Story about Canada in our Farm Weekly

[malleefarmer]

http://sj.farmonline.com.au/news/state/niche/general/canada-lesson-in-grain-milk-regulation/2307392.aspx

And was also wondering if any of you guys heard of a australian guy over there called jock munro hes been doing the rounds apparently telling candian farmers how "bad" it is in australia.

He is distantly related to some who post on agriville......

[malleefarmer]

some more with grower comments below for and against


CANADA is looking to Australia for guidance on the workings of a liberalised wheat export market following the removal of legislated grain marketing monopoly, as the country moves closer to dismantling its single desk system.
Canadian wheat and barley growers responded to a recent grain marketing plebiscite with the results showing strong support for retention of the Canadian Wheat Board (CWB) monopoly.

The CWB's plebiscite was released on Monday, showing most Canadian farmers support a single-desk system.

About 38,000 farmers submitted mail-in ballots to the plebiscite, a participation rate of 56 per cent – with 62 percent voting in favour of retaining the single desk for wheat, while 51 percent voted for retaining the monopoly system for barley.

CWB Chair, Allen Oberg said, "Farmers have spoken - their message is loud and clear, and the government must listen”.

The Canadian federal government plans to remove the CWB single desk by August 1, 2012.

Canadian Agriculture Minister, Gerry Ritz, has announced that enabling legislation will be introduced this fall, also removing the current legal requirement that such a change first be approved by Prairie farmers through an official plebiscite.

The CWB said its plebiscite was conducted to give producers a voice through a fair and democratic process.

Mr Oberg said the plebiscite results show that the federal government was “out of touch with farmers”.

Australia controversially dismantled the AWB wheat export monopoly in 2008 in the wake of the Iraqi wheat for weapons scandal, amid cries of potential doom and gloom.

Growers have since been taking advantage of the liberalised system and the capacity to sell their grain for cash.

But critics remain concerned the liberalised system has yet to be fully tested during a sustained period of over-supply, domestically and globally.

National Farmers President, Jock Laurie, was in Canada at the weekend for an important meeting of the Cairns Group, where he was quizzed on how Australian growers have adjusted to deregulation over the past three years.

Mr Laurie said the meeting with other key agricultural trading countries didn’t discuss the Canadian deregulation issue formally but there was plenty of interest outside the forum on how Australia was progressing under the new market conditions.

He said the Canadians held similar views to Australia with many being strong supporters of the monopoly export system but nervous about its removal, while others viewed deregulation as a great opportunity.

He said he told the Canadians that Australian growers remained nervous at the liberalised marketing system’s capacity to handle three large production years in a row, in particular cash flow management without a “buyer of last resort”, if grain sales slowed and export markets became harder to penetrate for specific grain types.

On the positive side, he sad many growers were marketing their grain effectively and seeing positive results from cash sales.

But he said Australia was also managing some difficult logistical issues and had experienced challenges with getting grain to port, since AWB lost its monopoly.

Mt Laurie said the CWB plebiscite would be presented to the Canadian Agriculture Minister, who will rule on wether or not the monopoly would lose its marketing powers.

At the conclusion of the Cairns Group meeting, Co-Chair and Australian Federal Trade Minister Craig Emerson was asked how ending Australia’s wheat export monopoly had affected the broader farm economy and Australia’s global wheat trading position.

“It’s had a very positive impact,” Dr Emerson said.

“The Australian experience has been unambiguously good, that it’s been very good for Australian wheat farmers.

“The Productivity Commission in Australia did a report (in 2010) and described on the basis of evidence given by our farmers the transition as, I quote, “remarkably smooth”.

“So what happened is that in moving from a monopoly situation to a competitive situation, there were not disruptions for farmers.

“Quite the opposite: it was a remarkably smooth transition.”

Dr Emerson said in a short period the number of export markets into which Australian wheat is sold had expanded from 17 countries to 41 countries.

He said it was a “dramatic lift in export performance and diversification and that’s what breaking a monopoly in marketing is all about”.

“That is, to enable competitors to put their best foot forward, to make their best offer to farmers, and it has gone remarkably smoothly,” he said.

The arrival of multinationals like Viterra and Agrium from Canada and Cargill taking a bigger role in the Australian grain market has been “nothing but helpful”, Dr Emerson said.

He said it had allowed farmers to have greater choice and market diversity.

“You know the capacity to diversify is pretty valuable to farmers and monopolies don’t tend to deliver diversity; competitors do,” he said.

“When you’ve got a monopoly it doesn’t necessarily want to maximise profits.

“It can enjoy, to an extent, the quiet life and not worry too much because there are no alternatives.

“And this is no reflection on any particular institution, but monopolies tend to get pretty comfortable with the state of the world as it is when there are no alternatives.

“When there are alternatives that means it brings out the best in everyone.

“If you’re a sports person in Canada and you enter a race and you’re the only entrant you’re probably not going to run very fast; probably not going to train very hard.

“But if you’ve got a red hot field, it’s going to bring out the best in you.

“And that’s the same in all aspects of life, whether it’s culture or sport or wheat marketing.”

Asked whether Australia had a position on Canada eliminating its monopoly, Dr Emerson said “Our approach is for free and open trade, so of course we would support Canada in its efforts”.

He said ultimately it was a matter for Canada’s domestic policy.

Cains Group Co-Chair and Canadian Agriculture Minister Gerry Ritz said Dr Emerson’s message was that Australia’s grain industry was “thriving in a free and open market”.

“They now have more than two dozen organisations accredited for wheat exports and many new jobs have been created,” he said.

“Most notably, wheat production reached record levels of 26 million tonnes last year, far and away above the previous 10-year average of 20 million tonnes.

