New Pasta Plant

[wilagro]

Excerpt from: The Canadian Press - ONLINE EDITION

Prime Minister Harper at announcement of $50M pasta processing plant for Regina

By: The Canadian Press

REGINA - The end of the Canadian Wheat Board means a new $50 million pasta processing facility for Regina.

Prime Minister Stephen Harper was on hand as the Alliance Grain Traders Inc. announced plans to build a new durum wheat and pulse milling facility.

The alliance says it wants to build on the new economic opportunities created by the government's decision to end the board's marketing monopoly.

The Conservative government has long promised to end the board's monopoly, saying farmers should have a choice in who they sell their grain to.

Legislation to make the change is expected this fall.

The new plant is expected to generate 150 construction jobs and 60 full-time jobs when the plant is complete.

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One comment from the Winnipeg Free Press:


Further proof the price to farmers will fall with the end of the CWB. You don't
build a plant where raw materials are expensive.

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[bucket]

Interesting that the cwb didn't want to be part of new business relationship with a future customer right on the canadian prairies.

The cwb obviously isn't looking out for my interests as that plant would be within hauling distance of my farm.

I wouldn't have to sit in a lineup at Moose Jaw viterra, so they could send my durum to their plant in carrington ND.

[wilagro]

bucket: I'm sure that the new plant will look after your interests...after they look after their own first.

Time will tell as to the impact the new plant will have. I wish them well and I hope that farmers will benefit.

Nothing prevented business from investing in pasta plants while the CWB existed either...its all political.

Harper is milking this for all its worth as if his shenanigans alone resulted in this "new age" of development.

[vvalk]

wilagro. So this is all a big coincidence. The first plant in my lifetime to be built here and it just happens to be announced now of all timmes. Oh and a publicly traded company is willing to spend $50 million, just for the conservative govt? Give it a rest already. By the way what makes you think the CWB has your best interests at heart? because they say they do? Think about it.

[checking]

Glass always half empty, or what.

This is an opportunity for the CWB baking staff in Winnipeg to move to Regina to fill new positions. Great article, Wilagro, just don't see the downside for this grower the way you have.

[furrowtickler]

Willy, what planet are you on? Pasta plants have been looked at for years, but the #1 reason no plants ever could come to light was the CWB. This plant will do very well, much like the canola crushing plants that have done nothing but expand, create jobs and help keep the local price up. They must have a farmgate price equal to or greater than export or they will not get product. Adm keeps the price up here, not down. When they need product they must step up and buy it.
Man some people are so f@#king blind.

[charliep]

An interesting conversation on a day the basis for a 1CWRS 13.5 protein wheat is $58/tonne under albeit with a positive $4.48/tonne adjustment factor.

[URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2011-mhrs-20111007.html"]October 7[/URL]

<a href="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/2011-12/2011-12fpcbpccharts.pdf">charts 13 and 14</a>

[charliep]

Way off the topic but here are the published historical basis levels. Today is record by $15 in term of crappy basis.

[URL="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/basis_cwrs_cwhws.pdf"]historical basis[/URL]

[furrowtickler]

I have been watching the minny wht outpace everything lately. This could get interesting.

[rhoff]

I'm sure alliance in looking out for it's own
interests first is fully expecting to buy durum
locally as opposed to price at Vancouver. The
idea that this has nothing to do with the change
in the CWB monopoly is laughable.

[SASKFARMER3]

Tried years ago in Weyburn area to build one and guess why it didn't go? The CWB put up road block after road blocks. God its great.

[charliep]

To the original post, does the rally in Minneapolis really matter to a farmer in western Canada where being average is the law? I suspect a inverse like we are seeing today will not exist after August 1, 2012. Farmers in western Canada will jump on a market that pays a premium to deliver today versus store. wilagro will argue this is sign of market failure (western Canadian farmer took out the inverse). Farmers will still be able to sell based on market signals. Better than current producer payment options that take out the inverse based on the CWB's (not farmers) risk management needs.

[charliep]

I will note that the basis levels have also weaked in the US as well. On the other side, a Montana farmer is pocketing $2/bu more (plus delivering sooner) than their Alberta neighbor signed a fpc/delivered today.

[URL="http://wbc.agr.mt.gov/Producers/pricing_current.html"]Montana Wheat and Barley comittee[/URL]

[wilagro]

checking: I quoted a press release. It makes out that the reason this new plant is being built is because the atmosphere for investment is so improved because the CWB is soon to be kaput.

The TRUTH is...the company already has plants in Alberta, Saskatchewan and Manitoba that were established while the CWB was in existence and in fact they were processing lentils, peas and beans for export and domestic production for years already. From what I read it has been very successful.

I certainly don't see a downside to the new plant as it will process Canadian grain.

What pisses me off is the Harper connection and the political hay that is generated by this announcement. They never miss a chance to crow.

[food4u]

Wilagro- would you like it better if Ralph and Dwayne made the announcement?