Stewart Wells and the AGT Pasta Plant

[Happytrails]

Opposition to this plant is too stupid for words. Gives me the willies. HT

[wmoebis]

I think this is great news and long over due.

However I have questions. Since the CWB is still in place and may or may not be gone in the near term, is this anouncement contingent on it's removal?

Secondly, The pasta plant in ND buys AD from Canada, I would think it has to go through the CWB, so what is the dif it was built in Canada or the USA? It can't be all to do with the CWB. If the CWB is selling so cheap why haven't these companies been building here all along? Seems to be mixed messages.

[gustgd]

I would say it is contingent on the removal of the single desk.

The thing most comentators miss is the importance of the GTH (global transportation hub) This allows the finnished product to be shipped in a timely manner anywhere in the world.

[charliep]

wnoebis

I don't think you can call the domestic millling price cheap under the current system. Would be interesting to find out what farmers understanding of how CWB pricing to millers works.

My understanding (perhaps memory from the past) is pricing to domestic millers is a North America based price adjusted for location. I don't hear millers complaining one way or other about the price - reflects the market with the benefit all millers get the same price. Also domestic millers are offered a number of products including basis contracts, etc as well as supply agreements.

What I do hear complaints about (more so maltsters) is the lack of relationship between what a flour mill is paying for wheat and the price/price signal the farmer gets. It is difficult to develop supply chain relationships with farmers including delivery commitment. One of the reasons why soft white spring wheat is handled differently.

The argument is really whether farmers have the skills to market their crop for an above average price. It is also about developing a domestic value added and reducing Canada's dependence on low priced/high logistic cost durum markets around the world (bottom end of the CWB returns to pool table/daily pricing opportunities). The volatility in durum prices (more so than other wheats) reflets the tight relationship between too much and too little durum production.

[Hopperbin]

Charlie I think you said it correctly, its likely not all about price but securing supply and direct to farmer relationships.

[blackpowder]

I do try not to be influenced by the 'pig in the mud' crowd.
But damn it, to be be against any type of value adding for any sector of the economy is the damndest thing I've heard yet.
I now question what some of you do for a living.
'Export or nothing' is just another 75 year old mandate we have never been able to question!

[charliep]

For what it is worth, Canada processes about 250,000 tonne of domestically consumed durum (used in Canada as semilina/pasta) and exports the equivalent of 30,000 tonnes of durum. That compares to 3.5 million tonnes of durum exports. Been that way since the beginning of time.

[jdepape]

Al-Katib also stresses his company is not receiving any government incentives to build the Regina plant, even though he says it would not have gone ahead without a change to the Canadian Wheat Board's single desk selling system for wheat and durum.

"If we could not buy the durum wheat from the same farmer that produces the lentils, peas and chickpeas for us---we would not have a pasta plant in Saskatchewan."

http://www.saskatoonhomepage.ca/index.php?option=com_content&task=view&id=35622&It emid=424

[wilagro]

jdepape: Who cares?...only lobbyists such as ye.