CGC Grades and Blending

[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.

[Hopalong]

Still waiting to hear from anyone who has recently used dispute settlement mechanism.
A credit to grain companies if nobody has.
Bill C48 to modernize Canada Grain Act would allow grain commission to administer a Producer Compensation Fund to protect producers in event licensee refuses to pay.
Would also extend right of producer to seek binding arbitration of grade and dockage on deliveries to processing facilities, grain dealers and container loading elevators.
Can remember pinnacle of wheat board and wheat pool power when we last used grain commission for dispute settlement.

[farmaholic]

I wouldn't lay too much honor at the feet of the GrainCos. The fact that there is a watchdog in place and some sort of dispute settlement mechanism available would tend to keep them somewhat in line. Just like common people, the threat of the law and police keeps most from becoming theives but some people are still willing to take the chance or know how far they can bend the rules.

Besides, now they don't have to steal value with
misgrading and taking too much dockage, they can do it the legal way with "basis".

[Hopalong]

Think it works both ways with CGC.
Reason producers are less willing to challenge grain companies may be loss of blending benefit.
We certainly appreciate "paper blending" for moisture, protein,green seed, etc , instead of load by load.
As much or more to do with competition as having CGC for a watchdog.
Not saying CGC is bad, just be careful how much power it has and conscious that someone has to pay for cost.

[farmaholic]

When I take a representative sample to the Primary Elevator that represents 20,000 bushels, they better realize an 1100 or 1500 bushel load is only a percentage of what the "representative" sample will look like when all the loads are hauled and combined. There is no such thing as paper blending in this instance. Just another guilt trip and head game they play to make you think you've been done the biggest favor ever.

[wmoebis]

Hopalong As far as grades and handling goes I haven't used dispute resolution because I know my rights and responsibilities and legal/proper grain grading and handling of my sample.

I can usually avoid disputes. I delivered CNL to an elevator that wasn't properly assessing DKG on my canola.

When I brought it to their attention, They had to phone the CGC to find out if I was right and how to properly do DKG. Why wouldn't they know, they are the ones we trust to know and do things right?

By them making 1 phone call we avoided the dispute resolution and saved me almost $2000.00 on 1 rail car of canola.

They are doing DKG on every sample wrong and nobody questions it. WHY?

I can show you lots of elev that are doing DKG wrong on every wheat sample and nobody asks for 3rd party. Or questions the elevator. In a lot of cases the employee doesn't know they are doing it wrong. And farmers don't know, so what is to resolve when nobody knows the rules?

I don't for one minute think that the front line workers or Marketers are out to screw anyone, they don't write contracts or make policy, the graders are only told what/how to do things and how to grade.

Even tho it is in the ACT and Guide on proper procedures and financial penalties if not followed, no one is enforcing them. Kinda like have speed limits and no enforcement so some people are going to speed if no consequence.

Makes me think of getting change back from cashier. Few say anything if they get too much back but bring it to their attention if they are short. Everyone has to look after their own interests. Then bring in 3rd when can't be resolved.