Competition

[Braveheart]

SF3, the major market in Ontario is how far from SK? What would it cost you to put your canola in Hamilton? Subtract that freight and you're probably lower than Bunge in Harrowby. Do you honestly think that no matter where you are in North America the price should be the same?

[bucket]

Uh yes. Do you think oil coming out of these plants is priced differently?

No wonder people accept fertilizer prices.

We make it here but get charged a price of bringing it in from somewhere else.

[Braveheart]

Bucket, I'm just home from AgDays. Re competition, Bunge canola basis was $9 over till the window was filled. Northstar responded with $17 over till their window filled.

Love that competition.

[samhill]

Brave, I think you're competing with other farmers to fill the contract before someone else. Guess "I'm all right Jack."
Favouring some makes everyone else easy pickins'.

[Braveheart]

Samhill, my thinking is thus: I compete with me. I want to improve on my last performance, be it yield, input costs, or, marketing. I don't set out to book windows to spite or beat out other farmers. I book canola to meet cash flow need. No, I am not my brothers keeper.

I am no marketing genius. I approach marketing like every other part of life. That is, " the more I learn, the less I know".

The only thing I know for sure is, if I blame lack of competition, or grain cos, or anything else for where I find myself, I've just quit looking for a way out.

[CptnObvious]

Braveheart: " no marketing genius." ...no kidding.
Well, I am a genius and I have the Stanford Binet I. Q. test results to prove it. The other fellers are correct, there is practically NO competition out there. With two bumper crops in a row everyone has as much volume as they can handle, their problem is trying to hold us desperate farmers back. Plus, with 2-3 billion dollars per year in excess profit as things are, those grainco actual marketing geniuses would be STUPID to ever start to compete.

[mbratrud]

Braveheart. We have competition I agree, I have Viterra, P&H and Richardson and 200,000 tonne worth of handling facilties within 8 miles of my farm. The Margins have been huge in the last 2 years and I would like some ownership in that. Also the farm needs there voice in the industry.

Bucket I agree 100% we don't need concrete we need loading facilties. Farmers invest in localized cleaning and conditioning facilties, moved to centralized loading hubs.

[bgmb]

Braveheart,

Grain cos buying wheat for june delivery can easily lock in a $1.00-1.50 margin. Which is more margin than most farms will make at these prices.

[bucket]

Mbratrud

Just to look back one more time. It seems some of the current elevators were not told when bring built to plan for 112 car spots.

That has to be clarified in advance so that any new points are not penalized decades later.

There are plenty of places 175 car spots could be built in a better and more efficient plan than the current model.

Graincos could easily be left in the past with a couple key locations.

Hate bringing these guys into this but the cwb completely blew the opportunity.

[grassfarmer]

"The free market is a myth. Everybody knows that. Just very few people say it. If you're in the position like I am and do business all over the world, and if I'm not smart enough to know there's no free market, I ought to be fired…..You can't have farming on a total laissez-faire system because the sellers are too weak and the buyers are too strong"

A quote from Dwayne Andreas former CEO of Archer Daniels Midland.

So if people in positions like this admit and acknowledge their unfair market advantage and even suggest you can't have farming continue on such a basis how come some farmers can't see or claim not to see any problem with a "free market"?

[fjlip]

X2 Grass, sure as hell looks like it.
"It seems against their religion for many farmers to work together." ....is the f*ing problem!
We will NEVER change, live with it or exit, only two choices.!

[CptnObvious]

fjlip, are you exasperated with the situation and giving up on changing the minds of others; or are you proudly claiming to be part of the problem?