Hosed again!!

[achiliak]

We have been hosed again. This time with malt barley. Last fall, we had some Stein that the maltster said was good enough to be accepted. In fact, they said about 92% germ. Stayed that way all winter. At first, they said they would take it about December. Then February. Then May. Then July. Then we hauled some (about 1/4) in July and they accepted it as they said the germ was still the same. Then end of crop year comes around and they say that the germ has suddenly dropped to sixty-some percent and they don't want it anymore. Too bad. No storage. No premium. No nothing!! Feed price sucks, banker needs money. Our projected cashflow from October suddenly takes a $30,000 slam!!

Do we have any recourse? Should we send a sample to the CGC? Yes we still have some from the bin that we hauled in and was initially accepted. What else can we do? I am frustrated that they just kept our barley tied up long enough so they could now get new crop grain and at a lower price too. We were obligated to them once they accepted, they should be obligated to us as well don't you think?

[ivbinconned]

That is why I quit growing malt varieties. Was good at it to. But would often get jerked around. Also got fed up with the wheat board slipping it to canadain malsters (mobsters)at some times half the world price and then telling me "don't worry,be happy". Some feed varieties produced very high yields and went straight off to the feed lot. Money in had right away!!

[ivbinconned]

Cash prices at elevators in Northcentral Montana
Sept 2 2003.

#1 Dark Northern HS 14% protein same as #1 CWRS 13.5% Protein. $5.18 Canadian.

CWb Pro #1 CWRS 13.5% $4.28

Malt Barley 2 row harrington in montana $4.20 Canadian.

CWB pro SS Malt $3.40

Does anyone doubt that if we had a free market for wheat and malt barley that these cash prices in Montana wouldn't duplicate themselves in our cash market.

The CWB says we're not dumping wheat but my wheat cheque says we are.

Has the Pro ever matched these cash prices, NO!

I don't want to pool my price, I want a cash price. I don't give a dam if it is un Canadian.

[charliep]

I will do some checking on this. Of interest to me is the aspect of delivery commitment for specific periods (take a third by Dec. 31, next portion by the end of March and the final before the crop year ends). If a maltster falls out of their delivery contract, then the farmer should be allowed to shop their grain to other buyers/maltsters.

[achiliak]

charliep
The maltster had not comitted to taking a third at these different times, they said they would be taking it by that time frame. But each time that a particular time frame came around, they would make a new time frame for a couple of months later. I thought at the time that it would just equate to more storage. I was wrong..... again.

As far as feed barley is concerned, we are in that hot, dry area which consistently forgets moisture. We and others have tried feed varieties with limited success. It often is in the 42 - 46 lb range with poor yields. Mostly 6 row being a problem. That is why we grow 2-row with the aim of malt. We cannot grow the big yields here.

[charliep]

With apologies for not going into more detail (will do later), the CWB has a publication that goes into some details as to the contractual arrangement between a grain company/maltster and a farmer. This can be found at: http://www.cwb.ca/en/movement/elevator_managers/pdf/2003-04_elevatorguide.pdf

The pages are 33 to 38. Of particular interest to me is you have the right to negotiate delivery terms in the CWB contract (it doesn't have to be negotiated separately).

I look forward to more feedback/experience.

[achiliak]

Not that I am fond of the pooling system to begin with, but don't you think it would help the producer a little bit if the maltster had to pay the storage on a monthly basis whether they took the grain in the end or not??

I think they would reduce the amount of games they play with us if this were the case.

[melvill]

I think if you take Charlie's suggestion and read pages 33 to 38, you'll find that in some circumstances "farmers may be eligible to receive storage payments if their barley is later rejected solely because of germination."

I'd really encourage malt barley producers to read that section. If you can't get a copy of those pages from the "Country Elevator Guide" at your local elevator or from the CWB web site, call me and I'll send you a copy.

403-362-1355

Lee

[rain]

Guess what guys this is the same old story told every year. The next time you sign a malt contract stipulate a time frame. Write it down on you contract and initial it. Get the buyer to do the same. When the time come and the grain does not go sell it for feed.

I hate to say this hosed again. This is your fault not the maltster not the grain company.

Our fear of not getting malt clouds are judgement and tends to make us do things we shouldn't.

You had a time frame. Next time make the buyer stick to it.

[charliep]

Just a note that this happens most. Talked to someone who is short bin space (as everyone is given expense of building). Part of the marketing plan was to get a grain company to agree to take malt barley off the combine. This was agreed to verbally by the customer representative of the company. Harvest comes, bins are full (as I quess are elevators) and all of a sudden the company doesn't want the grain at the moment (has been selected by the way).

What should be asked for is the same requirements the grain company asks of you - to meet the terms of the contract including shipping periods. Perhaps farmers have to push to get more commitments in writing.