CWB barley changes

[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

[parsley]

One thing to beware....

Since David Orchard will most likely be setting CWB/Liberal policy, now that it looks like he has edged Goodale out of decision-making position, the Maltster negotiators have to beware Orchard attending the negotiations, and chaining himself to the maltsters attending, complete with lock and key.

The Maltsters might negotiate away ANY concession.

Parsley

[just_wondering]

Erik
how will this new system ensure that
a) Maltsters can still attract malt when spot feed prices are high, and it is all about planning cashflow and space.
b)Will it be all domestic and on farm storage and selection?
c) Will the elevators and farmer owned terminals be involved to source supplies?
Is the CWB's sole funtion to dollar cost average, they have more information so they should long term be able to make better sales?
or is all about saving the empire and per diems?

[charliep]

Parsley

I don't read buyback in either of the proposals. The CWB proposal reads to me like a separate pooling system for the domestic industry with the CWB able to be more aggressive on initial based on actual sales and the ability to run more pricing pools. The issue is the CWB proposal still includes elements of price pooling combined with the ability to down load delivery risk on farmers who sign these contracts (i.e. prevent what happened this past spring with the CWB shorting the market). This is one area I would be very carefull of in the CWB proposal and one of the reasons MIAC is opposed to the program.

Good, bad or indifferent, the CWB barley programs are likely to look a lot like what is being offered the organic industry (unless of course there is a change to the act, the July 31 court decision is reversed or the CWB voluntarily backs away from barley).

[charliep]

Actually the Western Producer describes the program below.

The CashPlus program will involve three transactions:

-The CWB negotiates sales directly with buyers.

-The board sets a cash price based on market conditions.

-Maltsters and farmers negotiate contracts among themselves.

[charliep]

Some who are participating here may be very familiar with the CW B organic program but other may not. Here is the link for those that want more information. Relatest to barley as may be a model for the what could happen under a CWB single desk.

http://www.cwb.ca/public/en/farmers/organic/

[charliep]

JW
good questions, perhaps Charlie can add some assistance here too.
Like pricing canola you'd be the one taking the price that is acceptable to your operation. So if you agree to contract barley at $5 bu in April, and come Nov its 5.25 at your local feeder well that can happen. The Maltsters will be forward pricing, trying to ( in my mind) ensure a premium over feed. Like your canola, you agreed to a price. With direct contracting, then the contracts are valid, unlike signing a current CWB malt contract.
As to all domestic and on farm storage? not sure. New proposal has the CWB handling export malt themselves with no change to the system. This changes only affect domestic malt - Right Charlie?
Believe the CWB will still be going to the line companies for the export malt. Some companies do have agreements with domestic maltsters so the new system would work there. For those that are within easy trucking distance to maltsters, the one on one relationship would work.
Can the CWB extract premiums from the international market place? that is the $64,000 question. I don't think so, by averaging it, you don't see the premium, there is no transparency in pooling. No advantage to the producer at all. By being the middle man they are saving jobs, and lord knows that!
I still question that if they have the expertise in those offices, then why can't they compete in an open market and earn my business. They don't need assets, they can work just as the brokers I deal with in feed wht/bly do. Yet that might mean job losses - OH WELL!!!
Erik

[cropduster]

Erik.......AND we should SEE the premiums they(CWB) get for us...RIGHT??NOT unlike the PREMIUMS we are getting now!!!My feeling is the `PREMIUM` we are getting now is a SHAFT up the sphincter!!!!!!!!!

[TOM4CWB]

Erik,

The "single desk" is a simple cop out.

It is a license to take barley without the obligation to be transparent or accountable.

Until this is resolved... marketing with the CWB as a "partner" will not improve.

Ontario wheat growers made the transition, as did the ABB in Ausieland and even the AWB must now pull up their socks and provide competitive transparent prices.

It is time the CWB was woke up of their slumber party...

The world has changed every where else but here?

In the real world... If you burn the bread too many times... you get to watch someone else make the toast!

Why should our marketing service provider get a; pass, free ride, and never show any initiative to provide better services?

If the CWB were to provide a decent "Act of God" clause... that would provide integrity to a marketing system for both growers and consumers... a decent marketing option if quality does not make the grade...

If the CWB can't innovate and make this work this year... with the strength of the corn market...

Good grief!

[charliep]

Am working to get an explanation of the programs directly from the CWB so will leave some of the questions. It is not direct price negotiation between a farmer and a maltster (or maybe exporter as well - the western producer article leaves some doubt in my mind).

The program does not deal with the delivery terms/selection specifications either. Will note from feedback on the focus group work in November (Camrose and Drumheller) this remains a major contention for farmers but the proposals in no way deal with these issues (except for maybe downloading more of this risk on farmers when you sign a contract). The delivery timing and selection/rejection terms will have to be dealt with using a process like the proposed cash clearing house (clearer definition of delivery terms and quality combined with an outside party to provide dispute resolution). To be clear, these problems exist today and are outside the current discussion about CWB/open market pricing issues.

[Burbert]

Here's a novel idea*** Lets turn over our barley marketing, to the brainiacs here on Angriville. These Duds are great, they knowitall, are getting filthy rich at the expense of us other framers. Let them spread the wealth around, and help us out. Being the great loveable group that they are, acting as our brokers, we'll either be broke or or converted. Me,me,me, thats the way it should be, to h--l with the rest! Men of tru genius, legends in their own minds. Chieslers, and cheapskates are plentiful in framing gimme, gimme, gimme, more than my fair share, lets all whine and snivel at the same time.........