makin' it work 2

[silverback]

Ah, the old shell game again.

Those big mean railways are the problem right now, they are the reason we can't pay world values for your grain. We have to fight them tooth and nail. Then we will take on the multinationals. Don't ask us why your pro's will never match world values it's not our fault.

Keep grasping redstar.

[parsley]

agstar logic........

Railways are problematic working with the CWB.

Therefore

Railways will not be problematic working with 'more of the same' CWB.


That is logic from dumber than dumber.How many times did you repeat Grade three, agstar?

Parsley

[agstar77]

Not as many as you repeated kidergarden.

[ag.student]

multiple buyers should bring more competition and therefore better prices. my concern with that theory is that those same buyers are competing on the other end of the chain. what happens when they compete against each other for wheat sales and then base their elevator bids on those sales? prices will settle at some market equilibrium. The $60000 question is whether or not it's still better than CWB. Competing for grain handle should cause some cuts to elevation, handling costs, etc. Any comments?

[parsley]

agstudent

You ask

"what happens when they compete against each other for wheat sales "

The CWB does it all the time right in Canada!. They compete against Ontario all the time. We don't have a single in our own country.

Parsley

[parsley]

agstar,


Think about your answer, and answer yourself why it is a poor answer.

You will eventually figure it out.

Give yourself two full days, and if you haven't figured it out, email me and I'll tell you.

Parsley

[Fransisco]

Agstudent says, "what happens when they compete against each other for wheat sales and then base their elevator bids on those sales?"

If they make a sale without actually having secured the grain first or at the same time I would think that they would take an offsetting position on the futures market so that they are protected against any price movement until they secure said grain.

At the end of the day it is supply and demand that determine price. It's not determined any more by what price a grain company sold the grain for than it is by what it cost a farmer to produce it.

A company that tries to undersell the market by too much soon finds itself with no product to sell.

Good question.

[Fransisco]

And yes it is way better than the CWB which has to compete with no one for your grain. Any cross border price check verifies this in a nanosecond.

[TOM4CWB]

Tower and Agstar,

One of my real concerns about the CWB today, is the lack of real market signals that get back to "designated area" grain growers at the farm gate.

I believe this to be a principal problem with the Aussie system as well.

1.) How much grain has the CWB booked ahead/sold to consumers/CWB Agents; of our produce?

I know with my Canola how much commitment my farm has to the market.

Please explain how much of my wheat/barley has been pre-sold by the CWB/Agents for 07-08? How much for 08-09?

2.) What is it that shackles my mind... and bothers me; about the CWB buying barley from the domestic market TROUGH the Agents it owns... to procure feed barley?

Why through Agents of the Board... when the responsibility to "Designated Area" grain growers is to "maximise" growers real farm gate returns... NOT to increase Agents of the CWB's returns!

Why would the CWB instantly want to work elevation and system costs into the farm gate price... when higher returns are an alternative by the CWB buying directly from "Designated Area" growers in an open and transparent manner?

I feel very "disconnected" from the international wheat/barley market... What is going on with my grain...?

[parsley]

Look at the feed mills.

Here, the CWB decided NOT to market all the grain for Designated Area farmers. They allow the feed mills to go DIRECTLY to the farms to buy feed wheat/feed barley and then have it exported as feed.

IF the CWB gets more money through single-desking, why do they not market/pool this grain?

Nope! They decided to forego in favor of the feed mills.

In your case Tom, they have deciided to maximize profit for the companies a again.

So who makes that decision.... B of D

Why this decision?.......not in interest of producers, so what do the Directors gain from doing this?

Parsley