Wheat Price Signals under Market Choice

[charliep]

Boone

Agreement that there would have to be some form of contractual arrangement/commitment to CWB or open market by farmers. I don't know about 10 years but likely would have had to have been made ahead of harvest.

Just a note Alberta is looking at a market choice environment within or along side the current CWB system (i.e industry needs to work together). The prime concern is to continue to meet customer demand requirements and allow members of the industry to plan use of resources in the most efficient manner possible. More than one way to skin this cat.

[boone]

charliep; I don't hold this up as an absolute here, just food for thought, and fairness for all, if you or anybody else thinks this is going to come about without some give and take from two entrenched camps then watch nothing happen for ten years. Find constructive points and let's hold them up to the light of day. Anything less is dreaming in technicolour. Have a good weekend guys, and chat to you next week Lord willing. boone

[TOM4CWB]

Charlie;

THe grading issue must be dealt with constructively.

The CWB has the right to use CGC grades under the Constitution... we do not.

Further, for price discovery, it may be real helpful to use US grade spec. standards... to create a base to work from.... But have these standards based in Alberta law, backed by Alberta IP and Quality Assurance Standards... but 3rd party gaurenteed by SGS who can insure international recognition and stability in quality. Even the CGC uses SGS in many International grading disputes!

Alberta needs to use the export terminal at Prince Rupert we paid for... and have it ready to implement a marketing choice plan...

[charliep]

The assumption of market choice is some level of cooperation in the industry. There has to be recognition that customers buy based on CGC grades (perhaps with clauses in the contract that add requirements for other attributes) in most off shore markets. Similarly, I don't think it would be fair to/realistic to have two completely different streams of wheat/barley in the elevator system. Whatever the Alberta government proposes has to both satisfy customer needs and be workable in the current grain handling system.

[TOM4CWB]

Charlie;

I think it will be nessasary for there to be two physical streams of grain in the system that are different.

The blending aspect of the CWB system is one of the reasons end user consumers need direct contract rights to grain I can provide them, directly from my grain bin to them...

This "IP" system is supposed to add value for my customer, therefore allowing my farm the opportunity for sales into a premium market.

I think the CGC, cookie cutter grading system, leaves value behind that needs to be addressed. ALL our cookies are not created equal, or of equal value or quality!