CWB meeting

[lesm]

Went to a CWB meeting last night and it was quite a lively debate. I have to give McCreary alot of credit, because he handled alot of difficult questions, however the answers were all the same old crap. Some of the old timers were pretty upset with us as to how dare we question the Gods of the beloved CWB. These guys didn't have a clue about basis , contingency funds, export permits or anything McCreary was questioned about about. My dad used to say these same guys would take a load of grain to the Sask Wheat Pool, deposit their cheque at the Credit Union, stop at the Co-op to buy groceries and go home and pray to Tommy Douglas. WOW! What a great Socialist day. These people must have a low self esteem that they want and need a government to run their lives. I think it would be easier to convert a terrorist. Anyways, screw the CWB!

[charliep]

Attended legal district meeting yesterday. Lots of good questions but no real confrontations.

My ah has were:

1) Should have put first but the level of use of the producer pricing options.

2) Supply chain transformation project. CWB has worked through a process of looking at alternatives to improve supply chain efficiency.

3) Programs the CWB is considering introducing in 2008/09 (cash buying barley, year round cash pricing, defined delivery contracts) and 2009/10 (locked in class/grade/protein spreads for FPC based on PROs).

[bduke]

Charlie....Ken Beswick,then a CWB commissioner, developed a cash plan for barley, year round etc., about 13 years ago. He was prepared to present this proposition to the WGMP in Winnipeg. The night prior to his sceduled appointment the CWB phones lit up...commissioners,advisors,senior staff....and Lorne Hehn, chief commissioner, pulled his proposal. Ken appeared before the committee completely demoralized, with nothing new to offer,and subsequently resigned.
Unfortunately Ken died much too early in life...from an aneurysm I think...but he new many years ago the CWB handles barley very poorly. Imagine, in 2008 the tinkering continues....Bill

[bduke]

Charlie....Ken Beswick,then a CWB commissioner, developed a cash plan for barley, year round etc., about 13 years ago. He was prepared to present this proposition to the WGMP in Winnipeg. The night prior to his sceduled appointment the CWB phones lit up...commissioners,advisors,senior staff....and Lorne Hehn, chief commissioner, pulled his proposal. Ken appeared before the committee completely demoralized, with nothing new to offer,and subsequently resigned.
Unfortunately Ken died much too early in life...from a brain tumor I think...but he new many years ago the CWB handles barley very poorly. Imagine, in 2008 the tinkering continues....Bill

[bduke]

sorry for the double post....tied a correction....re: Ken...my recall is saying brain tumor....Bill

[TOM4CWB]

bduke,

The genie is out of the bottle...

13 years of inaction has lost the CWB much good will. Using a PRO base price for PPO's is absurd.

The CWB must market through a fair cash price offering on all grains they handle... NOT JUST BARLEY.

[charliep]

Bill

You are right on feed barley. Not a new idea. Have at different points had effectively cash marketing through the CWB already (zero cost EPO's, etc). The open market program and the subsequent acting on these programs worked pretty well this summer (realizing the CWB and grain companies had pre-negotiated what they would do if the CWB retained single desk August 1, 2007).

Asked about why no guaranteed delivery contracts for feed barley and got the expected answer of no opportunity in current world feed barley market. I would hope in the new world the CWB would have a daily price and let farmers decide whether they want to deliver. Maybe that would mean the CWB would tender at port and let grain companies source for them. Off topic.

The other discussion was the impact of volatility on CWB hedging activities/basis. Very interesting to see a chart of daily price swings.

[bluefargo]

I too attended the CWB meeting in PA last night. I agree with a lot that LESM had to say. Ian McCreary did perform pretty well and I must confess to coming away with a little more sympathy with the CWB point of view. Almost regretted the grumpy email I sent Ian last year.

The meeting confirmed what I felt before going. The governments handling of the barley issue has been very hamhanded. Ofcourse this is with the benefit of hind sight. But the fact is that regardless of what side of this issue you are on, farmers are collateral damage in this war. A truce has to be called before these record pricing opportunities disappear for good.

[bluefargo]

Just one other thing on the meeting at PA. One reason I went was to see the famous Rod Flaman in person. He was listed on the flyer but wasn,t there as far as I know.