06-07 CWB annual report

[Fransisco]

Annual report is out today. You can download the whole thing here.

http://www.cwb.ca/public/en/about/investor/annual/pdf/06-07/2006-07_annual-report.pdf

[Fransisco]

On page 45 of the pdf, page 43 of the report it has a sales price comparison claiming that the board got the following more per tonne than Competitors.

Wheat – $6.00
Durum – $7.77
Designated barley – $13.45

Anybody know how they came up with this?

Charlie?
Rod? or Vader?

[Fransisco]

It's always fun to see what everyone is getting paid out of my pocket to trample on my rights.

Page 29 of the PDF, 27 of the report nicely details what the Board of Directors make.

Here are the top three.

Ritter, Ken $ 101,525
Flaman, Rod $ 52,500
Toews, William $ 51,625

The grand total $ 704,375

It's probably a good thing that I don't follow the leftie logic that people only say what they say or take the positions they take because someone is paying them to.

And its always puzzling that the folks who make those kind of arguments never look at those on their own side of the debate when it comes to money.

Cause if someone wanted to make the argument, well, like Ken Ritter has got to be the best paid one out of everybody in the whole argument.

I'm just saying.

[rbgordon]

Do those numbers include their expense accounts or are they over and above?

[furrowtickler]

Oh way over and above!
And yes I am glad someone else brought up the cwb's claim of better than the competion b/s. I know my average net return on cwb grains is way below people I know is the northern states. Maybe they are comparing the net returns of the other communist nations such as china?

[lnewman]

did anyone see 2007 professional fees under
Administrative Expenses 2006 12.2 million
2007 14.9 million It would nice to see how much of
the close to 3 million was spent on every law firm they
hired across canada preserve this so called national
treasure. newmanhttp://www.agri-ville.com/images/
forum/icon8.gif

[charliep]

Just home/haven't had a chance to go through in detail.

Accounting on producer pricing options is interesting. Have to spend more time but would appear the CWB took a $40 mln loss on the program with the current contingency fund closer to $10 mln. May explain the basis levels in the current year (2007/08)

[Fransisco]

It also has me wondering what basis levels are going to look like in a couple of weeks. I'm guessing they are going to look even worse than last year.

[chaffmeister]

First thing I went to is the two Feed barley pools.

Seems Pool B benefited from some extraordinary revenues: "Other income" of $50.17/tonne, explained this way:

"During the year, a prior claim was settled in our favour." (HUH?)

You have to dig a bit but you can find out it totaled $994,000.

Also, "Net interest earnings" of $55.61/tonne ($1.1 million)

And $50.28/tonne ($996,000) was transferred to the Contingency Fund.

Keep these "net revenues from operations" in mind when you read below:
Pool A......$187.08
Pool B......$157.63

(also remember...)
Lowest AB domestic feed price during that period......$150.00

CWB comments about the market scenario during Pool B:

"For most of the duration of the barley B pool, farmer interest in marketing feed barley supplies through the CWB was limited, as returns in the domestic market were more attractive relative to the offshore market. However, during the summer months, global feed barley values strengthened due to supply constraints in key exporting regions, including Australia and Europe.

Although pool volume was limited, the CWB's feed barley marketing strategy was to take advantage of niche marketing opportunities as they arose."

They make it sound like prices were going up, but alas, domestic prices were keeping the pool small, so they had to focus on niche markets (assuming these niche markets were giving good returns.)

Those niche markets were Japan (10,000t) and the US (10,000t).

Since when are these two considered "niche" markets?!

They make it sound like the prices were really good. But Pool B was $30/tonne BELOW Pool A (before extraordinary items not related to marketing)!

Net return from operations in Pool B was reported to be $157.63/t. That works back to central Alberta at about $104/t.

The LOWEST price in Montana during this period was $149.25/tonne and the lowest price in Alberta was $150/tonne.

So, during Pool B, taking advantage of strong offshore niche markets, the CWB, flexing its Single Desk powers, was able to sell only limited tonnage at about $45/tonne (a buck a bushel) below the lowest price in Montana.

The only way Pool B looks as good as it did (higher than the malt pool) was due to outside income and interest.

How's that wool feel covering your eyes right about now?

[Fransisco]

You mean (gasp) its not from the "marketing".

[charliep]

I find the producer more interesting as I read more. Page 60 and 61.

Durum - Durum priced using an fpc amounted to 754 tonnes/11 contracts/9 farmers - there are farmers who participate in this forum that delivered more durum than was contracted. Farmer use of EPO was about 200,000 tonnes or 5 % of the 4 MMT pool size.

Malt barley - 20,000 tonnes fpc out of a pool size of 1.85 MMT - 1 %. 400,000 epo or 22 % of pool size.

Wheat excluding durum - 3.4 MMT (2.9 MMT fpc and 500,000 tonnes dpc) out of a pool size of 15.5 MMT - 22 % pool size. EPO 800,000 tonnes or 5 % of the pool size. The wheat excluding durum programs lost $40.5 mln or about $12/tonne.

Some else can do the numbers on feed barley.

[TOM4CWB]

CHarlie,

The Barley issues are beyond comment... If Canadian Cattlemen don't get it yet... they will have to go down in flames with the CWB. I know... the CWB has been a steady ole horse... has treated them very well...

Barley acreage will drop... and if they (Livestock feeders)think they have a problem now... wait till next year!

Economics 101.

And the CWB's finger will point and blame every one else!

They Better check and see where the bottom 3 fingers on their hand point!

[charliep]

Not so sure how the livestock sector got pulled into a thread on the CWB annual report.

Note the Western Barley Growers Association convention was mostly about good opportunities for barley - it was a positive conference that dealt with more than one issue. Ethanol (yes, there is opportunity even for hulled barley), health products for an aging/health conscious society, dialogue with the livestock industry on common issues, etc.

Haven't read the annual report but will be interesting how the CWB provides their direction and comments on progress on barley marketing. Know this will open me up for a beating but the CWB does work with western grain research foundation, Canadian International Grains Institute, Grain Research Lab, Malting and Brewing Techinical Center, Alberta Barley Commission, etc.

[charliep]

Off topic (realize) but the livestock industry is recognizing the importance of participating in feed barley research. Barley has to become a more competitive/profitable crop both with other crops in western Canada and perhaps more important with US corn.

[TOM4CWB]

Charlie,

I wrote a 2 page rant... and hit 'Reset'.

You were there at the 'superpanel' at the close of Barley Convention.

Those guys had a lot of nerve telling me about the 'free market', government subsidies on biofuels... and that I owe them cheap barley.

I could read between the lines... LEAVE THE CWB ALONE.

What goes around... comes around... and this CWB annual report is not a surprise.
WHAT a LOT of LIES... the CWB has told me over the past 12 years!

The CWB managers deserve an award... for the worst managed 'single desk' on planet earth... for those who must 'wear' it!