New Study Using Gray's Methodology Concludes CWB Performance Sucks

[Fransisco]

<a href="http://www.bus.ualberta.ca/wcer/pdf/98print.pdf ">Click on this sentence to read the study.</a>

[Fransisco]

Published by the University of Alberta School of Business, the study looks at the CWB's marketing performance over the last 5 years using the performance criterion proposed by the 2001 ‘Gray Report’ and accepted by the CWB’s Board of Directors.

[Fransisco]

The author, Richard Pedde, a self-professed CWB-supporter, focuses on the net farmgate prices received by Canadian farmers under single desk selling and the net farmgate prices they would have received in the absence of the CWB

[Fransisco]

From the press release.

<blockquote>"Pedde’s study follows the accepted methodology and uses five years’ data for six types of grains. Thus, prices paid on particular days by certain elevators at specific delivery points in Montana and North Dakota are compared to prices received by Western Canadian producers at similar locations. The results show that Western Canadian producers received lower returns than comparably located producers in the Western US for most grains and grades. The conclusion is that there is no “superior performance” by the CWB." </blockquote>

[Fransisco]

Pretty sad, even using their own board certified measurments doesn't get the board of directors the results they want to see.

[Fransisco]

Okay guys time to explain yourselves again.

You're on the inside, we're supposed to trust you on all this stuff. And now we find out once again you are not working on our behalf.

What gives?

[Fransisco]

Okay guys time to explain yourselves again.

You're on the inside, we're supposed to trust you on all this stuff. And now we find out once again you are not working on our behalf.

What gives?

[Fransisco]

I heard Measner on a radio show last week talking about how you guys are constantly using benchmarking to see how the board compares to other players.

So what's the scoop, is Gray's methodology right or wrong?

[Fransisco]

If its right and you guys have been carrying on buisness as usual you are not doing your job.

If its wrong, then how is it wrong, and how can we trust any of Gray's other work?

[Fransisco]

More from the study

<blockquote>"The most general observation from this data set is that CWB performance is not consistently superior to the naïve strategy in any of the grains or any of the grades (Tables 6 to 11 below). More specifically, there is no evidence of a consistently positive performance in any of the grains or grades, supporting the premise that grain markets are efficient."</blockquote>