“Our Government remains focused on our economy in which agriculture plays a vital role

“Like Australia, an open market in Canada will drive innovation, encourage investment, create value-added jobs, and give Western Canadian grain farmers the marketing choice they want and deserve.”

Mr Ritz said, “Parliament created the monopoly, and it will take Parliament to remove and move beyond it.”

Dr Emerson said, “I could highly recommend the experience of Australia in terms of wheat marketing”.

“There is no call to go back, to turn back the clock, because even those who were apprehensive or outright opposed to a move from a monopoly marketing situation for the Australian Wheat Board now realise it’s a done deal,” he said.

“And I’m not saying that every person in Australia would fully endorse it.

“But what I would say is that it has overwhelming support, overwhelming support in the farming community."



Date: Newest first | Oldest firstAh, the Canadians are beginning to see the light. Free trade rules! No more lazy protected industries to cruise along at the expense of other taxpayers and citizens.

Posted by Bushie Bill, 18/09/2011 8:05:52 AMHere is further evidence that Craig Emerson hasn't got a clue about what is going on in the Grains industry here.
Also shows how easy it is to spin production data to suit your argument, the 26mt crop last year has absolutely nothing to do with a "free market" environment and everything to do with seasonal conditions last year after 10 years of drought and the fact that there has been a revolution in minimum/zero tillage and an exodus from livestock enterprises over the same period.

Also Dr Emerson hasn't mentioned the large carryover sitting on farm and in storages everywhere.


Posted by mark2, 18/09/2011 10:26:57 AMI also find it absolutely astounding that Emerson has the gall to rabbit on about the virtues of removing monopolies whilst his government has re-regulated the labour market here to the point where it has started to severely affect our productivity as a nation.
To the Canadians I say hang on to what you have , our grains industry is a train wreck in slow motion, all we've succeeded in doing is swapping our collective marketing power for a multinational controlled mess.


Posted by mark2, 18/09/2011 10:35:16 AMPlease, Please, send jock over there to save the poor souls from armagedon. Put him on permanent.

Posted by RANKIN SPRINGS PROGRESS ASSOC., 18/09/2011 2:54:06 PMCraig Emerson doesn't know anything and I wouldn't have him in charge of the tuckshop float.

Viterra an enquiry into their receiving last years crop!!!!! Canadian.


Growers get paid, but not as much, customers extremely unhappy about quality and supply. The only people whio make money are the BHA through blending. An absolute roaring success Minister


Productivity commision just a Govt spin feast.


Posted by concerned, 19/09/2011 8:12:19 AMGreat idea I think Emerson is onto something, con the Canadians into going down this path then their system will collapse as well.

Smarter than I thought you were Craig and if the Candians are like our pollies and too stupid to listen to anything but their own BS well bad luck.


Posted by Bonnie, 19/09/2011 9:19:53 AMWith the huge carryover of unsold grain from last year’s crop not dealt with by our American style grain trade corporates the current harvest is looking like a disaster in the making for producers

Posted by Ken, 19/09/2011 10:02:17 AMAussie farmers are far too thick to sell their own wheat. I expect Canadian farmers are the same.

The single desk is a sheltered workshop.


Posted by Dickytiger, 19/09/2011 5:06:50 PMThat like the sheltered workshop that is the Australian union movement,Dickytiger?

Posted by Chris, 19/09/2011 8:28:07 PMDickytiger think of the single desk as a booking agent for a escort agency and deregulation as selling your ass on a street corner for loose change

Posted by THE FARMER, 19/09/2011 8:36:02 PM1 | 2 | next > post a comment

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[malleefarmer]

The story in first post is different that second post if you were thinking it was the same, its not.

[wilagro]

LOL...I like this comment:
"
Posted by Chris, 19/09/2011 8:28:07 PMDickytiger think of the single desk as a booking agent for a escort agency and deregulation as selling your ass on a street corner for loose change."

[Braveheart]

Most of us did feel pimped out by the single desk. And, like most pimps, when we tried to leave we'd get a beat down.

[Braveheart]

Mallee, I did hear Jock Munroe on the radio. He was portrayed as the quintessential Aussie farmer. Something about his piece sounded real insincere. It was like he was getting his 15 minutes of fame and wasn't wasting a second.

[wilagro]

Braveheart: Then how about this comment:
"
Posted by mark2, 18/09/2011 10:26:57 AMI also find it absolutely astounding that Emerson has the gall to rabbit on about the virtues of removing monopolies whilst his government has re-regulated the labour market here to the point where it has started to severely affect our productivity as a nation.
To the Canadians I say hang on to what you have , our grains industry is a train wreck in slow motion, all we've succeeded in doing is swapping our collective marketing power for a multinational controlled mess."

These comments from those who have gone through the "change" in marketing.

They know what happened in their market...forewarning us is doing us a big favour.

[Braveheart]

Take those comments and transpose them to the editorials and letters in Canadian prairie farm papers from 1907-. . . and you will find similar themes and comments. Since sod was turned here farmers, elevator companies and railroads have been at odds.

For me personally, and this is me as a farmer, I want a system where I can use competition amongst the other two to get me the best or the most timely deal for our farm business' needs. I need my rights respected to do that.

I've said before that Aus is not western Canada. I don't believe they compare well at all.

Also, our pimps hit harder. Did one Australian ever go to jail for trying to sell his or her wheat oustide the AWB? Maybe they were used to prison as the continent was once a penal colony?

[agstar77]

Nobody in Canada has either! It is the export that is illegal.

[gregpet]

I think the late Mr. Sommerville would disagree with you.