Strahl to Resign?

[Fransisco]

And I forgot to mention how sinister it is that those grain companies pay up on delivery and actually take 100%delivery. None of this well we'll take 25% in a bit and then give you a partial payment on that.

[chaffmeister]

Tower – I hate to be saying you’re wrong all the time but…..afraid you’re wrong. Again.

You apparently expect <i> that at least those members of the board who are grain producers have a better understanding and appreciation of our costs and how they impact our bottom line than persons who do similar work on behalf of the multinational grain companies.</i>

Grain company merchants need to assess markets in many different ways. One very important factor in trading is understanding how farmers will respond to prices. Knowing as much as possible about total farm costs, fixed and variable costs, cost of production for each crop, break-even points, and so forth gives you a pretty good idea as to what prices will get guys to sell. <b>This is very important when trading grain because you need to know what price you’re going to have to pay.</b> I was told by a trader whom I respected a great deal: "Don't sell into a market that the farmer won't sell." This means that if the market price is where farmers aren't selling, don't sell.

The CWB sales staff does not consider cost of production in the same way because it has absolutely no impact on how it sells. It doesn’t matter to them in the least because the CWB system is not set up to allow farmers to react to price – one price fits all. The CWB will get the wheat regardless of the price because of the Single Desk.


You also said <i>Rather than expecting better from those grain companies in the future I think it would be better to do what we can about cutting our costs even at the expense of the worlds grain surplus. such as it is.</i>

Nobody’s “expecting better from those grain companies” – we’re expecting more from the system – and since the CWB represents a higher cost, getting less from the CWB would be a good thing. Less interference, less marketing, less waste, etc…

It seems you still don’t get it. Let me try one more time:
1. The CWB system costs more. Much more. (Grain companies make more on CWB wheat than on canola or flax.)
2. The CWB does not get premiums. If you “believe” it does, prove it.
3. The CWB sales performance is below average. If you “believe” its above average, prove it.
4. The CWB restricts grain movement and by extension, cash flow.
5. The CWB does not consider your cost of production when making sales.

[kamichel]

Fran you also forgot to mention that it is those same big bad grain companies that are paying those american farmers just across the border more, than the CWB is extracting supposedly using market power. And the CWB deals with them as acredited
exporters.

[Fransisco]

Good point, 80% of the barley and 50% of the wheat the board handles gets sold by those accredited exporters.

Gotta keep as many fingers in the pie as possible.

[chaffmeister]

When Measner was still CEO, he was asked by the Standing Ag Committee why they (the CWB) use Accredited Exporters.

His answer:

"It's more efficient."

So why doesn't the CWB use AE's on 100% of the business?

Why doesn't the CWB just set the price and just get out of the way?

I've got a better idea. Why not let the market set the price, let the AE's sell it and the CWB can..................