Announcement CWB Antidumping Tariffs

[wedino]

Tom4, >>Remember Soft red winter, Hard Winters, and Soft white wheats have no duty applied to any of these exports to the US from Canada. <<

Are the above wheats grown mostly in Eastern Canada?

[charliep]

My interpretation is that the countervail anti dumping applies to all wheats.

The below is taken from their press release.

"The products covered by the Hard Red Spring wheat investigations are all varieties of hard red spring wheat from Canada. This includes, BUT IS NOT LIMITED TO, varieties commonly referred to as Canada Western Red Spring, Canada Western Extra Strong, and Canada Prairie Spring Red."

[rain]

When LDP for corn start to go to US producers should we not be applying tariffs on corn, or meal coming into Canada?

What is good for the goose should be good for the gander!

[charliep]

If Canada applied the same principles, there would be high tariffs as not one kernel of US corn is produced that is sold at above cost of production (i.e. subject to antidumping)/would be counteravailable.

Why doesn't Canada go after the US on corn. The Manitoba Corn Growers Association did go this route late 1900's and would able to prove both countervail and antidumping (hence the short lived tariff. They could not prove damage to the western Canadian industry (corn doesn't make up enough of the prairie feed complex. To be successfull the Ontario Corn Growers would have had to support. They have not been willing to do this - they like being on a US corn plus freight price.

[rain]

I a normal year you are right charlie. However in the current crop year corn has displaced about 40% of the normal barley use for feed and about 75% of the normal feed wheat use in Western Canada.

Charlie do the math on new crop feed wheat and barley if corn futures go down to $2.00/bushel US with an $.70 canadian dollar.

[ianben]

Just a note that UK steel is laying off workers and closing plant due to over production and US tariffs.

No farmers seem to want to reduce output given the obvious market signal of a tariff.

The US wants to use home grown wheat even if it is inferior to Canadian and is willing to use tariffs to achieve this.

You assume you will still sell into US but only if us does not continually raise tariff. Steel is 30% I believe. Wheat was 3% now 10% Tomorrow if wheat continues to cross border ?????

What will 10/13% extra volume do to your other markets?
Will CWB be forced to dump even more further reducing your price and mine?

There is no way CWB or free market can market unlimited quantities of grain

[jgstuart]

Charlie....Lets see if I've got this right. If the Canadian government were to suddenly start paying Canadian farmers $4/bu to raise barley,(I know...I'm dreaming) and we turned around and sold if for $2/bu into the U.S.....There is nothing they could do about it because barley doesn't make up a large enough portion of the U.S. feed complex which is dominated by corn?

[charliep]

jgstuart

The answer to your question (as illustrated by wheat today) is yes - the US government would nail us with countervail.

On the antidumping side, lets say no gov't support (no $4/bu). Cost of production is $3/bu (on the average). Western Canada sells for $2/bu market price. Under their process, they could charge with $1/bu antidumping (selling below cost of production).

You will have no disagreement from me as to the fairness of this.

[jgstuart]

Charlie...Hmmmm. Seems to me that this "cost of production" component is downright ridiculous as it pertains to grain production. As we all know cost of production can vary widely not only from farm to farm, but from year to year. Obviously there are going to be times when you are selling below the "cost of production". I somehow doubt that U.S. corn which is flooding into the prairies would stand up to their own "cost of production" criteria.

[TOM4CWB]

Wedino;

>>Remember Soft red winter, Hard Winters, and Soft white wheats have no duty applied to any of these exports to the US from Canada. <<

Are the above wheats grown mostly in Eastern Canada?


THE answer is yes... and the North Dakota Wheat Commission has made it clear it is the CWB that they are upset with for dumping... in third markets especially.