Western Producer Editorial

[craig]

This weeks WP editorial was an attempt to cast some doubt into what impact the barley court case had on barley prices. I would hope producers are not prepared to buy their argument. While we can argue about futures fluctuations all we want, the cash price we receive for our grain is for all to see. No mention is made about the fact that when the private trade is now selling our barley, there is no longer a comfort level by domestic users of the supplies that will be available to them. The CWB at best is a residual seller of export feed barley. The board is impacted by shipping programs, malt feed barley spreads and pool returns. While it may be argued that there are merits to a more stable price structure for feed barley,it is hard to argue that the board has ever made an attempt to maximize returns to feed barley producers. The CWB made the mistake of fighting over export feed barley and the results in the market place have damaged their reputation. The editorial staff of the Western Producer may also be making a mistake in trying to defend the CWB. Producers know and understand what the court decision had on their own pocket books. Would you like $4.00 for off combine deleivery or $3 something with you waiting for your money sometime in the future.

[BennyHin]

Thank you Craig for explaining why a dual market can not exist and that the CWB cannot command a premium when others are willing to sell below their asking price in the same market.

[Fransisco]

Nice try at a quick 180 there benny. But that is not what Craig was saying.

[tower]

craig, I mentioned the impact on domestic feeders a couple of times in earlier posts. It may be argued that there are benefits to a pile of cheap grain for our cows and pigs and chickens, it might also be argued that our domestic users should try to use the market place to get returns which will cover the cost of having their domestic suppliers supply them.

As a grain grower I understand that my neighbours with livestock aren't getting good enough returns. I also understand that it isn't the grain growers responsibility. If society wants meat in the market let them pay for it, and not just all the processing and packageing and advertising in between.

Grain markets dropped on announcement that the conservatives tried to make an end run around the law, and were stopped. I expect prices might also be where they are today for other reasons. Market jitters being what they are, the idea that the board would be buying at a lower price, because of items like pool returns, was probably a great comfort to feeders and their brokers.

The old term "loss leader" describes a pricing setup that encourages customers to go into a store and buy a cheap product in the sure confidence that the customer will buy a bunch of other stuff whose price will more than cover the loss from the leader.

A gains leader then is where American multinationals have a pricing setup which encourages Canadian suppliers to buy into their system in the sure confidence that once the board is gone, those same grain companies will have another captive market willing to sell at low enough prices to cover their gains leaders.

[FarmRanger]

“Grain markets dropped on announcement that the conservatives tried to make an end run around the law, and were stopped “
---Or, without the doublespeak translation – grain markets dropped when the CWB regained monopoly buying power of barley.

“those same grain companies will have another captive market willing to sell at low enough prices to cover their gains leaders”
--- Do you mean like in the U.S., where they get more for wheat and barley than we do?

We seeded too much barley this year, but at least feedlot alley is still there to buy it, albeit at a lower price than what it would have been if the “end run” had succeeded.

[silverback]

Are you trying to say that US grain companies are just paying their farmers much higher prices right now so they can get a hold of all that "canadian" grain in some possible future date?

Pretty interesting logic. Got some specifics of that allegation? Any other industries doing that right now that you can give us examples of? How much do you suppose the "gain leader" is on a bushel of North Dakota HRS? How many years have these companies been doing this for their farmers? How long do you think they can continue to pay these premium payments on grain until they can get their hands on designated area grain?

[craig]

To Benny
If the CWB cannot operate in a dual market why does it continue to operate in a dual market environment in feed barley. Note the question asked in plebiscites asks if we want to maintain the status quo (dual Domestic market)and CWB export or allow open market. Your side should be asking for the CWB to handle all feed barley. Your side doesn't because if it was open market or all CWB controlled you know you couldn't win that vote.

[craig]

Tower Your arguments are even less compelling than those in the WP editorial. We have enough spin doctors already working at the CWB.

[Burbert]

tower, Good on you, tell it like it is. These guys/gals on angriville live in a dream world, hitting home runs all the time, clutching and grabbing every penny possible, greed drives them. Weird ideas dominate this section of the site. Real farmers, just like real men, know how to separate the bull from the chaff, just turn up the wind and watch the angrivillers whinnne and snivel. Theft of grain, injustice, comedian commies, nds, no free buybacks, freedom day, where is the 5 cents that the CWB owes us since the 30's, corruption yada, yada, yada, ho hum PC's are the best, Ralph is a great good man of vision, market choice, confiscation, bad Comedian border guards. The world is agin us boohoooooo!

[TOM4CWB]

Burbert,

GREED?

You steal my grain... and then call me greedy because I object to this confiscation at less than fair market price?

Then your buddies at the CWB sell it at the bottom of the market, blow the basis apart to tax back revenue to pad the pool... what a scam.

Take a good look in the mirror... guess what you are doing BURBERT!

[tower]

Farmranger and silverback, Gains leaders might be what's paid in the American market, or what would be paid as an incentive to get Canadian farmers to give up the board so that losses could be recouped. The multinationals must just seeth at having to deal with farmers who have some measure of control over their marketing. This would be why it was so great for them to buy up the pools.

Grain prices are also higher there because there is higher government payments for grain in export markets allowing grain prices to be higher for domestic. If either of our liberal or conservative governments over the years had what it takes to stand up to American trading practices the ratio of our costs and returns might be different for domestic grains.



Anyone have any ideas concerning where these companies have stood on the many American attempts to shut the board down?

craig, have another look at this part of my earlier post, Contrary to your opinion I can see where they are compelling.

"Craig, I mentioned the impact on domestic feeders a couple of times in earlier posts. It may be argued that there are benefits to a pile of cheap grain for our cows and pigs and chickens, it might also be argued that our domestic users should try to use the market place to get returns which will cover the cost of having their domestic suppliers supply them.

As a grain grower I understand that my neighbours with livestock aren't getting good enough returns. I also understand that it isn't the grain growers responsibility. If society wants meat in the market let them pay for it, and not just all the processing and packageing and advertising in between. "

[charliep]

Just curious how many who are posting will contract/deliver barley to the CWB. Talk is cheap but the decision about where to sell barley is really where the rubber hits the road for CWB performance.

The prices in the open market world June July were $3.50 to $3.75/bu for feed barley and $4.50 to $4.75/bu for 2 row malt (6 row half way in between). I won't put down export targets because the Canadian barley situation is tight and the CWB still cannot compete for domestic supplies. The combined malt barley and feed barley pools are likely to be less than 2 MMT in the coming year when these numbers should be 3 MMT.

The above are the targets the CWB performance should be judged by for the coming year.