CGC Grades and Blending

[Hopalong]

Wonder how many of us still rely on Canadian Grain Commission grades.
We have not used CGC dispute settlement mechanism for many years.
Instead, we rely on competition and grain company knowledge that we will go elsewhere if not satisfied.
In recent years there has been greater willingness to pass blending gains to producers.
Hope we do not return to conflict from past.

[farmaholic]

In recent years there has been greater willingness to pass blending gains to producers..

.......I don't think so.

[CptnObvious]

I used to depend on CGC grading to maintain my export quality, they used to inspect 2,000 tonne lots. Since they were gutted they now only guarantee the whole ship will average the spec. Different holds may go to different buyers and some have been burned. Canada's rep is on a downslide.

[wmoebis]

Cptn Do you have an answer/idea to fix problem?

[sumdumguy]

CGC is a great safeguard in direct shippimg of product. In special crops, their integrity has not changed. The sample usually costs $30 odd bucks. Alternative SGS, a recognized company, respected around the world, pretty much the same cost. We're lucky to have them.

[CptnObvious]

Our elected MP should be pressured( as much as they can recognize pressure) to bring back the CGC to where it can do its job. The money spent on CGC wages is clearly far less than what is lost due to unsatisfied customers.
Hopalong has it wrong about blending. The greatest opportunity to gain from blending happens at the terminal. Years ago blending was used to maximize the value of the pools, now the terminals just keep the money. Why not? It stopped being our grain when it hit the elevator pit.

[farmaholic]

Skip-onward is a wolf in sheep's clothing, an antagonist, a plant. I have to wonder what color the sky is around the planet he comes from. An odd perspective, he has.

[Braveheart]

So a company blends to meet a customers specific requirements. So what? As long as I am paid , on time, as contract price, who cares what happens after?

Blending isn't free for a company, and if they didn't undertake blending, sometimes your wheat might not be in demand for some time, if at all.

Don't bother trying to itemize everything in calculating basis, just learn what a good basis is for your location.

We sold wheat that under the "old" system would have grade low account ergot, but the basis (marketing freedom basis) reflected a much higher grade. The company had brought in a unit train from west and blended local ergot wheat up to meet a sale to the US. We benefited from the blending. It was passed on in the basis.

[Braveheart]

Hopalong a plant? Doubtful. He's just sees grain cos as his partner in a supply chain. If he becomes unhappy with the partner he finds a different one. (Sorry for putting words in your mouth Hoppy).

This is the opposite of those who view every one else in the grain trade as untrustworthy robber barons.

[CptnObvious]

The change in the amount of money that disappears between here and port shows that they are taking three times as much money for the same work. YES, they is robbin' us.
The railways would like to rob us too but they are inhibited by the law. They make out as best they can by giving us less service for the same money.

[farmaholic]

Its never been real important to me to be part of the herd, but I think I may be in the "majority" you describe as "those who view everyone else in the grain trade as untrustworthy robber barons".

Or do you think our distrust is just folklore handed down from generation to generation from ONE bad experience that happened 100 years ago.

My reaction was to the statement of blending accruing back to Producers. What they do with the grain after everyone rightfully got what they had coming to them with no stealing protien, extra tookage, intentional misgrading is up to them, and if they see fit to "help" someone out by blending theirs up good on them. Probably can't say I've never been helped in some way but I have been, or prevented being, screwed too.......

[Braveheart]

If you all really believe you're being ripped off make the choice to do something about it.

You can haul directly to a mill. I have a neighbour who hauls to Mpls (flour mill) from southern MB. Makes 2 trips a week.

Go to the big farm and food shows in Europe. Make contacts for your commodities. Get a freight forwarder (good one in Wpg) and send containers directly to your customer. There's a farmer here doing that as well.

The point is all that is possible now. There are more choices for competition. The main barrier to it is imagination and ambition. I'm sure if you tried this you'd have new appreciation of all the costs grain cos experience beyond the farm gate.

Of course anyone not wanting the extra work or responsibility of selling direct will go the traditional route, in which case you need to rely on an elevator company. So why not build trust, demand trust, and learn more about basis for your location.

[CptnObvious]

I have investigated the mill route and they will only pay me an extra 15 cents for my super high protein wheat. Why would they pay more than that? They only have to beat the local price by a few pennies to get all they want. It is not up to them to return the stolen 'basis.'
Moving grain in containers is ridiculously more expensive than in bulk. European junkets to try to find buyers makes it double ridiculous. Especially if everyone starts to do it.

[Rareearth]

Just to remind every one.
The CWB owned no export terminals, private companies did this.
The CBW didn't own or originate any grain with their own facilities, private companies did this.
The CWB, Sales were by " accredited " sales agents, private companies, CWB would approve these sales

Basically the CWB was a grain broker.
Nationalally "government of Canada" food aid and distribution. This is in part why so many countries around the world Love Canada. It's not the climate, or ...

[CptnObvious]

The best way to protect ourselves from excess basis ant to regain blending advantages is to return to the ownership position we used to have.