that they discount our price... and force that lower price on Winter Wheat growers. Forcing delivery of Select with good protein (px)... into the generic wheat market with NO payment for px for years.

                    No wonder grain co's are pro's at giving growers less... they just watch how the CWB steals from us grain growers... copy and paste. Simple. And they feel justified doing this,,, because the CWB does it.

                    Comment

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