Pulse Crops, Defered Checks

[mbratrud]

There are many rumours floating around about overseas buyers backing out on high value contracts. Is there a risk that some pulse companies could be in trouble? Many producers making decisions on Defering checks until Jan is this risky? I am curious to know what others have heard?

[broker]

I heard that BARI "rejected" a lot of their $6.80 guaranteed price malt barley too!!!

[charliep]

I have to put a plug in for the study that the pulse growers are doing with other farm on alternatives to mitigate transaction risk. Risk a buyer won't pay/take delivery. I also note the clearinghouse concept.

This is an issue every farmer should monitor. I don't think anyone wants to be someone elses banker these days - particularly as an unsecured creditor. Even for crops covered by CGC bonding, know the 90 day time lines and have the paper work in place for a company that is likely to miss the payment deadlines.

[bluefargo]

Pardon my ignorance - what does BARI stand for?

I am nervous about deferring. I have deferred cheques from Viterra and Cargill. Surely these will be OK.

I have made a decision not to defer on pulses. I haven't heard anything that specifically causes me concern but it seems like a good policy in these troubled times not to ask for problems.
Maybe I am overly cautious but the pulse companies tend to be smaller.

There is no guarantees these days is there.

[charliep]

BARI Canada is the malt barley purchasing group for
anheuser busch malt barley in western Canada. They
are the brewing company for budweiser beer to be
more specific.

http://www.cwb.ca/dom/db/buying/sales_process/ac
credit.nsf/webaccexpreg/66D24B2AAA96193986256
8F00051B1E0?
OpenDocument&CategRegion=Asia%20Pacific

[bluefargo]

Thanks Charlie
Now I can keep up with the conversation again.

[mbratrud]

That doesnt surprise me to much that BARI would be rejecting lots.. They generally have tighter specs. I was worried about the same with Canada Malting but surprisingly enough they have been fairly aggresive, even with higher priced product.

Producers definatly have to do their homework this year with companies that they deal with.