Winter Wheat; CGC achieved 'Broad Consensus' on grades!

[TOM4CWB]

Charlie et el,

I received this letter from Chief Commissioner Elwin today:

"Dear Tom,
Thank you for your comments regarding upcoming changes to CWRW grades and protein levels. As we stated before, there were industry-wide discussions about these changes including the protein levels required for #1 and #2 CWRW and a broad consensus of agreement was achieved from producers and plant breeders to sellers and processors.

On that basis we are confidently moving forward.

Thanks again for your input,

Elwin Hermanson"

This was in response to pointing out that:

Protein is not a down grading factor in any CGC grade;

A #3CWRW with the single determining factor of protein: is useless as a grade for milling quality;

Eastern Canadian winter wheat growers are not subjected to this draconian downgrade in their CGC grades;

It is likely that the majority of the 'designated area' winter wheat crop will grade #3CWRW on an average year;

The 'new' CGC #3CWRW class will depreciate the majority of the winter wheat grown in western Canada... an 'AAA', 'AA', 'A', system of grades is used in progressive marketing systems to assure the customer produce being provided for food is not substandard.

Sadly, in western Canada, we know the best and most effective ways to depreciate and minimize the produce intrinsic value we grow.


Please write your MLA and MP.

A letter to the CGC would also be appropriate.
elwin.hermanson@grainscanada.gc.ca
cam.dahl@grainscanada.gc.ca; jim.smolik@grainscanada.gc.ca;

[mcfarms]

Tom

Whats the average falling number of winter wheat?
Oh right we don't use that in Canada.

[TOM4CWB]

MCfarms,

I note that 2010-11 px values on initial payments have radical changes from 09-10.

$10/t premium for CPSred 11.5px or over.

1CWRW 14px initial says $119/t
1CWRW initial says $96/t.

Select winter wheat is same initial, assumption is the 10/t select payment comes from CWB later?

We are told 1CWRS below 10% is now kicked down to a #2CWRS which has no grade px minimum. Same with 1CPS red.

Big changes... have a look!

This affects PPO contracts big time.

[TOM4CWB]

Charlie,

It is beyond understanding... why the CGC needs a #3CWRW for px below 11%... when the system as it stands now has seperated the px today. My understanding is that if a 1CWRW is below 10%px... in 2010-11 it will be kicked down to a #2CWRW!

Same goes for 1CWRS.

Who else knew the CGC did this?

[charliep]

Am on holidays/trying to avoid work stuff (at home working on "THE
JOB LIST") but am curious as to how impacts PPO contracts. You are
paid for the grade you deliver (type, grade, protein) and then the PPO
programs pays out the difference between initial payment and the FPC
you signed based on the base grade for that class of wheat.

The grading system is based on bulk handling and blending. Taking
one step further, things like initial payments ensure the element of
everything being categorized correctly for equity and equality purposes
among farmers - not supply chain efficiency or maximizing revenue.
Market signals are considered a bad thing - accurate signals which
draw specific grain into the handling system for a specific customers
requirement.

[TOM4CWB]

Charlie,

Time after time... year after year... terminals that are grower owned comment on how much money the CWB system drops on them. NON-Board grains barely break even.

Who do farmers think pays for this... and obviously the big grainco's are smiling even more!

No competition in wheat marketing is bad... from both sides!!!

I guess the Canola rotation will just have to get tighter!!!

Now; I just can't wait till the CGC screws around with: chlorophyll, oil content, and px on our canola...

Without a rational grower oriented grading system... futures and pricing options are useless.