Selling to the US without the CWB

[eatmorewheat]

Vader:

You are correct about US possible action on baked goods; however, CDN milling industry is already 65% US owned [ADM and Multifoods]. So no need to "shutdown" Canada's mills to fill vacant US capacity, US already contols CDN milling industry. On the contrary, some CDN mills are very well positioned to service north american markets. Open market in western Canada will bring more milling capacity to the prairies. Even if that means shutting more US capacity. Flour is cheap. Freight and wheat costs are critical to milling economics.

[eatmorewheat]

Vader:

You are correct about US possible action on baked goods; however, CDN milling industry is already 65% US owned [ADM and Multifoods]. So no need to "shutdown" Canada's mills to fill vacant US capacity, US already contols CDN milling industry. On the contrary, some CDN mills are very well positioned to service north american markets. Open market in western Canada will bring more milling capacity to the prairies. Even if that means shutting more US capacity. Flour is cheap. Freight and wheat costs are critical to milling economics.

[Vader]

Obviously 65% US ownership in our mills is no guarantee that the US will not take trade action against us. Perhaps if they had 100% ownership it might be different. Even then I think that job creation is an important factor in their protectionism and they would continue to harass us.

The only thing that will stimulate incresed milling capacity is consumer demand and a return on investment. If you don't have a business plan that attracts shareholder investment you will never see new mills constructed.

Eat more wheat!! And get 100 million more north americans to do the same and you might see more mills. No guarantee they will be in the prairies. It's a lot easier to ship raw wheat than it is to ship packaged flour, pasta, or bagels.

[TOM4CWB]

Vader;

Tell this to the Italian pasta makers who produce using CWB Durum, and ship back across the pond the finished products!

It is obvious there is more to Danish cookies and Italian Pasta... than just good Canadian wheat!

Eatmorewheat... you are creating specialty markets just like the Danes and Italians!

Keep up the good work, hope I can do a direct deal with you some day soon!

[Vader]

The Italian Pasts manufacturers buy both high and low quality durum from Canada. They have exact specifications to meet in their milling process.

Yes they manufacture pasta and ship it back to us across the pond. And they subsidize this product to maintain their market share and the jobs that go with it.

We also recieve pasta products from the US who is also using our durum wheat to blend up their quality to meet specifications.

The good news is that Canada is a net exporter of pasta products to the US in spite of the fact that they have excess milling capacity which exceeds Canada's total installed milling capacity. And the Canadian mills are doing this while paying the exact same price for durum as the American mills because the of the CWB's continental pricing policy under the Free Trade Agreement.

One last thing. Under the Free Trade Agreement, if the Canadian mills weren't getting the quality and service they needed from the CWB they could import their durum from the US

[TOM4CWB]

Vader,

Obviously Canadian mills, on average ARE getting their supplies cheaper from the CWB, or they Would at least occasionally, be arbitaging the Canadian market with US wheat supplies.

So much for extracting a premium for "designated area" wheat and barley producers, were not even allowed to create an arbitage situation for higher prices, we are thrown in Jail or fined instead!

Is this your Idea of "free trade" Vader?

[parsley]

According to Agriculture and Agri-food Canada's own Grains and Oilseeds Statistics, March 2002, Canada was a net importer of $148 Million of pasta.

Farmers need to use actual statisticsinstead of CWB propoganda.

Parsley

[TOM4CWB]

Vader;

You stated:

"The good news is that Canada is a net exporter of pasta products to the US in spite of the fact that they have excess milling capacity which exceeds Canada's total installed milling capacity. And the Canadian mills are doing this while paying the exact same price for durum as the American mills..."

You need to look to farm, on the kitchen table, written on a napkin practical experence to see through CWB PR.

Take feed wheat and barley for example... the price the CWB is determined to convince us that these products are really worth, is completely unrealistic. Yet the CWB does not sell these products for fair market value, they continue to give them away at 60-70% of market value.

If the CWB cannot be trusted in these very simple markets, how can anyone trust anything the CWB does?


You can be assured the US watches all these stupid moves the CWB makes, and adds them to the pile of political complaints against the CWB.

It goes like this:

Price discrimination... is price give away subsidies;

CWB claims they hold wheat and durum prices up in world markets... while the CWB can lower the price it offers US customers, CWB products, below US cost of sales, any day of the week, any week of the year;

CWB commercial confedentiality... is a cover up for illegal price dumping of products;

CWB refusal to allow marketing freedom...

proof the above is true!

Otherwise if the CWB was confident it was doing the best possible job...

that it did a really good job competition would be no threat...,

in fact it could be an opportunity to increase market penatration for western Canadian agricultural products...

an opportunity to grow more wheat and barley and their products not less!

Are you really surprised the US is after us? Why shouldn't they be would be a better question.

[parsley]

Vader,
You stated:
"The good news is that Canada is a net exporter of pasta products.."

AAFC statistics state :Canada was a net importer of $148 Million of pasta.

Quite a discrepancy. Can you back up your statement, Vader?

Parsley