Will Frankenstorm = Frankenmarkets?

[agstar77]

Premium back in for HRS, just after we are told nobody will pay extra for high protein. Apparently Japan and China will. I wonder who sold China HRS from Canada?

[wd9]

Charliep, how does safeway determine the
price of bread? Is it based on a bushel of
wheat? Definitely not.

One of the biggest challenges for farmers
is we are taking retail products and
creating a wholesale commodity. Seem
backwards to anyone else?

[bucket]

agstar77

Judging by the cwb PRO, I would assume the mental giants in winnipeg sold to Japan and china. History indicates they blow grain out at bargain basement prices.

And they might be buying wheat at 28 bucks a bushel again.

[charliep]

The challenge for farmers is they grow a generic high volume commodity that is sold at a daily price based on factors outside a farmers control. Anything a farmer can do to take of this would be a benefit but that means identifying customers, needs/requirements, working on supply chains/logistics and meeting their needs on a 365 day a year basis. You would have to answer the question why this doesn't happen more. It also does not mean removing price or production risk - it means sharing this risk differently.

Way off Errol topic but listened to a real interesting webinar George Morris Center did. The average farmer share of a consumer dollar at the grocery store is 14 % if I remember right. Varies from 50 % for beef/cattle to something very small for cereal based products (under 10 %). Grocery store margins, however, are continually getting squeezed by the entrance of new participants like Wal Mart and soon, Target stores. Grocery stores generally have relatively small margins but they make money on volume/other higher margin non food stuff consumers buy at the store. If you think farming is a tough, buy a local grocery and go head to head with the big guys.

[rhoff]

Wd9 you basically just described exactly what
producing a commodity is. If you want to get into a
niche high margin market then go for it,however
the majority of consumers (despite what they say)
all want a product grown and sold as cheap as
possible. The lowest cost producer will always win
wether or not we like it. Safeway will buy all it's
product as cheap as it can until it threatens supply
and will sell as high as it can until it threatens
demand.

[dave4441]

Ever try to feed your family a bowl of wheat?

[Choice2U]

No but we have a great wheat salad recipe.

[dave4441]

Ya, but the issue is that wheat is not in a form that can be consumed by people. It takes so much value added to convert to food that the price of it is totally disconnected from bread, or pasta, etc.

[fjlip]

BUT without the raw grain, the processors have an empty container of food! Still too much of a disconnect. Primary ag is the poor sister, taken advantage of, not fairly valued.

[wd9]

Then why are farmers 'retailed' to if we
produce a raw commodity?