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CANADA'S GRAIN SECTOR NEEDS MAJOR CHANGES TO BE PROFITABLE

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    CANADA'S GRAIN SECTOR NEEDS MAJOR CHANGES TO BE PROFITABLE

    I see this article in DTN... I have been saying these things for some time.

    When will grain growers stop fighting each other... respect and figure out what we need to do to effect real change... to rebuild an industry that is both profitable and self sustainable?

    The Article:

    "CANADA'S GRAIN SECTOR NEEDS MAJOR CHANGES TO BE PROFITABLE
    A recent report from the Saskatchewan Agrivision Corp. warns that without a new, sustainable policy created by farmers, profitability in Canada's grain industry will continue to suffer.
    In the report, 'Calling it Like it Is: Developing a National Grains Strategy -- The Prairies: Phase I,' Agrivision says export competition from emerging grain producers and a lack of profitability on farms has put strains on the industry.
    "There is an urgency to tackle the infrastructure, policy, farm business
    management and export marketing strategies that are all factors in renewing sustained profitability for the entire demand/supply chain, but most importantly for the grain farmers which are the source of production," says the report.
    It is important to state at the outset that most of the participants in the grains demand/supply chain are profitable and some are highly profitable. This includes the upstream input suppliers such as fertilizer, pesticide, fuel and machinery companies as well as the downstream stakeholders such as the grain buying companies, the transportation system, exporters, packers, processors, distributors and the retail system. Do these players have an urgency to change the nation's export marketing approach, particularly when many are heavily invested in the infrastructure supporting bulk commodity exports?
    The pinch point in the grains demand/supply chain is with the primary
    producers. There has been a severe profitability crisis at the point of
    production. The paradox is that every other stakeholder, both upstream and
    downstream, depends on a viable, secure, innovative production and supply system for their profitability, but yet every one passes on their own margin squeeze to the point of production. The system simply cannot continue to operate in this fashion. This is where "calling it like it is" is critical to challenge conventional thinking and conventional ways of operating the current grains system.
    Is it lack of profitability or the inability to effect renewal and
    succession in the industry that are the main culprits to the perennial lack of
    profitability facing farmers in the grains sector? How well do we understand what has happened over the past decades, and how do our preconceived ideas condition our ability to fashion a new policy direction?
    The full 78 page report is available at the Sask. Agrivision website.
    www.agrivision.ca"

    #2
    we need to organize a crops based organization to lobby for proactive policy and industry development to imporove the competitive position of primary producers.....we are fractured in our approach by the current crop based segregation ....ala canola, pulse, forage grass...etc....and the organizations like the cwb, wildrose and nfu are not the vehicle for promoting this change or repesneting our interests at this level......there are initiatives being undertaken at the producer commission level to promote such an strategy...

    Comment


      #3
      hear hear. get all the primary crop sectors together and put together something useful. we all market wheat, barley, ats, pulses, canola, etc. simultaneously off our farms yet we have all these different organizations who don't even like each other let alone work together, all trying to 'help farmers succeed' in totally different ways.

      what's this agrivision - just a sask organization or prairie-wide?

      Comment

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