Poll of the day

[padron]

Thanks Chaffy,

Strikes me as an inordinate amount of the Press Release dedicated to this one issue - they must be expecting trouble from the CWB. Where would they get an idea like that?

So much has to happen before we even get into "dispute territory" such as new CWB barley protocols, handling agreements, inventory financing, etc., etc.

The CWB still refuse to enter into discussions around an operational plan in an open market environment. Feels more and more like they will just throw their hands up and get out of the barley market - which isn't a bad thing entirely but does leave those who prefer pooled marketing without that option.

I still believe they can offer an alternative for those who want it and I find it disappointing that they don't appear interested in developing this on behalf of the farmer constituency. It's either "our way" or the "highway" seems to be their motto!

[parsley]

Media Release
For Immediate Release: March 4, 2008

Wheat Growers Look Forward to Higher Prices
Under a Free Market

The Western Canadian Wheat Growers are pleased to see the federal government has introduced legislation yesterday that will harmonize barley marketing regulations across the country.

"Once passed, this legislation will give us the same marketing freedom that all other Canadian barley growers take for granted," says Cherilyn Jolly-Nagel, President of the Wheat Growers. "It's our grain and we should be free to sell it to a buyer of our choice."

The Wheat Growers are calling on all political parties to respect the wishes of western farmers and ensure Bill C-46 is passed in this Parliamentary session.

"Giving us a free market will allow us to take advantage of strong prices for malt and feed barley," says Gerrid Gust, director of the Wheat Growers. "Our farm would see more acres of barley planted if I knew I could count on accessing these higher prices."

Forward contracts for malt barley were being offered for over $9.00 per bushel in U.S. markets last week. In contrast, the Canadian Wheat Board is projecting a price of $6.45 per bushel, basis Saskatchewan, for malt barley in the next marketing season.

The Wheat Growers will be recommending the legislation be passed as is, with a confidence motion if necessary, so as to allow for speedy passage of the Bill. We will continue to strongly push for marketing freedom for wheat. Ontario wheat farmers are currently enjoying unfettered access to record high prices while western Canadian farmers are stuck with the comparatively poor returns being offered by the CWB. The magnitude of these losses demands immediate attention.

"Farmers want the freedom to market our own grain," says Gust who spoke at the freedom rally on the steps of the Saskatchewan legislature last Friday. "The grain I grow on my farm is my property and I should have the right to sell it to any buyer, including the Canadian Wheat Board."

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For further comment, please contact:

Cherilyn Jolly-Nagel
President
(306) 354-2517


Gerrid Gust
Director
(306) 567-2152

[parsley]

Looks like the WCWGA climbed the Scaredy-Cat Pole of the Day, scared to death of making any wheat marketing noise.

Parsley

[just_wondering]

Parsley
post the top of the release the Pre- amble

[padron]

Looks like the CWB doesn't like the conflict resolution clause so it must be a good thing.

Arbitration could cost farmers "tens of millions": CWB

FBC staff
3/4/2008 5:38:00 PM
A proposed federal bill that would compel the Canadian Wheat Board into arbitration over its grain handling agreements could cost farmers "tens of millions" of dollars per year, the CWB said Tuesday.
"This legislation would essentially take money from farmers and hand it over to the grain companies," said CWB chief operating officer Ward Weisensel in a release, referring to amendments to the CWB Act introduced by the government Monday.
"The CWB currently negotiates supply-chain agreements with the goal of maximizing farmer returns. This power would be greatly reduced."
The bill is also unnecessary, he said, since grain companies can already arbitrate disputes with the CWB in court or through the federal Competition Bureau.
This provision "would actually give grain companies more freedom to increase their profits at farmers' expense," the CWB said.
The government on Monday said this amendment "would encourage producers and grain elevator companies to pursue the option of commercial arbitration, with the CWB, instead of resorting to the court system, which can be lengthy and costly."
The amendment, which still must get past a vote in the House of Commons, specifies that the CWB could not "unreasonably withhold consent" to go to arbitration with farmers or grain companies. It would apply only to the CWB's "commercial behaviour" and not any decisions the board is authorized to make under the CWB Act, the government said.
The bill's other amendment to the CWB Act proposes to grant the federal Cabinet power to amend or repeal any regulation created by the Act's section 47.1 -- the section that now requires the government to consult with the CWB board of directors and hold a producer vote before excluding any type of wheat or barley from the CWB's single desk.
Citing quotations from Agriculture Minister Gerry Ritz in recent weeks, CWB chairman Ken Ritter in the same release said the federal government's rhetoric has recently changed from insistence on a "strong and viable CWB" to descriptions of the organization as a "bad dream" that will "blow away" or be hit by an "avalanche."
"There is little remaining doubt that the federal government intends to dismantle an organization that has long played an invaluable role on behalf of western Canadian farmers," he said.

