Reading NFU thread a question?

[malleefarmer]

Sorry for my ignorance but just how many buyers to you have operating at your disposal during harvest and the rest of the year?

Harvest officially finished basically but currently still 18 buyers operating at our local elevator and peaks out during harvest maybe 35 which includes domestic and export.

Big ones are bunges ,Cargill ,emerald/sumitomo, gavilon,glencore,goodman fielder, louis dreyfuss, mitsui, noble, nidera, quarda,adm, agrex, awb,cofco.

Thinking maybe Canadian market and logistics is a way way different kettle of fish than down here at the bottom of the planet.

[blackpowder]

Not familiar with Oz at all.
But sounds like certain big differences.
I wonder if our distance to port and the control by a few players fed the socialist mindset so long we just sat in the dark for generations.

[malleefarmer]

Not familiar with Oz at all.
But sounds like certain big differences.
I wonder if our distance to port and the control by a few players fed the socialist mindset so long we just sat in the dark for generations.

reckon that's it in a nutshell distance to port logistics rockies snow you name it

[grassfarmer]

Not familiar with Oz at all.
But sounds like certain big differences.
I wonder if our distance to port and the control by a few players fed the socialist mindset so long we just sat in the dark for generations.

That's a confusion of history blackpowder - you make it sound like the CWB led to few grain buyers and it's ending will result in a huge array of competing grain sellers starting up. In fact the CWB was set up BECAUSE there were so few grain buyers and that hasn't changed - nor is it likely to as these companies don't want competition because competition is bad for them - it cuts into their bottom lines.

[sumdumguy]

Transporting wheat may not be a problem soon. Our zero-till and excessive trash cover has created ideal conditions for disease - producing so much disease that our product is almost unsaleable. How do they grow wheat without fusarium and vomitoxin elsewhere? Burning and tillage have been replaced by fusarium and vomitoxin.

[Guest]

Sorry for my ignorance but just how many buyers to you have operating at your disposal during harvest and the rest of the year?

Harvest officially finished basically but currently still 18 buyers operating at our local elevator and peaks out during harvest maybe 35 which includes domestic and export.

Big ones are bunges ,Cargill ,emerald/sumitomo, gavilon,glencore,goodman fielder, louis dreyfuss, mitsui, noble, nidera, quarda,adm, agrex, awb,cofco.

Thinking maybe Canadian market and logistics is a way way different kettle of fish than down here at the bottom of the planet.

within 35 miles we have richardson,linear grain, viterra, cargill, bunge, schoular and dreyfus. they are each in their own elevator or terminal that they built or own.also two or three brokers that will buy and send trucks to farm for pickup. harvest and a month or two after is "happy hour" for buyers most years as farmers scramble for storage. most farmers here don't have enough bins . we have 41 bu for each acre we farm , usually not near enough. grain bags have thrown a wrench into their "happy hour" as a lot of farmers have baggers and use them. most years you get well paid for filling them .many farmers preprice a lot of crop for delivery from combine in sept and oct , but it is risky as many farmers found out last summer after our 42 " rain growing season (8-9" normal)and had to buy their way out of contracts
so are you saying you have 18-35 buyers operating out of your one local elevator?

[westernvicki]

Cargill, JRI Richardson Pioneer, Viterra, P & H, Patterson, G3, Growers Connect. ADM & a few producers owned independents still exist, and a few specialty crop buyers (lentils, chickpeas, peas) are now entering this market but mostly to ship in containers. We have a strong broker program that will shop product around.

Given that wheat, barley & canola all ship by vessels, terminal capacity implicates the value chain, the industry should welcome a new terminals which will serve to increase competition and access to export markets.

I believe post AWB demise AU. legislated terminal owners to provide capacity to non terminal owning buyers, is that correct?

[westernvicki]

Missed Louis Dreyfus, Bunge.

Anyone else?

[bucket]

Caseih

I think you are on to something....imagine an inland terminal equal to a port facility.

All the buyers buy grain at one place and then trade in house to make the next unit train....when it heads to port it has a designated facility to go to.

More grain could be put in position to move....could help with blending...etc.

It's not a one buyer like the old days ....it's competitive system that makes all players money including farmers...

An example let's say viterra was buying durum but was short 10 cars but Cargill had it in store....the unit train still gets filled on the prairies instead of waiting at port....when demurrage goes up again this will make more sense than waiting.


