Marketing for profit is tough

[TOM4CWB]

Flatbroke;

Sorry, I forgot, it gets worse...


Chairman Ritter said that the CWB has completed 45% of the 2002-03 sales program... this means instead that the CWB has less than 800,000 tonnes of high quality wheat to sell between now and next September... WHY has the CWB dropped offer prices by $2.00/bu, can you give me any good reason?

[TOM4CWB]

Flatbroke;

Sorry but it gets EVEN Worse!

Jan 08, 2003 (The Asian Wall Street Journal - ABIX via COMTEX) -- The Australian Bureau of Agriculture & Resource Economics (ABARE) announced its most recent wheat forecast on 2 December 2002. ABARE predicted that wheat output for the crop year ending 31 March 2003 would total 10 million tonnes. Due to the ongoing drought in Australia, this figure would represent a significant fall on the 24 million tonnes produced in the previous year.

However, figures released by a number of grain storage and receival companies since ABARE's forecast suggests that the actual figure could be 8.5 million tonnes or less. ABARE's next wheat forecast is due for release on 18 February 2003. Publication Date: 7 January 2003

Jan 08, 2003 (The Weekly Times - ABIX via COMTEX) -- Australia's milling grade wheat and pool stocks will be used as feed this year. This means that wheat exports are forecast to fall by 10 million tonnes, to 6.5 million tonnes. Carryover stocks for next season will be low. Rainfall and seasonal conditions in the first six months of 2003 will determine the fluctuations of feed wheat values. Bids of over $A300 per tonne are being received in Victoria's feed barley markets. Although stocks are tight on Australia's eastern seaboard, South and Western Australia have been supplying additional stock. Publication Date: 8 January 2003

SO FLATBROKE, the CWB basically has no high quality wheat to compete against, the Ausies won't have any more production for a whole year, and but for a small amount of US wheat that Minister Goodale is calling inferior and substandard to what we have, there is none anywhere in the world.

Can you possibly see why I have a problem with the way the CWB is selling yoours and my wheat... or do you have wheat the CWB is selling this year Flatbroke?

[TOM4CWB]

Flatbroke I take it that you are a CWB supporter as you took offence to my intellectual comment.

Being a supporter of the board, can you define to me were the preminium price for wheat is that CWB obtains for us. Explain to me in detail how anyone can say that under a pooling concept that a preminium price can be obtained.


You have got to beable to show me in figuires not just your imagination or something the wheat board is telling you to be the true. I have shown you with figuires and told you of actual events that prove that a marketing choice will return up to $2.00 more a bus. then what the CWB can do for me. But done feel sorry for me feel sorry for the value added community around us that can't buy the quality of wheat from the CWb that they want for their milling because the wheat board keeps it to fill their quality buyers orders in the export market. Thus their claim to fame of getting a preminium price, where any dam fool could get a preinium.

Maybe you can bring me up to your intellectual level of understanding.

[flatbroke]

Tom; Actually, my entire wheat crop this year fit in 1 truckload with room to spare.
kernel; Am I to assume you always hit the peak of the market with your non-board grains? If so, then good on you! Perhaps you could sell your services to the board, grain companies, or us "losers" that make up the other 98% of growers. My impression is that most anyone could extract a good price for whatever they might have in a disaster year such as this. It seems to me that all the rants I've seen thus far are all with the benefit of hindsight, such as "this was the PRO, and I saw $xyz spot price in Jerkwater yesterday." If you guys can so consistently predict the future, then you are definitely wasting your talents growing wheat! You'd be very rich traders at the WCE.

[liberty]

flatbroke,

Have a look at my posting under "CWB Premiums". Maybe you can answer the question I posed.

[flatbroke]

liberty; I think you answered your own question admirably! "...high quality wheat grown in WESTERN provinces... outside the designated area..." apples and oranges, I'd say. After reading the discussion between yourselves and almoy I've come to the conclusion the 2 sides of this can never reconcile, as it comes down to a very deep attitude difference; those that value co-operation, community, etc. and those that would sell their own mother to make an extra buck. I wish you all a good year, regardless.

[TOM4CWB]

Flatbroke;

A simple question...

I assume you accuse me as being one who would sell my mother for an extra buck...

Now on the Co-operation thing... I assume you mean those who are in the CWB "designated area" and I assume you believe the Pro-monopoly CWBers as part of the "co-operative" group.

Now I find it Ironic, that the Pro-monopoly CWBers are willing to steal many millions of dollars from all their neighbours who are asking for market choice...

So who exactly is on moral high ground here?

You grew less than one truckload of wheat this year... and you are bound and determined to control my farm that produced many many times what you could produce, and take my profit away and add it to your bank account... through the CWB monopoly.

If I had freely contracted with the CWB... under a marketing choice system... then this would have been co-operation.

But IF I choose not to offer my wheat to the CWB... and decide to study my market... take huge risk... and work very hard and long to develop my market...

Why exactly should I pay the CWB money... that you will not recieve more than a few cents from... (because your volume is so low), after all... I take all the risk of growing, handling, marketing, and getting paid for my farms blood sweat and tears...

Why exactly do you call this co-operation?

Isn't CWB monopoly marketing more like extortion rather than co-operation?

[liberty]

How is single desk selling in any way a "co-operative" venture? It relies, for its very existence, on fines and jail terms for anyone who chooses to market wheat outside the system.

Co-operation implies a voluntary exchange mechanism. There's nothing voluntary about the CWB.

If there's anyone who's willing to sell their mother to make a buck, it's the single desk advocates. They justify prison terms for unauthorized export of a harmless commodity like wheat by claiming that this is necessary to realize "premiums" for producers. It seems that they are the real money grubbers in this debate.

What's even sadder is that these premiums don't actually exist in the first place. So we have people being deprived of basic liberties in the pursuit of nothing more than a fantasy.

[liberty]

Flatbroke: you did not answer any of my questions can you tell me why.

Don't disappear from this tread because we people of market choice would like a few answers from our marketing board that we never are able to get.

Please make me a believer in the CWB with a few answers that can be backed up with some real supposely confidential evidence of premiums.

This year is more unusual that other years. Open market could extract $2.00 more per bus. Normal years open market could extract up to a $1.00 more for quality milling wheat than the CWB would.

Don't get angry at me prove me wrong inside.

[JACKFLASH]

No wonder myself and other farmers are growing more oats and canary seed,and bidding good-bye to wheat and barley.