CWB barley changes

[charliep]

Has there been any discussion on feed barley? Given different trade agreements (including NAFTA), can the CWB offer different programs for the domestic malting industry and the export market?

The maltster side by the way is they negotiate directly with you as a farmer on price. They would be willing to deduct some amount for the CWB benefit(similar to the organic program which is in the $5 to $12/tonne area) but negotiations/price must be direct between the farmer and maltster. There could still be a role for the CWB as a farm advisor (earn their $5/tonne or whatever the value). Export licences would not be a responsibility of the CWB and the maltster could sell to whoever they choose.

[TOM4CWB]

Charlie,

I believe the Ontario Wheat Growers found out in short order where a margin operator ends up... marginalised... ESPECIALLY if they don't add anything to the value chain!

Either the CWB gets on with being a valid partner in the value chain... creating value... or they had better pack up and stay in the 423 Main fortress and stop bothering us.

I can't believe these people have taken what should and could be a real real market power... that could create valid value for growers... and have squandered it.

Not one attempt to even apologize for the massive blunders on PPO's. DPC, FPC, and failing marks on pool management; prove the CWB is:

a.) Unfair in the distribution of the powers they have been given;

b.) Don't have a valid risk management system in place;

c.) Don't know how to communicate and execute a marketing plan... in a logical well managed manner;

d.) Have not figured out who they are working for... the purchaser of our grains... or the grower of the grains they have the power to control.

e.) Have squandered the "single desk" in the worst possible manner... they forced those who have the most to gain/best supporters... to loose face and confidence...

f.) Barley has been known for over a decade to be a drag and big problem for the CWB to manage... yet they continue to prove they are not in the business to create value fro grain growers... but are simply here to rub our noses in the insane theory that they can create value out of thin air... without providing anything of useful or of lasting value;

g.) If the majority of CWB Directors don't get it now... especially with barley... they never will. Goodale set up a flawed democracy... to maintain an organisation that should have had radical changes 10 years ago...

In conclusion:

There are 3 people to blame for this mess. Jean Chretien, Paul Martin, and most of all Ralph Goodale!

[parsley]

charliep,
"Export licences would not be a responsibility of the CWB" you say.


Could we have the same people who license the canola that is exported, also license the wheat that is exported?

[WheatGrower]

I have bins full of Malt barley here that I can sell to anyone of my neighboring feedlots as feed barley with no involvement from the CWB. Maybe the Maltsters should be buying "Feed Barley". Hey the CWB can use any angle or change the rules to fit the situation as they see fit. Just a thought.

[parsley]

Charlie
You raise some interesting issues regarding trade agreements:
"Given different trade agreements (including NAFTA), can the CWB offer different programs for the domestic malting industry and the export market?"

GATT allows an export 'duty, tax or other charge', but NAFTA Article 314 does not unless the 'duty, tax or other charge' is equally applied domestically.

But CWB Regulation 14.1 does not allow a fee for domestic sales, so the CWB cannot legally charge any fees for either export or domestic licences.

Hence, the CWB devised buy-backs to justify and grow their jobs. Licences are all free and the CWB gets whatever money they want.

[TOM4CWB]

Parsley,

Good observation!

We know this is EXACTLY why the Ontario Wheat Board stopped charging on export volumes of wheat from Ontario growers.

It is about time the CWB did the same.

Since the CWB has exempt own farm processing... has exempt organic from buybacks... the obvious next steps are clear.

FOLLOW in the steps of the Ontario wheat board and issue the same zero cost export licenses Ontario growers are given.

[parsley]

Tom4CWB,

Not zero cost.

Zero cost really means the price could be jacked up again tommorow, on a CWB whim.

We want :

NO BUYBACK export licenses.

The same as Ontario enjoys.

Parsley

[charliep]

Parsley

Will have to do some research on what documentation is required for non board grains to cross the border.

To the original question, the maltsters want no involvement by the CWB in transactions or reporting. Farmers can use the CWB as their agent or be involved in packaging malt barley deliveries/pooling as their broker/agent (assuming open market) but whatever deals are made have to be supported by a direct farmer contract (or at least a grain company/CWB contract so the maltster can hold someone accountable for delivery).

Perhaps the real question is how barley (including export malt and feed) will be handled on August 1. Nothing new in the CWB proposal - has been talked about for years but no action till they are cornered.

Interesting - is the malt barley proposal coming from the border of directors (i.e. approved) or is this an internal/operations side trial balloon?

[parsley]

I would presume the order comes from Deana Allen /and/or/Avis Gray.

Isn't that the source of all di rection at the CWB?

Parsley

[parsley]

If the malting industry wants to contract with farmers, then farmers must be able to bypass the buyback, the same as an Ontarian farmer does.

A no-buyback codicil should become part and parcel of the maltsters' negotiation tactics.

And every time they have a round of negotiations, up the ante...tougher and more rigid.

Rosie O and her pal will be forced to soften the CWB's position.

Parsley