Canola at one.. wheat at another etc. At the port facilities.

Seems it would be easier for the grain cos to trade grain on paper out here than than play tetris with boats at the west coast.

Logistics are done here on the prairies and all that happens at port is the loading of boats.

[Braveheart]

Our hauling radius has Richardson, Cargill, Viterra (Glencore), Louis Dreyfuss, Linear Grain, P & H, G3, Gavilon, Schoular, Bottineau Farmers Co-op, North Central Grain, Rolla Farmers Co-op, all the CHS elevators in Winkler, Devils Lake, Langdon and Drayton, Bunge, ADM, as well as direct to flour mills in Hastings MN.

[malleefarmer]

casih yes that's 18 to 35 buyer at our elevatopr plus myriad of buyers who buy direct off farm.

My preffered option is actually selling to container market most days $20 to 25 above market extreme days $40 plus.

Yes westernvicki there is access to all buyers at port legislated. And a auction system for port slots see what I can dig up.

http://www.abc.net.au/news/rural/rural-news/2014-12-12/nrn-shipping-slots/5957576
http://www.smh.com.au/business/auction-system-goes-against-the-grain-for-some-traders-20140909-10eiw0.html

Last link in WA have since moved to LTA

[blackpowder]

Well, I'm drinkin draught so I'll humor grassfarmer.
I'm sure he well remembers 6 bu quotas and criminal charges for moving grain interprovincially.
As well as all the complete and unwavering support by his political kin for the mindset that forbid advancement by anyone unless it could be accessed by everyone.
Those same kin played into the shipping families' hands very well for generations.
I'm sure he well remembers the debate to control canola?
I'm speaking to the general industry mindset nursed by a few.
I'm sure he grew up as I did being forcefully told that the earth was flat and threatened not to commit heresy.

Ya, what I thought. You didn't.

[malleefarmer]

The big difference between Australia and Canada we had deregulated domestic market for at least 15 years before the export market became deregulated so we had lead in period. And we had cash prices for those 15 years pools could only compete in rising markets not falling or flat markets.

Exporters all knew it would happen eventually so they we positioning themselves logistically and with some infrastructure years before it happened.

Then In last I think 5 years the actual single desk allowed third party access to pools and sales as well so we had a quasi single desk.

If AWB played there cards right instead of being dogmatic they could have still had market share but didn't now as we know Cargill bought them out so we have Cargill/awb basically Cargill do cash and old awb still does pools with some cross subsidization I'm sure.

So we were kinda prepared wereas Canada almost went cold turkey.

The single desk in my opinion became redundant when globalization of grain markets occurred previously there were a awb cwb and usa major exporters but when black sea Ukraine Russia whatever became low cost supplier it all unravelled and could not continue Australia so called single desk premium for quality became a myth buyer wanted cheap grain and ability to blend up rather than pay top dollar for top quality and blend down if that makes sense.

The only real premium we had was blue ocean freight advantage into se asia, asia china and north Africa, nothing more nothing less.

Not having a crack at grass farmer persay not sure if he grows grain but he does beef, don't know your first name grassy but would you sell your beef in a pooling arrangement with a lot of other proiducers or prefer your direct to customers premium which I think you do.

Example this year here in aust malt barley has fallen from around 230 port to I think 170 port a lot of single deskers were prepared to put malt barley in a pool here in aust they still function and serve a purpose for those who wish to use them but have inflated figures and smoke and mirrors well guess what current malt estimate is 180 port they have a 30% first payment with no guaranteed date of second payment or pool wind up 18 months away I guess but if maly rallies they could be in the money, crikeys I just saw a flying pig go past my window

[blackpowder]

OK, switching to whiskey. Grassfarmer dictating _ _ _ history is like me postulating on William Wallace. False news.
The real traitors are Integrity Farmer, chuckchuck etc. Born here and yet wearing the bedsheets. Rewriting history.

Dont know Oz history at all. Did you have a remnant of the post 1st war communist movement guide legislation that lasted 80 years??


Denial of culpability allows all sorts of self absolution. Admit to one oz of blame and see true light.

We live by the sword. These people deny it. Pursuing the whale yet not answering to it.

[blackpowder]

Another study might be the cause and effect of the vast difference in commercial storage capacity between Canada, US and Australia.