CWB premiums

[TOM4CWB]

Ianben;

1. THE Canadian Grain Commission is responsible for grading and the quality of Canadian grain, not the CWB.

2. The CWB has no right in law to market grain it does not own, yet it presumes to take this station without jurisdiction to do so. I have no problem with the CWB pre-pricing my wheat, if the CWB has a contract with me (or someone else) to secure a supply, otherwise the CWB is far beyond the "Ordery Marketing" objective the CWB Act sets for CWB Marketing functions.

3. The CWB has no ability whatsoever to control the supply of grain grown that they must market, other than to give very low future market outlook prices... that would or could discourage planting of CWB crops. However... the forcast of unjustified low priceing forcasts then creates a credibiltiy problem for the CWB, disrupts our Crop Insurance programs, and is not ethical to begin with...

I am afraid the "benefits" that you place at the CWB's feet, are not created by the CWB, rather are the product of hard work by farmers and the grain handling system in Canada.


The CWB is a great field leveler, and this lack of transparency covers a multitude of problems and solutions with but one answer...

Having one single monoplistic entity make marketing decisions for everyone in the "Designated Area"... cannot and will not respect the needs and aspirations of all but a very few it is supposed to be serving.

Sadly, the CWB believes it is in charge of everything, but refuses to be responsible for anything.

[Lifer]

Ianben

With clearer market signals I believe supply can more easily adjust to demand. I'm not excited about having to regulate this.

The CWB has a greater chance of putting a guarantee on quality then any one farm as long as western growers will continue to grow into this system.

This guarantee of the best grain from a region can be achieved through production contracts spread over a large enough area.

We need a better deal for farmers absolutely. If we continue to play this game of trying to run everybody's farm we are going to lose wheat growers. We need to work to get better market signals on wheat to us so we can make decisions for our own family and farm.

By connecting growers more closely with end customers we will know more what they need and we should be able to provide more service. Part of this is clearer price signals. Improving on the Pool Return Outlook (PRO)and Early Payment Option (EPO) would help.

[TOM4CWB]

Lifer;

Good Points!

Added to the point on supplying what our customer needs through a closer relationship... is the "value added" factor.

What do I mean?

If I supply a more valuble product, that adds value to the consumer and end-user, then I should both have a more loyal customer and receive more value for the product I produce.

The CWB pooling of everything, especially in our domestic human consumption markets, stops this from happening most of the time.

Further, If the CWB claims to get more from the domestic North American market, and less from most of the rest of the world markets, they fall into the trap of subsidising sales into the rest of the world market from our domestic markets. This has been ruled by the WTO to be illegal.

WHether we like it or not, "price discrimination" by STE confiscation to distort the market will change CWB selling practices over time... I sure hope the CWB is preparing for the day that the monopoly disappears, because it certainly appears it will.

THe CWB is setting itself up for being dismantled... by claiming it cannot operate in a market where competition exists!

[ianben]

I can see the diadvantages of the CWB andthink a way should be found to allow inidviduals to optout.
However I do not see the opertunities for adding value you imagine materializing in the freer market I enjoy.
Garenteeing supply of quality and quantity even by a group of individuals is a problem for producers and fixing a price can be a problem for buyers if cicumstances mean their competitors gain an edge.
Regulating supply was perhaps the wrong word. I do not seeek to fix quotas or have any mandatory system.
I just want farmers to monitor each others production and costs and market in a more orderly way. Ukraine may be able to produce wheat at 15$/tonne but they only produce 21million tonnes an insignificant amount in world terms.
We desparatly need abody to advise us on customer requirements and supply avaiability. To give guidance on price and quantities to sell or store in order to maintain steady prices and continued supply.
The basic service every customer demands and deserves.

Can individual farmers or the even CWB provide this basic service year on year?

Would you buy a combine with out spares or service backup?
Do you willingly accept huge price hikes without trying different supplyers?

Our future as family farmers lies in providing a 21st Century sevice to our customers not on the survival or not of the CWB.

Can we come up with the goods?

[ianben]

Sounds like I missed something in the marketing choice sonero. I would assume that if an individual farmer had freedom of choice wouldn't that freedom extend to grain handling companies.

Grain handlers already have the management to market all of our grain why would we exclude them from freedom. The CWB uses many companies now to market our grain world wide. Grain companies can retain quality of our product now why would that change under marketing choice.

Just let the free market roll, if we can grow quality it will be marketed that way, bought and sold for a premium.

When the CWB and the AWB have the monopoly on 40% the world wheat export market and the world knows it can buy it for less than the world price. What does that do for producers everywhere in the world. It holds the price of wheat down. Think about it. If a large quanity of wheat is held out of the world pricing mechanism and priced at a we won't be under sold attitude. That will keep the price of wheat down world wide. It acts as a subsidity to the consumer.

No wonder the USA farmers are upset with Canada and Austrailia. Little wonder why Europe and USA subsidize their farmers.

[ianben]

Kernal I know you are a supporter of gpo.
Basically the body I imagine would give farmers advise on sensible realizable prices to offer their comodities using this type of option.
Using modern technology and avaiable data a price and availability for every location in the world could be available at the click of a mouse.
We could then use this information to plan our sales and production through the existing marketing bodies.
I just feel we are silly to let a few extra tonnes in one place crash prices worldwide.
I am sure most of you wish you had saved a few tonnes from a bumper year to sell in your drought year.
We are encouraged to react to market signals but I cannot find out wether FSU wheat is two year blip or a fact I have to live with.
I cannot compete on price today but my customers can easily afford to pay more if supply fails.
Do I continue to grow wheat or could FSU
realize they could charge more?

[plato]

I dont think the wheat board debate will continue much longer since Russia and the Ukraine Have started exporting wheat.
They will continue to increase exports each year at a lower production cost than we can produce it on the praries . This will be the last nail in the coffin of the CWB as wheat will no longer be grown in large quntities in western canada. the future marketing of wheat will be done on a contract basis through various grain companies or private grain terminals for specialty wheats into niche markets. We may even find ourselves making a profit on wheat again.

[dnach]

Good point plato, it is just a matter of time. The same thing is going to happen to U.S. soybean farmers within a few short years. Farmers in North America can no longer afford to produce high quality grain and ship it half way accross the world to people who can hardly pay attention let alone pay for high quality food. Let the FSU and Brazil serve those markets and yes niche markets will be a mainstay here in Canada, as long as the cwb keeps it's nose out of it.

[ianben]

Why do you guy think Brazil and FSU will leave you the high profit niche markets?

Thats were the competition will be I think.

Everyone wants the customer who pays cash dollars!!!!!

Dont they??