Canadian Elevator Company meets China's canola rule!

[sumdumguy]

Where's the Grain Commission? Ours is seldom over 1 Doc.

[sumdumguy]

This is sick that we don't resolve this pronto.

[tweety]

Saskfarmer, are you sure China pays for dockage?

Basis is determined at 2% and discounts are applied above that. This benefits no one in the industry here in Canada. Don't worry, China doesn't pay for chaff to the grain companies, just like them to you.

[blackpowder]

Support your local crusher.

[Guest]

tweety , why else would it be in there , our canola wouldn't ave 1.25% dock , and I'll bet yours doesn't either . 2.5% seems very odd ?

[tweety]

[URL="http://www.agwest.sk.ca/IRC2015/VBarthet_exportsurveys.pdf"]http://www.agwest.sk.ca/IRC2015/VBarthet_exportsurveys.pdf[/URL]

Look at page 12. It isn't that exporters add stuff to make the 2.5% on every ship. Below/above 2% is either premium or discount.

for China to force 1% means the exporters need to clean to less then 1%. Less throughput, more cost, all of which will be charged back to the farmer. Everybody loses. Lost sales. Selling dockage and moving it.

Not just discount off 1% as is 2% now, but as in reject.

[sumdumguy]

Tweety, the customer is always correct. He wants 1%, do what you have to do to suit him or lose him as a customer.

[farming101]

Wow this just gets worse. So grain terminals can either direct hit low dockage farmer canola into ships for a premium or top up with some dockage at no penalty. Where is that line on my grain check?
What's wrong with charging the customer extra for providing top quality, cleaned to 1% canola? Why does the cost have to be downloaded onto the primary producer?

[tweety]

Tweety, the customer is always correct. He wants 1%, do what you have to do to suit him or lose him as a customer.

Well, first you negotiate, like canola council is doing, emphasizing that science correlates their position is market twisting not factual regarding blackleg, and push until either outcome happens. I strongly disagree with SaskFarmers assessment that council is helping the exporters and screwing the farmers.

This is a case of all levels are screwed, but ultimately the farmer will pay for it all if China does not concede. But we always do. Everyone else is cost plus.

[tweety]

Wow this just gets worse. So grain terminals can either direct hit low dockage farmer canola into ships for a premium or top up with some dockage at no penalty. Where is that line on my grain check?
What's wrong with charging the customer extra for providing top quality, cleaned to 1% canola? Why does the cost have to be downloaded onto the primary producer?

The farmer always pays. Farming 101.

You can "charge" for 'top quality #1" but the customer won't pay or buy it. Economics 101.