Note the following news release this am.
Anheuser-Busch offers Canada barley contracts
By Roberta Rampton
WINNIPEG, Manitoba, Feb 11 (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) has offered a new 2008 malting barley contract spurned by Canadian maltsters and grain companies, the Canadian Wheat Board confirmed on Monday.
The brewer is the first to agree to offer farmers new "CashPlus" contracts based on sales made by the agency, which has a government-granted monopoly on western Canadian malting barley.
"The rather significant tonnage is almost full, so that would seem to indicate that farmers are eager to sign up for this program," said Maureen Fitzhenry, a CWB spokeswoman.
Canadian maltsters and grain companies have refused to participate in the program, saying it would not provide strong enough price signals to entice farmers to grow barley instead of other crops, and would be costly and cumbersome to use.
The agency hopes that will soon change, Fitzhenry said.
"We are talking right now to other companies and we do expect that more contracts will be available soon," she said.
Late on Friday, bids from Anheuser-Busch subsidiary BARI-Canada Inc. were posted on the Agri-ville.com Web site by contributors identifying themselves as farmers.
Anheuser-Busch was unable to comment on Monday.
Greg Kostal, an independent market analyst, said he recommended the contracts with Anheuser-Busch for some farmers he works with.
"The price offerings were such that ... it penciled really good for guys who are good malting barley growers," Kostal said.
The CWB's Fitzhenry said the company was offering contracts to farmers for six-row malting barley for C$335 to C$355 a tonne ($335 to $355 a tonne) basis port position in Vancouver.
Barley sales accounted for about 11 percent of the CWB's C$3.5 billion ($3.5 billion) in revenue for the year ended July 31, 2006.
Traditionally, the CWB has "pooled" all barley sales through the marketing year, which begins Aug. 1, and given participating farmers their share in a series of payments.
But that system was criticized as not giving farmers timely and accurate market signals to plant and deliver barley.
The 2008 contracts have been a flashpoint for debate about who should control the marketing of Canada's malting barley, used to make beer around the world.
The government wants to give farmers the choice of selling through the agency or directly to maltsters and grain companies, who have said they want the monopoly to end.
The government had planned to end the barley monopoly last year until a Federal Court judge ruled the move needed the approval of Parliament, where it faces political opposition.
An appeal of the court's ruling will be heard on Feb. 26.
Agriculture Minister Gerry Ritz has said he will introduce legislation to end the barley monopoly, but has said that could be stalled by a federal election, which is expected as early as mid-April.
Ritz was slated to meet with CWB directors to discuss barley marketing on Tuesday.
LINK:
* Agri-ville.com Web site ">www.agri-ville.com/cgi-bin/forums/viewTopics.cgi?CommodityMarketing
Anheuser-Busch offers Canada barley contracts
By Roberta Rampton
WINNIPEG, Manitoba, Feb 11 (Reuters) - U.S. brewer Anheuser-Busch Cos Inc (BUD.N: Quote, Profile, Research) has offered a new 2008 malting barley contract spurned by Canadian maltsters and grain companies, the Canadian Wheat Board confirmed on Monday.
The brewer is the first to agree to offer farmers new "CashPlus" contracts based on sales made by the agency, which has a government-granted monopoly on western Canadian malting barley.
"The rather significant tonnage is almost full, so that would seem to indicate that farmers are eager to sign up for this program," said Maureen Fitzhenry, a CWB spokeswoman.
Canadian maltsters and grain companies have refused to participate in the program, saying it would not provide strong enough price signals to entice farmers to grow barley instead of other crops, and would be costly and cumbersome to use.
The agency hopes that will soon change, Fitzhenry said.
"We are talking right now to other companies and we do expect that more contracts will be available soon," she said.
Late on Friday, bids from Anheuser-Busch subsidiary BARI-Canada Inc. were posted on the Agri-ville.com Web site by contributors identifying themselves as farmers.
Anheuser-Busch was unable to comment on Monday.
Greg Kostal, an independent market analyst, said he recommended the contracts with Anheuser-Busch for some farmers he works with.
"The price offerings were such that ... it penciled really good for guys who are good malting barley growers," Kostal said.
The CWB's Fitzhenry said the company was offering contracts to farmers for six-row malting barley for C$335 to C$355 a tonne ($335 to $355 a tonne) basis port position in Vancouver.
Barley sales accounted for about 11 percent of the CWB's C$3.5 billion ($3.5 billion) in revenue for the year ended July 31, 2006.
Traditionally, the CWB has "pooled" all barley sales through the marketing year, which begins Aug. 1, and given participating farmers their share in a series of payments.
But that system was criticized as not giving farmers timely and accurate market signals to plant and deliver barley.
The 2008 contracts have been a flashpoint for debate about who should control the marketing of Canada's malting barley, used to make beer around the world.
The government wants to give farmers the choice of selling through the agency or directly to maltsters and grain companies, who have said they want the monopoly to end.
The government had planned to end the barley monopoly last year until a Federal Court judge ruled the move needed the approval of Parliament, where it faces political opposition.
An appeal of the court's ruling will be heard on Feb. 26.
Agriculture Minister Gerry Ritz has said he will introduce legislation to end the barley monopoly, but has said that could be stalled by a federal election, which is expected as early as mid-April.
Ritz was slated to meet with CWB directors to discuss barley marketing on Tuesday.
LINK:
* Agri-ville.com Web site ">www.agri-ville.com/cgi-bin/forums/viewTopics.cgi?CommodityMarketing
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