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Vader, Remeber this... when we used to PLAy toGether?

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    Vader, Remeber this... when we used to PLAy toGether?

    Subject: Feed Barley

    Date: Tue, 13 Mar 2001 19: 12:34 -0600 (Canada Central Standard Time)

    From: "Rod Flaman" <rodflaman@imagewireless.ca>

    To: "Tom Jackson" <tjackson@connect.ab.ca>





    Tom,





    I need to more fully understand what you were saying on Agri-Ville.com





    "If the CWB were to facilitate an open free flow of feed barley and wheat into the export market, it is generally accepted that this would leave the domestic feed market at an unfair disadvantage.





    It is then stated that Feed users would then have to compete against a government-backed monopoly. Can there be any clearer evidence that the CWB is not here to maximize wheat and barley farmer's returns? "





    I understand the first paragraph. How do feed users have to compete against a ,government-backed monopoly?

    How could I get the CWB Board of Directors to accept a motion to start granting no-cost export licences for barley? What would go down the easiest with the board? Just feed barley? Just North America? All barley?





    Apparently one of the elected directors has been making noises about a North American Barley Market like Charlie Mayer had proposed. I don't think that an Order in council will fly just as it did no back then but we could simply allow no-cost licenses for North American sales.





    How do I get the other directors to buy in to this idea?





    Barley producers in general want marketing choice more than wheat producers. In a similar alignment Alberta producers generally like the board less than Sask and Man. producers. It would certainly take the heat off of the CWB from a significant number of producers if we let them market some barley on their own.





    What could the other directors argue would be the downside of this action. Remember it is at the discretion of the Board (for now - or so it could be argued). There could even be a limit just like Ontario has. Establish a tonnage and first come first served.





    I am copying this to a number of other people. Anyone care to draft a resolution for-me to take to the CWB Board Table?





    Rod





    10f2




    03/13/2001 10:4<

    #2
    Vader;

    You asked:

    "I understand the first paragraph. How do feed users have to compete against a, government-backed monopoly?"

    VADER;
    Just suppose the CWB were 'Superstar' marketers... and sold... a huge chunk of the crop... at a very high price... and were to actually going to pass those premium extracted prices back to grain growers...!

    So the PRO was say... $5/bu above the domestic price... what would domestic consumers be required to do?

    They would have to buck up with the extra $5/bu... or not get the grain they needed! BUCK UP AGAINST a GOV. Backed Monopoly with bottomless financial assets.

    ZAP... the domestic consumers/feed users... are no longer 'feed cost' competitive. Yet the Higher returns are paid to CWB grain growers. THE DOMESTIC grain consumers are TOAST. UNCOMPETITIVE. BROKE.

    [Kind of like now... only twice as bad!]

    SO domestic grain users either 'risk manage' (FUTURES ETC)... if premium cash pricing were to become the base of CWB pricing tools... or risk going broke if they don't.

    This costs BIG Capital.

    Pooling... solves it all. Flat prices...low volititlity...

    ABSURD low CWB FPC basis levels... also take the 'stress' off domestic consumers of our board grains pushing up domestic prices...

    AND give them a leg back up... at the 'designated area' grain growers expense...

    VADER
    THis is certainly not a premium being paid by the 'single desk'... Except if you count it as a premium paid to the domestic grain consumer... by the grain grower!!!

    Good play on words Vader?

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