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What's the CWB doing to help me survive?

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    What's the CWB doing to help me survive?

    The current situation with the CWB monopoly begs the question: What will the single desk do to help me survive as a grain farmer in Western Canada over the next few years?

    We have already established, and history has proven, that the CWB is a price taker in the world market, and they cannot increase the world price and pass it on to their captive suppliers - the farmers of Western Canada.

    Well, can they then do something in terms of world market share?

    On July 17, 2000, the CWB posted a paper entitled "Special Market Report" in which they analyzed world trade in wheat and barley to the year 2008.

    These are their own conclusions:
    1. While world trade in wheat will increase 22% by 2008, the Canadian share will only increase by 3%.
    2. The Canadian share of the world wheat market will decrease from 19.5% to 16.6%.
    3. World barley trade will increase 43% by 2008, while Canadian barley trade will increase by only 8%.
    4. The Canadian share of the world barley market will decrease from 16% to 12%.
    5. Over the past few years, Canada was clearly the 2nd largest exporter of wheat in the world market. By 2008, the CWB forecasts we will be a very poor 3rd, just ahead of 4th place Australia.

    So much for all the benefits of the CWB monopoly to Western Canadian farmers.

    Their own numbers show they are not up for the challenges of the future while they selfishly will not let anyone independantly by-pass their ironclad monopoly.

    #2
    Well ceresent,

    You are right the CWB has lost its vision for a prosperous grain industry.

    And it is a good thing when we ask the hard questions!

    Jim Stanford the most credible outstanding business manager at the CWB just quit.

    I beleive the CWB knows they have a big problem, but does the leadership know how to turn it around? Jim Stanfords actions would say, doubtful.

    I really hope the CWB will take the Ontario model of responsible competition and work with it.

    There are only really four hardboiled directors at the CWB that are certain to be unreasonable, which leaves 11 that may be persuaded to come back to earth.

    Could it be that they might do the right thing for a change, and understand that Rod Flaman's election is a strong signal?

    Comment


      #3
      Does the CWB legislation have the flexibility to address the question of farmers surviving. Can the corporate mission statement of "maximizing producer returns" be supported under the existing legislation.

      The CWB lawyers have been to court defending their lack of accountability to maximize producer returns. Jake Hoeppner charged the CWB with underselling his grain. The CWB defended saying that they had no obligation to return a profit to farmers.

      Could the CWB be doing more in the way of reducing input costs? Could the CWB negotiate a bulk purchase of roundup for Canadian Farmers? Could the CWB negotiate diesel fuel prices for Canadian Farmers? Certainly it could be argued that they would have the numbers to give them this clout but it is doubtful that the existing legislation would allow for this type of thinking.

      What about on the selling end. Who has some good ideas how the CWB mandate could be changed and what could then be done to actually address the profitability of any given grain sale from the producers perspective?

      Comment


        #4
        The Canadian Grain Commision has their legislation written "in the interest of" producers. The New CWB Act could have reflected the same language, but the Minister, who is ultimately in charge, chose not to incorporate "in the interest of farmers". That says it all Vader.

        The Directors can screech and beat their tail feathers on the ground, all for show and bravado. Ultimately.... They'll do as the Minister tells them. That is what the Act legally states.
        No sense trying to stroke a bill designed by and made for government.
        Parsley

        Comment


          #5
          I want to get back to you cresent. You have asked a very good question:

          "The current situation with the CWB monopoly begs the question: What will the single desk do to help me survive as a grain farmer in Western Canada over the next few years? "

          The CWB should start to issue no-cost export licenses to farmers

          Vader asked, " Who has some good ideas how the CWB mandate
          could be changed and what could then be done to actually address the profitability of any given grain sale from the producers perspective? .

          Sell all grain FOB farm. The buyer pays for the freight and the farmers quits worrying about transportation. Period.

          You asked!
          Parsley

          Comment


            #6
            Services,

            If the CWB provides services that are less expensive and better co-ordinated than other service providers, then the CWB will florish and strengthen.

            If the CWB starts understanding that the customer who they provide service to is the farmer, and the farmer is responsible to provide the products that our grain customers need, then we just might get this whole industry back into perspective.

            If the CWB continues to believe they are Gods gift to the world, and are not responsible to each farmer in western Canada, then the CWB will self destruct!

            We need sensitive and responsive service providers that can accomidate needs, not rigid control command inflexible structures that spoil the little bit of profit that does exist!

            Can the CWB meet this challenge?

            Comment


              #7
              The CWB is governed by a majority of elected farmers. They are sensitive to farmers economic pressures. They also know that the business relationship with farmers has to present value, along with the economic bebefit of single desk selling. That's why you're seeing some modifications on the ability to take price risk and reward, and get better cash flow.

              If the Directors don't act in the way farmers think they should, farmers will turf them out.

              Tom

              Comment


                #8
                Thalpenny,
                I'll argue with you that your statement is false. Landlords are allowed a vote & landlords are not farmers.

                Thalpenny, lets correct this wrong & let farmers & only farmers elect the CWB board of directors, let's remove landlords from the voters list.

                Later..........Cam

                Comment


                  #9
                  Thalpenny and the CWB,

                  What % of Art Macklin's income comes through grain sales to the CWB?

                  Then I ask, what percentage of net income (or losses) can therefore be attributed to the CWB?

                  Same goes to all the rest of the CWB directors.

                  I understand some directors are now renting out large sections of their farms, as CWB "part time" positions have become full time jobs, by any definition that is reasonable. This is breaking the CWB Act, and the purpose of having these elected directors!

                  I know just watching and working with you CWB guys has become a full time job for me personally!

                  The board of directors are so out of kilter and misdirected that they make it against the law to use the Producer Payment Options themselves!

                  When will they force directors to put their grain farms in blind trusts, so they won’t have any conflict of interest at all?

                  How can directors actually feel and know what CWB programs do to a farm when they can't even use them for themselves?

                  Learn by doing is obviously why the CWB elected directors, by statute, are supposed to be grain producers who sell wheat and barley through the CWB.

                  The whole elected director process has become a farce, as the directors as a whole don’t even understand why they are in Winnipeg!

                  Isn't it time for the directors to do some soul searching and make some changes at the CWB?

                  Taking the Oath of allegiance to the CWB pooling accounts, (the Code of Conduct) was never part of the CWB Act, but the CWB Lawyers and Staff are about to try to make it part now!

                  How absurd do things at the CWB have to become, before the CWB understands what they are doing is wrong?

                  Comment

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