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
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
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