G8 Declarations on Economy, Trade, Energy and the Environment

[charliep]

The below is a link to the G8 joint statement. Long on rhetoric - short on specifics but still interesting.

http://www.whitehouse.gov/news/releases/2008/07/20080708-2.html

I highlight paragraph 1 and raise the question of what this statement means for agriculture.

Quote:

"1. We remain positive about the long-term resilience of our economies and future global economic growth. Emerging market economies are still growing strongly though our growth has moderated. However, the world economy is now facing uncertainty and downside risks persist. Among others, we express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure. We are determined to continuously take appropriate actions, individually and collectively, to ensure stability and growth in our economies and globally."

End quote.

[cottonpicken]

Funny how that damn word inflation keeps popping up.

[parsley]

When one of the $800K-appointed committee members from the G8 Experts Group rings the G8 early warning bell system, announcing, "Ding, Dong, the crop is dead," will the G8's very own Canada respond by quoting the virtual crop estimations tabulated by the virtual survey pertaining to the virtual crops farmers grow?

Welcome to the world of virtual bs.

Parsley

[parsley]

...which reminds me of constipated thoughts that are layering on a White-coated tongue:


QUOTE

GLOBE AND MAIL
Eighth of July, 2008

AGRICULTURE Price spike turns up the heat at Wheat Board



The new chief executive officer of the Canadian Wheat Board is warning the federal government and farmers about rushing to dismantle the agency's monopoly position in order to cash in on high grain prices.

"If you are going to talk about getting rid of the monopoly you really need to understand all the attributes of what the monopoly does for you," Ian White, CEO of the Canadian Wheat Board (CWB), said in an interview.

"And, in my view, it's not just about high or low markets, it's about assessing all of the things that the monopoly should achieve for you and deciding whether they are valuable or not, rather than whether the market is sort of high or low," Mr. White said.

Citing the recent volatility in wheat prices Mr. White added that "you could just as easily say that the single-desk sales and pricing model could be just as valuable as in a lower market." Winnipeg-based CWB is a non-profit agency created by the government in 1935 to sell most of the wheat and barley grown in Western Canada.

Last year's sales were nearly $5-billion, up 40 per cent from 2006.

The CWB's future has been thrown into question since the Conservatives came to power in 2006. The Tories want to end the CWB's monopoly, arguing that farmers should have the option of selling their own grain.

Defenders of the board say most farmers want a single-desk seller because it gives them clout in international markets.

The battling has intensified as wheat prices hit record levels.

Both sides have been in and out of court several times recently and in 2006 the government fired CEO Adrian Measner for publicly backing the single-desk model.

Last Friday, Standard & Poor's lowered the CWB's long-term issuer rating to double-A from double-A-plus because of the turmoil.

"Given the commitment of the government to market-oriented reform and the current strained relations between the government and CWB's board, we don't expect that the level of federal government support for CWB's public policy role will recover in the near term," the rating agency said.

However, S&P noted that the CWB's debt is still guaranteed by the government and carries a triple-A rating.

Stephen Ogilvie, an analyst at S&P, said the CWB's future will depend on whether the Conservatives win a majority in Parliament and on elections for the agency's board of directors this fall.

Five of the CWB's 15 directors are up for election by farmers and the vote could affect the future of the agency.

The farmer-controlled board is now divided eight to seven between directors who support the monopoly and those who want change. The government appoints five directors and 10 are elected by farmers.

Four out of five up for re-election this fall support the single desk.

Mr. White, who became CEO on March 31, said the downgrade was "some loss" but it shouldn't affect the CWB's operations. The government guarantee "does provide us with a fairly good platform for borrowing," he said.

Mr. White is an Australian who has spent roughly 30 years in the grain business working mostly for companies based in Australia.

He came to the CWB after serving as CEO of Queensland Sugar Ltd., an export agency owned by Australian sugar cane growers and refiners.

That company was deregulated during his tenure and lost its legislated monopoly.

He said his experience at Queensland Sugar likely prompted his recruitment to the CWB. "I was probably assessed as a person who could think about the pros and cons of those things, in whatever circumstance, fairly logically," he said.

Mr. White, 58, was cautious when asked about his views on the single-desk system. "I actually think that the theory of a single desk can work very well," he said. "The main thing you have to do in that regard is make sure that it does create value and if it creates value and if producers want it after seeing that then so be it. But, you know, there's obviously no point in having things that don't add value." He described his relations with the government as "cordial" and said he won't become actively involved in the debate about the CWB's future. It's up to farmers to decide the issue, he added. "I'm more interested in creating value for the producers . . . I'll leave the politics to others." Tensions with the government are just one of the challenges facing the CWB. While grain prices have hit record highs this year, the price has swung wildly, making it tricky to know when to sell. The rush of index and pension funds into commodity markets has also distorted some prices.

"It's a pretty challenging time," Mr. White said. "I think while we may not see the big price spikes that we've seen in the past, although time will only tell about that, we certainly look like we're going to have a relatively buoyant year." He also said that while he feels for countries struggling with high food prices, his mandate at the CWB is clear. "Unashamedly, in a way, we are looking to make the maximum value for our farmers," he said. "We're very aware of higher food prices and what that means in a number of countries particularly where it's hard to afford food. But be that as it may, they are the world prices and you have to deal with those prices."
UNQUOTE