Market Choice

[parsley]

Charliep, from the following it appears the CWB has the power to not allow the feed mill to buy your No.1 milling wheat. As a producer, you are free to sell, but if they buy, presumably they are breaking the law.




From THE CANADIAN ENCYCLOPEDIC DIGEST:

"Both the Canada Grain Act and the CWB Act contain declarations under the Constitution Act, 1867, declaring elevators in Canada to be works for the general advantage of Canada and thus subject to federal jurisdiction.
.....The declaration in the CWB Act, ...... does include feed mills........"

"Parliament has authority to prohibit a local sale of grain without permit. The fact that the regulations under the Act, which have as their purpose the orderly marketing of grain for export, prevent the use of a mill declared to be a work for the general advantage of Canada from accepting grain for local trade or for engaging in the milling or grinding of grain, cannot be reason for holding them ultra vires, although they interfere with local dealings in grain within the province."

"...it is not to be doubted that Parliament can require the managers and operators of feed mills, declared to be works for the general advantage of Canada, to fulfil the regulations made by it in respect of their operation, and can impose appropriate penalties for failure or breach."

From CWB Regulations:

"Feed grain" means
(a) ".....wheat of the grade No.3 CWRS or wheat of any equivilent or lower level of excellence, and
(b) .......feed barley of the grade Extra No. 1 Canada Western or.....lower...."

Parsley

[TOM4CWB]

Charlie;

The answer is;

If the grain remains ungraded, and is not bought according to CGC grading standards, then yes... this would only apply if the mill was not a CGC Licensed facility.

If the Mill was a CGC licensed elevator?mill, then by law the mill is required by the Canada Grain Act to grade the wheat with an official grade... and a grade that is correct and represents the lot of grain delivered.

If the CWRS is above a 3CWRS minimum protien, then they cannot by law buy it non-board for the feed market.

[les]

Feedlots are not a CGC Licensed Facility right?

[charliep]

Ianben

Just testing the limits of our system/amount of regulation involved. All farmers would deliver this grain to the highest valued market - milling wheat is not likely to get sold as feed. I am trying to think outside the box and see what happens if the system here in Canada gets tested by different theories/directions.

Thanks for everones comments. It is helpiing me with a thinking process for a project.

[TOM4CWB]

Ianben;

The CWB has a problem in the domestic market, because of their marketing mandate.

CWB Act Section "5. The Corporation is incorporated with the object of marketing in an orderly manner, in interprovincial and export trade, grain grown in Canada."

Interesting that this CWB marketing object is not limited to just the grain grown in the "designated area" but grain grown in [all of] Canada!

Interprovincial trade was in the CWB mandate, but was removed by the Sommerville vs. Regina Supreme Court Ruling... the CWB only controls domestic wheat movement that ends up being shipped outside the province... and really has no control unless the wheat/barley products are human consumption and exported outside Canada.

NAFTA seems to have had an effect as well... with no fee allowed to be charged by the CWB on interprovincial licenses for wheat and barley movement.

There seems to be a directive from the CWB Directors/fed. gov. that prevents CWB direct selling into the "non-board" domestic market... although it cannot be found in the CWB Act or Regulations.

This is sad because the domestic CDN market most years is higher than the world market for these feed grains, causing "designated area" producers to receive often less than fair market value when selling to the CWB.

[rain]

A feed mill in Alberta can buy any type of wheat. You can sell any type of wheat to a feed mill in Alberta. all you will get is the price you agrred upon. Traditionally it does not make sence to sell a #1 14.5% wheat to make livestock feed.

[ValueChainFX]

charliep:

Thank you for your questions, it is good to think outside the box more of that is needed these days. Most interested in any project that works toward the new global marketing we all face.

Keep us up to date charliep!

[charliep]

As of today with CWB diretor election results, thinking outside the box just got tougher. Marketing choice is as much about regulatory change for the grain industry in total versus the CWB mandate/single desk status. Status quo seems to be the message.

Having said that, a significant number of farm managers did vote for market choice candidates. A breakdown of farm size, age, etc would be interesting as well.

The question comes as to how you modify the current system to allow market choice. Or is it as black and white as CWB one day and completely open market the next?

Continued interesting times ahead.

[TOM4CWB]

Charlie;

I believe that Dec 15th was the beginning of the total dismantling of the CWB.

The likes of A Macklin and A Oberg are extreme left wing... and the ability for the CWB to make the needed adjustments will be more difficult than ever.

Further the appointment of A. Measner is not a positive move for fresh ideas and innovative changes that will be required to adjust the CWB to Agriculture in the 21st century.

Market choice without real AB Gov. force... is basically dead.

So the farmers who produce 35% of the wheat and barley... continue the slavery of those who produce 65%... not a good sign for the concrete terminals...

The voter turn out in Districts 1,and 5, shows the CWB is becoming more irrelevant every day...

District 7 proves that a good community leader running for choice in a district that isn't 600 miles from one end to the other... an area that is actually one reasonable climatic/production unit... can overcome CWB propaganda (of which unprecidented amounts was bestowed upon us)and work towards positive reformation of the CWB.

THe Permit Book/Ballot system is totally unfair... Multi ballots/producer and farm... farms vote in two districts in this election... and so on and so on...


WHAT A MESS.