Single Desk CWB

[TOM4CWB]

Chaffmeister;

I have a neighbour who just got back from CIGI, and said the CWB is headed for a single desk stool with the other two legs of gov. gaurantees and pooling gone.

His confussion was evident... he said he would never want a system like the AWB... currency risk management was a waste as hedging the risk would cost more than any benefit of hedging could accrue over the long term...

The AWB "A and B" share structure he said was a disaster...

What's your comment on these issues folks?

Are people who feel the need to, "manage risk", fools?

[chipper]

Just curious Tomforcwb, but I thought there used to be a CWB rep who used to answer questions about these things on the strings of thought on Agri-ville. Obviously risk management needs to be the major concern of all who farm as this seems to be the end all of many of my nieghbors who lost their farms over the years I have been watching. It seems interesting that no one from CWB seems interested in answering something this important. Is this lack of CWB response a policy set by the elected reps or is this set in order by other forces? I would like to see our country reps step up the table and be accountable. I believe there is an office in Airdrie.

[TOM4CWB]

Chipper;

It seems the CWB thinks we will forget about them if they ignore us.

I believe the CWB does monitor this site... but thinks added credibility is accrued to those vocal folks who are directly contributing... if the CWB is seen to be paying attention to the issues brought up here.

The new management style at the CWB instituted some 6 months ago ( I learnt about in Dec at the C to C)instructs CWB staff and programs to directly ignore those who are preceived to be "against" the CWB... and to further "educate" everyone else to the great job the CWB is doing in an active manner.

THe justification is that the CWB is a commercial company, and has the right to ignore those who don't like CWB policies... much like Petro-Canada or The Bank of Montreal would do.

[TOM4CWB]

Chipper;

The practical implementation of the "new" CWB policy on communications with farmers who are displeased with CWB performance is as follows:

1. Humiliation;

2. Alienation;

3. Intimidation.

4. If the above three tactics fail, distort the truth to insure the above three do work… as most people will not take the time to research what the truth in the real world is. If the average person accepts the CWB answer… even if it is a distortion… so much the better for the CWB

The average farmer refuses to be dragged into this CWB game, as it is hurtfull to neighbour relations, which is exactly what the CWB is counting on.

Further, because CWB issues are intentionally driven into the emotional realm… it is a destructive process (driven by the above three tactics)…

therefore most farmers refuse to be drawn into the CWB debate on specific issues.

The CWB laughs away… this is exactly what the CWB expects and needs… it’s purposes are fulfilled.

[chipper]

Tom4cwb. It would be interesting to see if real media is aware of this site and if they could stir the cwb into some questions on the reality of farmer stress. Cash flow and real marketing need to be a concern of cwb policy. I watched a number of years ago over 20 some families within a 7 mile radius of our farm stop farming. It seems that when one takes total control of the marketing of a commodity, there should be a reponsibility of the controlling party to continually consult with the players with they are ultimately responsible for. It is one thing to have consultants reveal a problem but another to implement strategy to overcome marketing realities and help even the smallest farmers make choices that allow them profitable solutions. In a big picture we will always be held to the law of lowest price by countries that subsidize and countries that do not have a consience for community development. I don't see the CWB using world future markets to protect highs and cover us from lows in the market place. Until they do so, we will miss out on oportunities for pricing at profitable levels to see continuance of reasonble size farms. I have had private conversations with local reps but they have not got back to me with any solulutions. It seems there are enough facts to let real media take a look at and let them ask questions. Maybe our next generation of MPs and elected CWB reps could then held accountable.

[TOM4CWB]

Chipper;

In the world of commodity production... your points are valid on Canadian grain farmers being price takers who grow grain for the CWB. On page 12 "Qualifications" Appendix II of "Update on the Variety Eligibility Declaration (VED) Proposal, A study on producing specific new types and varieties of higher producing wheat outside the KVD system we have now... Dr. Brian T. Oleson states:

" 1. It is assumed that Canada is a price taker. Given Canada's dominant role in world quality markets there may be a price depressing impact associated with the CWRS reducing the benefit. Even if there is not a price depressing impact on the entire market, the CWB would be pursuing more marginal customers with this extra production...."

Brian Oleson is a strong supporter of the CWB single desk...

yet he does not have the vision or aptitude to understand synergies of products that add to profitablity of both my farm... and the marketer of specialty products...

which can do exactly the opposite being a price taker... extract a premium from the market place by the production of specialty IP products that add value for consumers and endusers.

New winter wheat varieties grown this year (2003) being sent to Malasia is a perfect example.

At FarmTech the CWB told us that the Winter Wheat Select market development program produced Canadian WInter Wheat of superior quality to US Hard Red WInter... yet the CWB target for this specialty CDN Wheat is to blow the doors off US WInter WHeat going into Malasia... a typical lower value high freight cost market for Canadian farmers.

THis COmmodity mentality of the CWB is counter productive to adding value and profitability to my farm's bottom line... yet to reach the human consumption market I must go through the CWB domestically or in the export market.

How do we get past the CWB tendancy to devalue our specialty products... and stop the CWB from blowing out these products into low value markets that cannot afford to pay for the extra intrinsic value Chipper?

[chipper]

Tom4cwb. It seems if I were to hire you to sell something for me, I would come up with a bottom line and some kind of a time frame in which we could do business. If other events or situations were to intersect our plans we both would have an exit plan and the bottom line would be if another opportunity came along and presented itself to me rather than you, you should have the honor to let me pursue the highest value for my grain. After all it wan't your's really in the first place, and you should be happy that I do better. If you went around spending money justifing your existence instead of just wishing me the best I would be a bit miffed at you. I suppose one could put the farmer and the CWB in the same scinario. We the farmers ask only for consultation before making sales to see if the numbers crunch in the end. I see you skirt around my question about bringing someone like CBC or Global into a tranparent discussion. Maybe that would be a bit too radical. It's just too bad someone with CWB authority couldn't come back to this discussion where healthy ideas could be batted about.

[parsley]

Chipper,

Your reasoning comes straight from your bottom line.

What can the CWB possibly say to a guy like you?

Parsley

[TOM4CWB]

CHIPPER;

On the media issue... I have seen far too many distortions and problems with reporters looking for sensational stories that sell news... rather than actually looking for the truth in our reality.

Value chain creation of a premium for wheat and barley should #1 on the CWB list of priorities...

INSTEAD;

THe CWB seems to be the last marketer we deal with on our farm to respect our need to create a profitable environment which prospers our families farm...

What do we need a single desk for... that fails the most elementary need my farm has... a fair price for products I grow for them.

It astounds me that feed peas can get to Europe from the CDN prairies with a farm gate price of $5.00/bu... yet the highest quality milling wheat on the face of this planet... which we grow on our farm too...

Is worth less... through the single desk...

This is a staggering thought to consider... in a time with such low wheat stocks globally...