Western Producer Editorial

[tower]

Gains leaders are used regularily in business, in the case of a continuing effort to accumulate more control of the marketplace companies will often pay more for stock of a competitor with the intent of removing the competition. It isn't always about the dollar value of the trade at the present time. Grain companies for example are not just buyers, and not just sellers. They make their money on the service they provide to society whilke the grain is in their hands.

It doesn't matter particularily then to them where the price is because their markup covers them. At his point the problem is that some portion of the market is not in their control. Not that many years ago, I think during Reagons presidency the US of A declared that food is a weapon of war... It seems evident to me that a decreasing number of companies are trying to gain control of the power involved in that.

About a quarter of my crop this year will be in barley, all feed.

[tower]

Whether the cwb is restricting the value of feed grain in Canada has been discussed on here quite a bit. Looking at the board Act successive liberal and conservative governments have placed quite an onus on the board to assist the value added industry. Livestock might be considered a value adding industry.

I found no specific mention of livestock but if governments have appointed directors and farmers have elected feeders to the board, I expect that would have an impact on interpretation of such a regulation.

[tower]

With respect to the notion that a supporter of the board should necessarily be selling all production through the board, I for one don't.

I agree with the concept of conservation of resources. If it ain't broke don't fix it and if it ain't trash don't junk it. The board needs fixing but it is better than some of the junk out there so I figure it's fixable.

[chaffmeister]

So the CWB needs fixin'.

<b>How would you fix it, Tower?</b>

[TOM4CWB]

Tower,

If the CWB WERE to extract a premium and maximise our returns as grain farmeres in the "Designated Area" it would indeed mess up the value added sector.

This is why marketing must be competitive and allow growers/farmers to find their own equilibrium on value... cattle/hog growers need the opportunity to bid for my growing acres... as do special crops consumers, human consumption produce, oilseed processors... no one sector should be allowed special status or it distorts all sectors.

Pools simply prevent arbitage of the markets... WHEN CASH MARKETS are not allowed to co-exist along with the pooling system. Dry Bean marketing works in this dual system... in Alberta the pooling system is the marketing option of choice... yet growers of dry beans could choose another option if those managing the pool ripped them off.

This is market discipline... and we don't have it as the CWB exists today.

Will the CWB honestly operate a competitive cash pricing system along side the pools thsy now operate?

Only if they change the system to a cash bid... grower based sales system. GROWERS must make the decision of when to release stocks and make sales... not the CWB sales dept. When we finally get this problem ironed out... it would be possible to rebuild the CWB.

If the CWB is allowed to operate as it does today for an extended period... it will destroy itself with a slow and bitter struggle as it burns out grain growers till in the end through WTO type interventions it is finally dismantled.

[parsley]

.....but unfortunately, if the CWB warble is allowed to suck along, as it is accustomed to, those farm children, with agricultural skills oozing out of their genes, are bound to kick up their heels, and move on to greener pastures.

Parsley