[chaffmeister]

This blows me away.

Dispute resolution or arbitration is so widely accepted that arbitration facilities are provided by all trade associations and exchanges as well as found in most governing trade rules (such as GAFTA).

That the CWB is being forced and it's resisting should tell you a lot about its approach to commercial business. If it had an honest, upfront approach to disputes, they would embrace arbitration. In fact, if the CWB was know to play nicely with the others in the sandbox, the legislation wouldn't be needed in the first place.

[parsley]

BARLEY SET TO GROW ONCE BILL C- 46 IS PASSED IN PARLIAMENT



March 5, 2008, Airdrie, AB: Western Barley Growers Association (WBGA) believes that once the Canadian Wheat Board's (CWB) monopoly on barley has been removed, we will see greater growth in the production of malt barley in western Canada. WBGA estimates the malt barley market (export and domestic) could grow to four million metric tonnes from the current two million metric tonnes.



Recently at WBGA’s annual convention in Calgary, delegates and guests heard from two accredited malt barley experts, and they have echoed the growth potential for Canada that is well known within the barley marketing world.

"John De Pape is an owner of Integrated Malt Barley Management Ltd., a firm specializing in international malt barley markets. De Pape says that the Canadian market could grow substantially to meet an increasing world-wide malt barley demand" states Jeff Nielsen, President WBGA.

"We have practically everything that's needed right here in Western Canada - the agronomics, consistently high quality barley, water, labour and land. Many global maltsters have indicated they would gladly build new malting capacity in Western Canada if we had an open market. So all we need now is the right policy environment to complete the circle."

"De Pape also told the WBGA that China is experiencing around 14 per cent annual growth in its imported malt barley demand and there is no reason why Canada shouldn't be able to increase its share of this growing market. However, we need a marketing system that efficiently provides the right market signals so that we can take advantage of these market opportunities as they arise" continues Nielsen.



De Pape is quoted saying "Unfortunately, the CWB is often unable to take advantage of emerging export business due to its inability to increase farmer deliveries."

De Pape's comments come after Tim Stonehouse, Malt Sales Director for the UK's Munton's Malt, stated in his presentation to WBGA's convention, his estimates about global barley growth. Stonehouse said that the world needs 500,000 MT of new malting capacity each year for the foreseeable future. He said that Canada is the only country in the world that can meet this demand because of our land base and climate.

However, he warned that government interference of any kind, including trade distorting policies and marketing agencies such as the CWB, will thwart the development of the industry. He stressed that farmers need clear price signals from the entire barley chain to properly grow this industry.

Nielsen urges all of Canada's Members of Parliament to support the barley legislation that was introduced this week in the House of Commons and has sent letters to the leaders of the opposition parties asking for their support.

"This legislation is good for farmers, it's good for the malt and brewing industry in central Canada, and it is good for Canada's economy."



WBGA thanks Minister Ritz and our government for their commitment to choice. As stated in last fall’s Throne speech, "Our government will recognize the views of farmers, as expressed in the recent plebiscite on barley, by enacting marketing choice".





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For more information contact:





Jeff Nielsen

President ~ WBGA

Olds, AB

Cell: 403.556.0408

jeffniel@platinum.ca

END OF QUOTE


Talk about making a silk purse out of a sow's ear.

Schloorsch!

Parsley