Jensend,
You said;
"what did we get for malt barley sold to china? seems to me that was a market of last resort and not very lucrative."
I well remember app. 10 years ago... the comments being made... you recite now.
I also recall folks from Alberta finding out that malt barley was being sold at around $10/bu US in China... when they were on sales trips there selling special crops.
The CWB was returning $3.50 for the highest quality product on the planet to the farm gate. They begged him to try to sell barley outside the CWB... to try to short circuit CWB jaw breaking discounts that disrupted their markets.
Markets are driven by perception...
1.) COst is King... in driving pricing... and the CWB has no cost base to drive the market higher! 60% of nearby market value is not a cost base... it is a gift. (Perspective would say it is a theft)
2.) What incentive is there to do the extra work, sweat and grind the buyer... when there is no financial incentive for salespeople to drive the price higher!
3.) The true value potential of a marketing system can only be achieved... if all participants are voluntary... especially on the supply side.
Any " grain buyer " could have bought their grain supply from some other marketer than the CWB... any time... and the CWB is all too aware of this fact!
You said;
"what did we get for malt barley sold to china? seems to me that was a market of last resort and not very lucrative."
I well remember app. 10 years ago... the comments being made... you recite now.
I also recall folks from Alberta finding out that malt barley was being sold at around $10/bu US in China... when they were on sales trips there selling special crops.
The CWB was returning $3.50 for the highest quality product on the planet to the farm gate. They begged him to try to sell barley outside the CWB... to try to short circuit CWB jaw breaking discounts that disrupted their markets.
Markets are driven by perception...
1.) COst is King... in driving pricing... and the CWB has no cost base to drive the market higher! 60% of nearby market value is not a cost base... it is a gift. (Perspective would say it is a theft)
2.) What incentive is there to do the extra work, sweat and grind the buyer... when there is no financial incentive for salespeople to drive the price higher!
3.) The true value potential of a marketing system can only be achieved... if all participants are voluntary... especially on the supply side.
Any " grain buyer " could have bought their grain supply from some other marketer than the CWB... any time... and the CWB is all too aware of this fact!
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