It's a world market for Biofuels too

[TOM4CWB]

Ianben;

You are right for sure!

We must concentrate on value added... which leaves a great deal of uncertainty with the CWB... as crossovers into non-feed uses is quite extensive.

Only feed wheat/bly for livestock use is specifically exempt domestically from the CWB "single desk monopoly" which leaves many of us with a very bad taste in our mouths... about being blind sided after spending $$$Millions and finding out after commitments and contracts are in place.

Vader;
Can the CWB request a change to the CWB act to allow value added processing of new innovative projects non-board outside the "single desk monopoly?

Or

Are we supposed to just trust the CWB... after reading the fine print of the CWB act... and finding we are NOT exempt from the "single desk monopoly"!

If we are exempt from the "single desk monopoly" where can you point to the exemption specifically in the CWB Act?

Since I have studied it... the words "Human Consumption" are not even in the CWB Act or Regulations... how can you claim biofuel/products are exempt when they are consumed by humans and not animals?

[Vader]

I can only refer you to what is in practice today. API in Red Deer, AB diverts a portion of its fractionation products into the "human consumption" market. As such they are obligated to purchase that same percentage of their raw material from the CWB. For the balance of their "non-food" production they are free to purchase wheat directly from farmers.

I think that you are correct in that the words "non-human" consumption do not appear in the CWB act but for quite some time now that has been the operating principal.

I inquired specifically about ethanol and was told that the best interpretation is that ethanol is not a "wheat product" as defined in the CWB Act and therefore is not subject to the conditions of the Act either. If you do fractionation and the gluten or the wheat germ find their way into either the domestic human consumption market or into the export market then that portion of the grain would be considered subject to the Act.

[TOM4CWB]

Vader;

I don't understand why the byproducts portion as a % of milling yeild that enter the feed market for animal consumption wouldn't be exempt from the buyback for that portion ending up as feed.

Why would API be different from Robin Hood on these animal feeds created from the wheat?

[TOM4CWB]

Vader;

COnversly:

If I set up a processing plant that produces no animal feed at all, Ethanol, frac. components that are not gluten or germ any more... but new products...

What would stop the CWB from forcing my venture to buy back the wheat going in... if the CWB Board of Directors decided to do so?

I need a specific exemption before spending millions upon millions... and if I were at the Lloyd Husky plant I would be really nervous right now!

Has the CWB specifically given a letter of exemption to this plant?

[JD4ME]

Actually it's a good point Vader, perhaps next time I see a director or an FBR I may ask them to bring it forward for clarification. I do agree with Ianben as absurd as it is if you stop and think about it I'm afraid we may eventually see better value in research into alternative uses for our products than the dollars that we could invest in new food based products.

[ianben]

Looks like you guys do need to sort out this conflict with CWB and show farmers and government are both pulling in the same direction.

These potential investors and customers will be looking for the best place in the world to build their plants not one which is bugged with red tape and silly rules.

Our HGCA which is conpulsary levy funded does at least try to encourage investment and inovate new uses and products both food and non food from our grain.

The multi nationals also will invest and inovate Cargills are about to use 700,000 tonnes of wheat in a starch plant from next year. This a totally new market for my wheat.

Canada has more and cheaper wheat than us.Canada has a better bio-fuels process
but UK has two plants producing the goods.

I cannot understand why your governments/CWB seems to discourage instead of welcoming and making it easy for inovative investment in value added grain products what ever there end use