Please tell me - what is so bloody sacred about the CWB?

[BennyHin]

SK3: Clarification on previous post: the "Fictitious" tonnes refer to the 1000 tonnes of durum and 1000 tonnes of red spring I asked you to price out by July 31/08.

good luck.

[Fransisco]

Lets try to get this thing on track again.

***Please tell me - what is so bloody sacred about the CWB that you can't see its shortcomings?***

[chaffmeister]

wilagro: you say "not much point explaining as you wouldn't believe anything anyway"


Try me.

[Fransisco]

Benny I take it from your posts and your challenge that you think that CWB pooling strategy gives you (and everyone else) a superior return.

Is that a fair assesment of your position?

Is <b>pooling</b> what is sacred to you about the CWB?

[chaffmeister]

BennyHin:

Using the "Easy Button" to out-perform the CWB:

1. Use a non-CWB system such as the one used for canola. Price is used to attract grain into the system or to ration demand for the system. This ensure competition and lowest possible cost of doing business. You will immediately be ahead by about $20 per tonne.

2. Sell equal amounts every week - or every two weeks - or every month. Whatever. This way you will get very close to an average selling price for the year. Data shows that this alone will put you ahead of the CWB.

3. Use trailing stops when placing your selling orders in the market. If the price rises and you don't get tagged, you just keep moving your stop higher. Do this for each parcel of grain you want to sell. If the market is moving higher, accumulate them until they all get triggered at higher levels. Automatically you get better than average pricing for the year.

4. Make use of carrying charge signals in the market - to direct which delivery period you sell into. Even though you are selling equal amounts each week, they don't need to be for delivery each week. In the canola market, the price structure will often pay you to store canola a great deal more than your costs to do it. Take advantage of it.

5. When selling on a deferred basis (as in 4. above, look at selling the deferred futures first and then the basis closer to the delivery period. this will maximize the carry charges in the futures market PLUS pick up the typical seasonal basis appreciation.

If you follow these simple steps closely and diligently, I guarantee you will out-perform the CWB every time. this is because the CWB won't and/or can't do them.

[Fransisco]

Damn Chaff, that has got to break some kind of record for the most -good marketing advice- in the least amount of space ever.

Great stuff!

[TOM4CWB]

Fransisco,

Pooling IS the CWB. Pooling gives the CWB the opportuinty to get a sale, any day, any time, and be acountable to NO ONE. COmmercial Confidentiality.

And Legally any amount gained by the CWB above the "initial" payment... is pure CWB "Profit".

CWB Sales people, working a system that assures us the lowest price is the Law! HBC and Zellers would be proud! Don't you understand; High prices distort the market place, hurt value added, Supply management, Livestock Producers, the unionized worker needs cheap food!

And on top, the Industry (mainly multi-nationals by the way) gets paid by the CWB cost PLUS... a profit! No risk, the growers will gladly take the risk, and pay cost plus on top!

Benny, what wishing well have you been looking in?

[SASKFARMER3]

Benny and willgro my American Cousin if you read my post is very happy with his $9.20 for his durum and as I said the check is being deposited in the bank. So no that isn't some fictitious number that CWB supporters pretend doesn't happen its real life 1 0 1, Boys, and as far as open market prices Canola is prime example last year most of our sales happened on two days one was early january and other was in July. Hit the market their twice for excellent returns. Wheat will be know different.
So if the pooling works you keep it you seem to need it just let the rest of us out who dont want and need it.
Thats All.

[SASKFARMER3]

One more thing Benny Boy fictitious tons Ha read my post I farm so yes I have the 3265 tons of product but I believe you probably don't.

[TOM4CWB]

Adam,

I guess you consider me a CWB supporter... so I qualified to answer?

I have posted many times WHAT is needed to fix the CWB problem [Get rid of the pool/cash prices into a pool for those who must; true market signals determine price of each class and type of grain the CWB sells; with transparent disclosure of sales]...

No doubt Adam... your solution is different than mine!

[TOM4CWB]

Benny,

Your concept of marketing speaks volumes.

Ever hear of Farm Husbandry?

Part of this is being able to
make personal decisions:

a) when to plant,
b) what to plant,
c) when to harvest what,
d) and personal responsibility in making profitable sales;

That last one is ever bit as important to many of us as any one other step in Farm Husbandry.... for some even more important.

