Selling to the US without the CWB

[JD_GREEN]

ALMOY YOU STATE THAT PRODUCERS IN YOUR AREA ARE PERFECTLY HAPPY SELLING TO THE CWB AS THEY HAVE SUCH GREAT DIFFICULTY IN SELLING THEIR PULSE CROPS. WELL ALMOY I AM ONE OF THOSE PEOPLE THAT MARKETS AND SELLS PULSE CROPS AND HAVE NEVER HAD A PROBLEM MARKETING THEM. I AM ALSO A BUYER OF PULSE CROPS OWNING AND OPERATING A PROCESSING FACILITY. IF TRUTH IS KNOWN, THE REAL REASON THEY HAVE DIFFICULTY IN MARKETING THEIR PULSE CROPS IS THIS!! WHEN AN AGING POPULATION OF FARMERS HAVE BEEN TREATED LIKE MUSHROOMS IN REGARDS TO MARKETING THEIR PRODUCTS FOR DECADES, DID YOU ACTUALLY EXPECT ANY OF THEM TO BE MARKETING WIZARDS!! MOST FARMERS WOULD BE EXCELLENT MARKETERS IF THEY WERE LESS WORRIED ABOUT WHAT WAS SAID ON COFFEE ROW ABOUT MARKET CONDITIONS AND WHAT THEIR NEIGHBOR RECEIVED FOR HIS PULSE CROP. I HAVE SEEN MORE PROFITS LOST ON PULSE CROPS IN THE PAST THAN MAY VERY WELL EVER BE MADE WITH CEREAL CROPS THROUGH THE CWB. ALL A RESULT OF POOR MANAGEMENT NOT MARKET CONDITIONS.

[ianben]

Parsley
I thought my comment your CWB stinks was plain enough.
Just we made mistakes and did not see problems with a dual system.
I am just a farmer not a polititian so words and meanings may be a little confused.
I will try to explain again but this is not personnal.
You have your no cost licence and you market well beating the board price every time selling all you can produce.
Almoy sticks with the board and they still read the market badly he gets less than you and only sells 80% of his crop.
Acouple of years go by.
Almoy is getting desperate even he has had enough of the CWB.
He takes your customer and sells him all his wheat that bit cheaper than you.
Now you either sell no wheat or all your wheat for a little less than him.
You carry on till one of you go broke and the other is not far off
Just reporting what has happened with the MMB in the UK.

[ianben]

Thanks JD your post was not there when I replied.
The mushrooms dont die. They wake up.
You end up marketing with the mushrooms and they wreck the whole thing.
Lots of the mushrooms here suvived and the younger guys which the industry needs left. All about cash in the bank and the needs of a young family.

[charliep]

JD_Deere

The issues in the pulse industry revolve around the fact there are risk management tools to help the industry manage price risk in their business. The CWB manages their price risk by leaving it at the farm level until full payments are made.

The other issue is all the new entrants in the pulse processing business that are under financed (particularly given price risk they face). The grain side (and oilseeds for that matter) are mainly sold through the big grain companies with the exception of feed grains. They (to date) have been relatively financially secure (I didn't say profitable/a good investment).

As an interesting question, what would level of CWB/farm exposure be if one of the big grain companies goes broke over the coming winter?

[parsley]

Hi ianben,


Lord William Rees-Mogg wrote something interesting.....

"Markets always place the greatest pressures on the weakest holders. Indeed that is part of their virtues. They promote eficienecy by removing assets from weak hands."

Parsley

[ianben]

Hi Parsley

The law of the jungle!

Keep your claws sharp and dont get injured
Perhaps we are back to square one. Seems a pity.

Good luck out there

[TOM4CWB]

Thalpenny and the CWB...

I wrote;

"Rather call in customs agents, and send folks to jail, than respect and honour those who they were supposed to support and share burdens with!

Why is it so imposible to get the cash price that the CWB gets each day...

Unless the CWB knows this revelation will insure the CWB's death itself... "

Now if the Single desk monopoly is so great, and you know this to be true...


Give us cash prices... let us take these prices to the bank...

Or let those who would prefer to risk manage thru the pool... pool. You can contract pool sales, cherry picking is not a problem if pool sales are contracted in the same process as you do with PPO and the pooling system today.

We as farmers need to see the cash, where is it?

[parsley]

ianben,

Beneficiaries of organized compulsion find it difficult to accept the concept of "equality of opportunity" for everyone. The view is firmly based in co-operation as opposed to Equality's coercion. The view is firmly based in inclusiveness as opposed to Equality's exclusiveness.

One views the cup half full, one views the cup half empty.

One wants equality of opportunity for everyone, the other wants equality for a only a certain group.

Many describe "equality of opportunity", as a jungle where everyone needs claws, ianben. Certainly in Saskatchewan, Nettie Weibe, who was the leader of Canada's National farmers Union, publically urged the Government to jail all the farmers crossing the border without export licenses. She described them as greedy. Nettie Weibe wanted everyone to be equal, where nobody got more than anyone else. And she advocated imprisonment to enforce her point of view.


Wiebe got her wish, and 211 civil cases, and 216 criminal cases have either been completed or are still going through the court system. 427 families have been or are to be jailed and fined and coerced and intimidated because they want to market what they grow, and they want everyone else to have the equality of opportunity to do the same. These farmers do not advocate force, nor jail nor compulsion for anyone.

The beneficiaries of organized compulsion advocate equality and equality is enacted through 'civilized' force ... coercion and jail and favoritism and patronage and lies and coverups and fines

The jungle looks damn good to me

Parsley

[parsley]

tom4cwb - I think what you described looks like the producer direct sale process. Now you are starting to get it. The PDS process allows you to get a cash price from the US, but you have to put down your money in the form of the PDS to ensure you aren't undercutting the CWB's price. If you can beat the CWB's cash price in that market, you keep the differential. That is capturing the pecuniary benefit of having the single desk, so your neighbors who sell through the CWB don't have their market diminshed by your actions.

Some of the statements made here include that people don't want to get rid of the CWB, if their neighbors want it that's fine, etc. But by removing the single desk, you remove the financial advantages. Take a look at any grain company that offers a pooled price for special crops alongside cash prices. They always face the risk of unavailable supply for the pooled contracts if the price rallies.

So again, parsley and others couch their language in this never-never land of 'just give us no-cost export licenses' and everything will be the same for those who want the CWB.

It is fraudulent and misleading at best and downright conniving at worst. They know if they called this by it's true name - an open market - that it would not sell because farmers support the single desk and the benefits of price pooling. Farmers know that exactly what ianben describes is what will happen.

Tom

[JD_GREEN]

CHARLIEP

AGREE WITH YOU ONE HUNDRED PERCENT AND YES WILL BE INTERESTING TO SEE IF ANYONE GOES BROKE OVER THE COMING WINTER AND ITS RESULTS