I detect an upcoming onslaught to use figures to prove the CWB's grand plan and its marketing genius have produced extraordinary results in marketing this years durum crop.
The only truth I'll concede is that in the absence of the CWB; Canadian farmers would have the opportunity to behave like their US counterparts. Operating outside a monopoly would also provide the chance to market differently than the US system. It should not be taken for granted that all farmers will always market all their production without regard to the products potential worth. There are examples of how grain stored can now be sold for handsome profits. Not many of those examples involve the CWB.
If I were a member of the CWB marketing team; I would be ashamed of last year's durum pool performance. Considering that the world basically has to come to Canada; year after year for the majority of the world's exportable durum supplies; and the fact there is no futures price mechanism for durum; and that quantity and especially quality are largely unknown until after harvest (thus large portions of the upcoming crops should not be priced by the CWB until about September); and especially considering that when your market intelligence clearly shows very tight supplies; why would any marketing agency compete vigorously at all times against minor players who are going to sell out their supplies anyway. Doesn't that just drive down prices when there is absolutely no need to do so. When you don't have 100% market share; or the supplies to satisfy the remaining share; do the best marketing job with the market advantages within your grasp.
With all the above aces in a very strong hand; why did the CWB essentially give away our last years durum crop? If they would put a fraction of the effort into a marketing plan; rather than trying to sell the producers a story about how much better they are than some foreign system; then Canadian farmer's interests would be better served.
My analysis is that knowing absolutely nothing about world durum markets; it would have been impossible to get poorer returns than the CWB has over the last crop year. The plan, as always would be to not sell below costs of production; and not fight for every sale; nor sell in panic mode.
The CWB asking prices basis ThunderBay and St. Lawrence have consistently been between 17 and 29 dollars over most of this crop year. Taking a $1.70 off for costs leaves a figure a lot different than what the producer will receive.
Before trying to convince their suppliers of superior results; we farmers should be skeptical that the CWB is capable of even a credible performance. I am told that performance bonuses are now a part of CWB salaries.
The only truth I'll concede is that in the absence of the CWB; Canadian farmers would have the opportunity to behave like their US counterparts. Operating outside a monopoly would also provide the chance to market differently than the US system. It should not be taken for granted that all farmers will always market all their production without regard to the products potential worth. There are examples of how grain stored can now be sold for handsome profits. Not many of those examples involve the CWB.
If I were a member of the CWB marketing team; I would be ashamed of last year's durum pool performance. Considering that the world basically has to come to Canada; year after year for the majority of the world's exportable durum supplies; and the fact there is no futures price mechanism for durum; and that quantity and especially quality are largely unknown until after harvest (thus large portions of the upcoming crops should not be priced by the CWB until about September); and especially considering that when your market intelligence clearly shows very tight supplies; why would any marketing agency compete vigorously at all times against minor players who are going to sell out their supplies anyway. Doesn't that just drive down prices when there is absolutely no need to do so. When you don't have 100% market share; or the supplies to satisfy the remaining share; do the best marketing job with the market advantages within your grasp.
With all the above aces in a very strong hand; why did the CWB essentially give away our last years durum crop? If they would put a fraction of the effort into a marketing plan; rather than trying to sell the producers a story about how much better they are than some foreign system; then Canadian farmer's interests would be better served.
My analysis is that knowing absolutely nothing about world durum markets; it would have been impossible to get poorer returns than the CWB has over the last crop year. The plan, as always would be to not sell below costs of production; and not fight for every sale; nor sell in panic mode.
The CWB asking prices basis ThunderBay and St. Lawrence have consistently been between 17 and 29 dollars over most of this crop year. Taking a $1.70 off for costs leaves a figure a lot different than what the producer will receive.
Before trying to convince their suppliers of superior results; we farmers should be skeptical that the CWB is capable of even a credible performance. I am told that performance bonuses are now a part of CWB salaries.
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