Trade Changes USMCA

[Klause]

From the sounds of it the new nafta will make us and Canadian grain equal.

And a bunch of guys think this is great.


Except we are now officially no longer a premium market, won't get premiums at all for any cereals and on top of that are competing with a country that has far superior logistics infrastructure.


Way to go!!!

[jazz]

From the sounds of it the new nafta will make us and Canadian grain equal.

And a bunch of guys think this is great.


Except we are now officially no longer a premium market, won't get premiums at all for any cereals and on top of that are competing with a country that has far superior logistics infrastructure.


Way to go!!!

Very little american grain will come north. Why would it when it can go south on rivers and to market way cheaper than ours?

Premiums on cereals died long before any of this nafta stuff happened. Thats a result of millers using lower quality mixes and poorer countries not being able to afford better food.

The dream of high quality premiums is just a dream now. We need to adjust. Most guys are switching over to super high yeild HRS and forgetting about quality.

[Klause]

Very little american grain will come north. Why would it when it can go south on rivers and to market way cheaper than ours?

Premiums on cereals died long before any of this nafta stuff happened. Thats a result of millers using lower quality mixes and poorer countries not being able to afford better food.

The dream of high quality premiums is just a dream now. We need to adjust. Most guys are switching over to super high yeild HRS and forgetting about quality.

Why? Because American grain coming in will make ours cheaper. Unifying grading standards means no more 2 or 3 or 1 in wheat. .

And you're right since the end of the cwb we haven't had anybody push quality.


Growing "super high yield" wheat in Canada is a joke.

We can't get it to market cost effectively. How do you think we will compete with countries like Argentina, where the national average is 70 bu/ac and it costs 17 a metric tonne from farm gate to boat

Or the FSU where wheat yieldsre routinely over 100bpa and they have export freight subsidies.


This isn't about their wheat coming here (though I could see a trade war with them plugging our elevators on purpose... Anyone remember RCALF ?

Its moreso about lowering our wheat to US standard which you end up loosing that 60 cents a bushel we gain on bids of 2rs or higher shiploads... Get ready for all wheat to be at feed value.


We can't compete on volume.

We can't compete on reliability

We used to be able to compete on quality buy not anymore



So what are at going to sell on????


PS: high yield RS wheat like Brandon still has very desirable milling characteristics...

More and more people can afford better quality food.


We just are not even players in those markets anymore.

[blackpowder]

This post will surely resurrect the board supporters on here.
Before they get stupid on here, would someone explain briefly what this does to grain trade?
Googling it got no concrete info. Thanx.

[macdon02]

Very little american grain will come north. Why would it when it can go south on rivers and to market way cheaper than ours?

Premiums on cereals died long before any of this nafta stuff happened. Thats a result of millers using lower quality mixes and poorer countries not being able to afford better food.

The dream of high quality premiums is just a dream now. We need to adjust. Most guys are switching over to super high yeild HRS and forgetting about quality.

There's some absolute race horse varieties of hard red spring south of the border. Croplan and Winfield seem to have the best. Consistent triple digit yield

[fjlip]

Was grain a bargaining point with the US? Or did f*cking liberals deal us in to save eastern Canada?

[Klause]

The USA will regulate our exports of dairy to the world, and we will be forced to charge export duties on our own product - to the world (not just the USA)... Wow.

[jazz]

The prediction is that american imports to canada will double under this agreement, to a whopping 100,000 tons. This is no threat.

This will help to ensure elevator prices are the same everywhere and only adjusted for currency. When the CWB existed the price in montana was always higher than just the currency adjustment.

Americans are not going to abandon their world class logistics system to come up here. This is first rate fear mongering.

[jazz]

The USA will regulate our exports of dairy to the world, and we will be forced to charge export duties on our own product - to the world (not just the USA)... Wow.

How exactly is that going to happen? Vietnam and Belgium have the same dairy access as the USA now. We werent worried about them controlling our milk market.

[Klause]

How exactly is that going to happen? Vietnam and Belgium have the same dairy access as the USA now. We werent worried about them controlling our milk market.

Because Canada didn't agree to report to them all of our international milk trade, and self-impose tariffs on exports.

See below, text of agreement.

Notwithstanding paragraph 4, Canada shall ensure that the prices for non-fat solids used to manufacture milk protein concentrates, skim milk powder, and infant formula shall be no lower than the applicable price determined by the following formula:
(The USDA nonfat dry milk price minus
Canada’s applicable processor margin) multiplied by
Canada’s yield factor.
6. Paragraph 5 shall not apply to domestic sales of milk components for non-human consumption, such as for use as animal feed.
7. Canada shall monitor its global exports of milk protein concentrates, skim milk powder, and infant formula and provide information regarding those exports to the United States as specified in paragraph 12.
8.
(a) In a given dairy year, if the total global exports of milk protein concentrates and skim milk powder from Canada exceed the following thresholds:
then, Canada shall apply an export charge of CAD 0.54 per kilogram to global exports of these goods in excess of the thresholds set out above for the remainder of the dairy year.
(b) In a given dairy year, if global exports of infant formula from Canada exceed the following thresholds:
then, Canada shall apply an export charge of CAD 4.25 per kilogram to global exports of these goods in excess of the thresholds set out above for the remainder of the dairy year.

12. Further to paragraph 7, Canada shall make available to the United States data regarding Canada’s global exports of milk protein concentrates, skim milk powder, and infant formula, at the six digit HS Code level, on a monthly basis, and no later than 30 days after the close of each month.