The CWB is like a mandatory government insitution telling me: when, if, and how our family can have children...; how to raise them...; and what they must do when they are grown up!

[AdamSmith]

Tom, you and I are really not that far apart in our thinking.

The only difference between our positions is, you consider the current cwb structure and cwb act as an acceptable foundation on which we can build upon.

I on the other hand believe the current structure and current act is so delapidated and full of rot that in order to move forward we need to start fresh with a new foundation.

It's called "creative destruction" And in my opinion it is exactly what needs to happen in order for this industry to move forward in fact I'm convinced it is the only thing that will work and allow us to glean meaningful results. Keeping the old structure of distrust, disharmony, and it's combative nature in place will only mean that our grain industry will forever remain dysfunctional.

Do you really believe keeping all that rot in place will lead to anything positive Tom?

Repeal the Act, close 423 Main down, get the politicos out of the grain business, establish a free market in wheat and barley, create new legislation that allows for a voluntary co-operative grain marketing entity to exist and operate and be clear to everyone that it will only survive and thrive if it can offer a meaninful and attractive service to farmers.





Creative destruction
From Wikipedia, the free encyclopedia
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Creative destruction, introduced in 1942 by the economist Joseph Schumpeter, describes the process of transformation that accompanies radical innovation. In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power.


Theory and examples
Companies that once revolutionized and dominated new industries – for example, Xerox in copiers or Polaroid in instant photography have seen their profits fall and their dominance vanish as rivals launched improved designs or cut manufacturing costs (lowering their own costs allows them to charge lower prices to customers, thereby drawing customers away from less efficient competitors who eventually close their doors or move into other products where they are able to find a cost advantage). Wal-Mart is a recent example of a company that has achieved a strong position in many markets, through its use of new inventory-management, marketing, and personnel-management techniques, using its resulting lower prices to eliminate the profitability of older or smaller companies. Just as older behemoths perceived to be juggernauts by their contemporaries (e.g., Montgomery Ward, Kmart, Sears) were eventually undone by nimbler and more innovative competitors, Wal-Mart faces the same threat. Just as the cassette tape replaced the 8-track, only to be replaced in turn by the compact disc (which is now being undercut by MP3 players), the seemingly dominant Wal-Mart may well find itself an antiquated company of the past. This is the process of creative destruction.

In fact, successful innovation is normally a source of temporary market power, eroding the profits and position of old firms, yet ultimately succumbing to the pressure of new inventions commercialised by competing entrants. Creative destruction is a powerful economic concept because it can explain many of the dynamics of industrial change: the transition from a competitive to a monopolistic market, and back again. It has been the inspiration of endogenous growth theory and also of evolutionary economics.

Creative destruction can hurt. Layoffs of workers with obsolete working skills can be one price of new innovations valued by consumers. Though a continually innovating economy generates new opportunities for workers to participate in more creative and productive enterprises (provided they can acquire the necessary skills), creative destruction can cause severe hardship in the short term.

[AdamSmith]

BennyHin wrote,

Saskfarmer3:

Since you like to measure a pool return (or fixed basis price for that matter) to a conveniently hand-picked US spot price, why don't you instead provide us with a real-time marketing plan for this year so that all of us can measure your extraordinary ability to beat a pool return every time.


Benny on my DTN in the Grains Menus there is the category Bids/Auctions
within that menus there are close to 90 North Dakota elevator locations that post their daily prices and are updated every day.

I bet if I threw two darts, one for the location and one for the date, once a month for a full year, and took the price of wheat posted at that elevator in which my dart landed on the day my other dart landed on a calender.

I could beat the cwb pooled price for wheat. That's how easy it would be to beat the cwb pooled price.

My point is the total randomness of an idiot in ND would out perform the cwb.

[Burbert]

It is our farm marketing board, evolving and changing to meet the challenges of future framers. It is currently enshrined in law, run by fram directors, backed by government money. Can't get better than that, tools. Marketing should not be run by a mob of chiseling, buttki--ers, motivated by greed, shouting everyone else down. The alternative lies in the "Open Market" duds, use it! Or move the US of A's where freedom and democracy come from the barrel of a gun. Motto, love it or leave it, applies to Comedian Framers.

[chaffmeister]

"Can't get better than that, tools."

Sure it can. you could have a system that doesn't cost you so much money - in real terms and in lost opportunities.

What part of this is lost on you Burbert?