Canadian Elevator Company meets China's canola rule!

[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.

[SASKFARMER]

Sorry if China wants 1% then we give them 1%.
But do like they do to us charge them a cleaning fee if they don't like it F&)k them it's really simple!
They play games we bend over always so maybe once just call their bluff.

But this is Canada the price will be adjusted down to the farmer and middle man and China will get what they want.

Great trade partner!

[MBgrower]

Yes export buyers pay for dockage, why else would the linecos add it back? otherwise it would be dead ocean freight.

[bgmb]

Commercially clean for canola allows for 2.5% dockage. So grain co can sell to X country for lets say $500 per tonne fob vancouver and they will get paid for all the tonnes dock included as long as its "commercially clean"

At least thats the way I understand it.

So elevator buys off farmers at an average of 2.5, its really 1.0 when it is graded at port so they add 1.5 of shit back in and Chinese are sick of buying 1.5% shit. Cant blame them I guess.

[AlbertaFarmer5]

I fail to see how it is helping our cause to post on a public forum about ports adding dockage back in. I don't know if it is true, and doubt that it is, but are we adding ammunition to our buyers by propagating this rumour? Or does someone have evidence? Same for the people claiming to spray off label etc. Anyone could read this, in any country. I doubt Agriville is banned in China?