Selling to the US without the CWB

[TOM4CWB]

Vader;

Ever heard the story about the CWB Monopoly being a hoax?

If the CWB had been following the CWB Act, over the past 10 years, think how much money farmers in the "designated area" would have saved on trade challenge defence funding, CWB funding to prop up the magicians monopoly that appears out of nowhere and yet creates endless strife and problems for everyone...

When are we going to respect each others property, and allow our neighbour to operate his farm, as this neighbour chooses...

Vader, are you doing your part to create a free and democratic society, or are you finding it is much easier to... to ignore personal responsibility.. to fight for a free and democtatic society that respects all citizens of Canada.

Will the CWB monopoly survive, without marketing choice, or do you believe the CWB should be dismantled if marketing choice is offered to "designated area" producers?

[Vader]

In regard to trade challenge defence spending. One lawyer said in regard to the current challenge that this challenge would arise with or without the CWB. They are challenging all things Canadian.

Do you blame them. They produce twice as much wheat as they consume and they accounted for 26% of world trade in wheat last year. When we make a sale to a miller in the USA for 10,000 bushels of wheat, that sale displaces 10,000 bushels of American farmers wheat into world markets that simply do not have the same premiums as the domestic sale would have earned for the American farmer. Of course he is going to complain to his congressman just before the election and get them firing off trade challenges against Canadian wheat. This may go on for years and years.

Defending this challenge will cost millions of dollars. Should we defend at all or should we allow the US to put a 44% tariff on wheat and simply walk away from one of our most lucrative markets?

I believe that we live in a free and democratic society, perhaps more so than the the USA considering how they honor their free trade agreement. Is this simply a question of principals or is this a question of economics.

Farmers are going broke. Will earning less money for Canadian wheat to satisfy some percieved injustice solve the problem or make it worse. If we all agree to compete with each other for world markets we can do that. The framework is in place for that to happen. You simply have to prove that it is a majority decision. And to do that you simply have to prove that you have a better mouse trap. Farmers that are going broke probably don't care about your principals. They may not even respect you if you cause them to lose revenues.

[TOM4CWB]

Vader;

You stated, "One lawyer said in regard to the current challenge that this challenge would arise with or without the CWB"...

I thought that you knew enough about Lawyers by now, that you would have understood that they will do anything to convince you that they are worth a handsome ransom, and no-one can survive without their help!

Canadian beans go into the US market, Cannary Seed, Canola Oil, Canola Meal, Flax, an endless stream of Autos, Aircraft, Hydro, Oil, Natural Gas, Steel products, Vader many industries have learnt to get along with the US.

I agree with the US on the CWB monopoly.

Why?

Cause when it suites the CWB, it does undercut the US Market.

I know, I got the CWB US subsidy check, and you know I got that check.

I have heard every argument in the book about the US, from the US being the culprits that lower international wheat prices, to the US being the premium market of the world... all in the same situation... and practical experience proved that The CWB premise that it holds up world prices is flawed… The opposite is unfortunately the truth.

It is altogether obvious that too many farmers at the CWB are too busy telling their neighbour how they should be running their farm...

Too many directors that have no real commercial interest in what decisions they make... to the point where CWB Directors are not allowed to use any PPO contracts. How Absurd.

Vader, if the CWB had known what was the prudent thing to do in marketing this summer...,

the CWB would not have been saying silly things like...

" The CWB has not sold this year's entire crop at last year's Prices. " (Update from the CWB with my long overdue 2001-02 cheque)

The CWB didn't have any wheat to sell till the first wheat was delivered August 1st, and the CWB had no business pricing any pooled wheat until that wheat was in store and available for the CWB to price.

This is the point of pooling to begin with!
Since weather is the primary driver that creates supply, which in turn determines price...

It is obvious to any really experienced marketer that grain prices are not predictable... they are a result of chaotic environmental and political events.

Now Vader, who should be responsible for making the decision about the profitability of my farm...

A CWB salesperson in Winnipeg, that almost never will talk to me, and who despises ... my very existence...

Or my business partners and myself who must pay the bills and provide the resources for many families so they can put food on the table and have a roof over their heads?

Think for a second Vader, what would be respectful and fair to my farm?

And is this not exactly what the US has been saying for the last 10 years?

[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