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    Bizarro Grainworld

    Bizarro Grainworld(PRODUCER.com; 2012-02-28)
    Ed White
    PRODUCER.com
    2012-02-28
    It’s a truly bizarre Grainworld this year, stunningly different in tone from the one I have been
    covering for a decade.
    It’s a bizarro world, in which everything you expect to see at Grainworld has been replaced by its opposite. It’s a little unsettling, because many of the speakers are the same, but they saying
    different things, or saying what they.re saying in different ways.
    Obviously this is a product of the conference being dropped by the Canadian Wheat Board and
    picked up by Wild Oats. The board-dominated conference hosted a lot of CWB staffers giving their take on where markets were now and were going in the next year, and gave them a chance to demonstrate what they believed to be their competence and the presumed advantages of their single desk system.
    Basically, it was a stage upon which the CWB could stride and pirouette, comfortable in its position as a world-leading exporter of grains.
    That’s all gone this year, both at the conference and at the board itself. The new CWB might not be handling much grain at all next crop year, for all we... or they... know at this point. It’s all
    up-in-the-air. And without its dominant role, it’s become a much, much smaller organization in
    terms of the prairie grain economy. It’s played almost no role at the Grainworld conf so far this
    year, although this morning marketing manager Gord Flaten will be part of a panel talking about the future, so the odd absence of the CWB will be mitigated somewhat.
    But the bizarro element of Grainworld, to me at least, is the speed with which the rest of the industry has shoveled dirt on the casket of the old CWB and thrown off any polite recognition of its possible former value. Yesterday there was a general message from a few speakers about the idea that prairies farmers have been growing the wrong kind of wheat for years, and should get away from low-yield, high-quality stuff that isn’t bringing the premiums it’s supposed to bring. The implication here, and at conferences I’ve been to all winter, is that the old CWB worked hard to convince farmers to grow wheat, durum, and barley that it could most easily sell, but which probably wasn’t the best-returning sort of grain for farmers to grow. High-yielding, low-quality, low-input, low management wheat will probably make the farmer more money, was the view that was coming across from a few people. That’s an argument that’s been around for years, but now people at Grainworld feel free to say it out loud, and weirdly there are few to defend the former board’s legacy. Present board staff work for the government now, and it’s the government that never believed in the single desk and which wants to see a viable open market CWB.
    So it’s not their role to speak up for the single desk board, which is something they always did before. It must be a bizarro situation for board staff to now be trying to convince people the board is viable in an open market when the argument just five months ago was that it was unviable and pointless without the single desk.
    The most bizarre element of this iteration of Grainworld is the list and tenor of some of the people who have taken the podium. Gerry Ritz gave a triumphal speech yesterday, and Jim Pallister gave a quite moving hymn of praise for the new marketing environment. Somehow I doubt they would have been doing that if the CWB was still running Grainworld. Of course, the new CWB might have had these folks there, because the new CWB is a totally different organism to the old one.
    But it’s a bizarro world this year at Grainworld, and I’m heading back right now for day two.
    Perhaps a bizarro Ed White will appear there, this one well-dressed, shaven, prepared and
    uncynical. He will also be tall and wealthy.

    #2
    Ian White
    Slave Lake Lakeside Leader
    Letters to the Editor, 2012-02-29, p. 12


    The CWB has been competing for global grain sales for 77 years. Now the CWB is ready to compete for farmers' business.

    We have developed a solid set of marketing programs designed to meet farmers' pricing, risk management and cash flow needs - in short, excellent products to create a well-rounded marketing portfolio. I invite farmers to register for e-mail updates at cwb.ca/email, so they can receive all the details as they become available. We'll be offer-ing cash prices, including futures-based contracts, and especially pooling.

    Why pooling? Because it's the proven best strategy for generating the best returns - consistently, reliably, year after year. The evidence on this is clear, as is the fact that the CWB does pooling better than anyone else. Large numbers of farmers continue to tell us they want to pool their grain as a part of their individual marketing strategies. It simply makes sense. Look for pools for spring wheat and winter wheat, for durum and for malting barley. As we move ahead, we'll be consulting with farmers about the demand for pools for other crops as well.

    Look for announcements about our contract details and handling agreements as we roll them out to ensure that Prairie farmers have options to deal with the CWB no matter where they farm. Our goal: positive partnerships that serve the business needs of farmers, the CWB and the grain companies.

    There's a lot to accomplish before the beginning of the new crop year but the fundamentals are very good. We head into this new era with several key advantages: our government-guaranteed Triple A credit rating on borrowings; the fact we'll start the new crop year with a clean balance sheet; our unmatched global reputation and marketing expertise; and our longstanding relationships with customers who want to keep buying from the CWB.

    In my view, it all adds up to the CWB being a good option for the Prairie farmers we're committed to serve.

    Ian White CWB President Winnipeg, MB"

    It is truly hard to argue with Ian... Whether pooling is a best option for your farm is a simple choice... to pool or not to pool.

    Grainco's will provide cash prices... and cross subsidies between classes and grades will have competition to break these barriers to arbitrage down.

    I truly look forward to Ian providing our farm marketing opportunites... and as we are diversified in whom we buy farm supplies... so the same is prudent in whom we sell our produce to.

    Cheers!

    Comment


      #3
      Enjoy it tommie, yous guys/gals created
      this f'd up new marketeering system,
      cousin yous tinks ya got yer leg up on
      everyone else. Your loud mouth antics,
      have gotten the attention of the Comedian
      gobermont and the crackers that r in it.
      the cwb is toast, letter rip ever man fer
      himself. Who gives a f aboot Grainwold
      now anyway, except apparently yous????????

      Comment


        #4
        A theme of Grain World is a different risk profile for the industry in general and farmers in particular. Many of the speakers (I was there) highlighted that price pooling is still a very viable alternative for farmers. Behind that is the benefits to the whole supply chain of using this alternative and the financing/risk management tools the CWB will offer the whole supply change.

        Always a frustration but the biggest supporters of the CWB seem to be the ones who say they will not use it in an open market but the farmers who supported change are now the ones who are wanting to understand CWB programs and how they can be used in their marketing plans.

        Burbert - Have been a part of organizing and an attendee at most of the Grain Worlds over the past 20 years. The similarities between this years program and the past ones far out number the differences. The world has changed in western Canada but the grain market around us will not be impacted that much. A topic that was dealt with is shifts in acreage with crop rotations in Alberta and re-alignment in Saskatchewan/Manitoba after last years floods a bigger driver than CWB changes. How farmers interpret and use information will be interesting to me.

        Comment


          #5
          yeah, it will be INTERESTING TO YA!
          Meaningless though in the long run, cousin
          yous in a gobermont job, puttin in time,
          awaitin a great sugar coated pension. In
          the mean time, watchin the chaos, and how
          it will affect Comedian framers in the
          long run, will indeed be interesting!!!!!

          Comment

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