Something to be proud of

[farming101]

ASSUMPTIONS:
Domestic malt industry supplies 300,000 tonnes of malt for made in Canada beer
Malt yield from barley: 82.8%
Farmgate malt barley price $5.25/bu
Canada domestic brewers hold 85% of Canadian beer market. (15% imported)
https://www.producer.com/2019/09/barley-growers-want-royalty-analysis/ https://www.producer.com/2019/09/barley-growers-want-royalty-analysis/
https://www.beercanada.com/homepage https://www.beercanada.com/homepage

Oh by the way, the industry now is attempting to get a handle on how badly the barley crop has been damaged by the recent rains and how much they will have to discount the barley they take so as to help us out a bit

[bucket]

Is there a chart like that for wheat?

And add in a column for price fixing revenues....

[farmaholic]

This should surprise no one.

[AlbertaFarmer5]

With the recent changes in regulations (at least in AB), there is nothing stopping anyone from capturing a piece of that value added market, and farmer owned breweries are popping up all over.

Can you post a similar chart for raw aluminum vs a finished Boeing dreamliner, or copper/lithium in an iphone.

We are in the bulk commodity production business, where the business model is that long term prices will revert to the cost of production. Our COP is completely disconnected from the cost of a finished product.

[Sheepwheat]

A farmer should want to have a chart where the single bar, your own price, rises to the heavens!

[dmlfarmer]

With the recent changes in regulations (at least in AB), there is nothing stopping anyone from capturing a piece of that value added market, and farmer owned breweries are popping up all over.

Can you post a similar chart for raw aluminum vs a finished Boeing dreamliner, or copper/lithium in an iphone.

We are in the bulk commodity production business, where the business model is that long term prices will revert to the cost of production. Our COP is completely disconnected from the cost of a finished product.

Furthermore, in a global economy, the price does not revert to YOUR cost of production, but to the LOWEST cost of production anywhere.

[farming101]

With the recent changes in regulations (at least in AB), there is nothing stopping anyone from capturing a piece of that value added market, and farmer owned breweries are popping up all over.

Can you post a similar chart for raw aluminum vs a finished Boeing dreamliner, or copper/lithium in an iphone.

We are in the bulk commodity production business, where the business model is that long term prices will revert to the cost of production. Our COP is completely disconnected from the cost of a finished product.

Of course I realize that there are a lot of steps to getting Joe six-pack his daily beer.
However, unlike getting a jet airplane to fly safely(which even the wizards at Boeing apparently have to relearn), making malt and brewing beer isn't rocket science.
As you mentioned even farmers are doing it.

The point I was trying to make with the chart was that taking care of the goose will ensure you always have some golden eggs

[dmlfarmer]

The point I was trying to make with the chart was that taking care of the goose will ensure you always have some golden eggs

However there is not a single goose. There are tens of thousands, if not over a hundred thousand farmers in Canada alone able to grow malt barley - and they are all competing against one other to supply "the golden egg."

To even suggest growers need to band together for market power against the oligarchy of grain traders/brewers gets you labelled as a socialist. Instead the capitalist farmers on this list would rather beg for subsidies (which can be used to buy out neighbors).

Plus each Canadian farmer has a different COP, marketing strategy, storage capacity, financials, and end goals. Some are willing or have to sell at whatever price giving even more power to smart buyers armed with strict contracts, and massive amounts of information that farmers eagerly give freely, through our new found love of big data.

And that is without even considering off shore suppliers of malt or barley who are growing it at a lower cost than we are.

[Hopalong]

Agree we growers should be looking at own farm position growing different crops rather than what other parts of value chain are making in way of profits.
Own farm has done well with malt barley past few years, getting it off ahead of weather damage is always a concern.
One other big concern has been protein level but China demand for higher protein barley has helped in recent years.
Not that we should ignore others making a profit but it is not all bad for us in most cases.
Maybe bigger concern is world trade situation and protectionist sentiment.

[jazz]

For once I agree with dml. Not being socialist but bringing group marketing power together.

This is the bread my family buys. 2 loafs of these cost $9 after taxes. Looks to be about 16 slices in there. Approx 2% of a bushel of wheat went into that product. About a 12c to the primary grower who takes 90% of the risk.

Use your aginvest to buy Weston stock.

[chuckChuck]

Canpotex is the single desk potash marketing and logistics arm of Mosaic and Nutrien in western Canada.

Even the Sask Party likes this arrangement as it increases the value of potash and royalties.

But farmers prefer to compete against each other.

[farming101]

Canpotex is the single desk potash marketing and logistics arm of Mosaic and Nutrien in western Canada.

Even the Sask Party likes this arrangement as it increases the value of potash and royalties.

But farmers prefer to compete against each other.

Yes, it's working well....
https://www.cbc.ca/news/canada/saskatoon/nutrien-layoffs-sites-shut-down-1.5280327 https://www.cbc.ca/news/canada/saskatoon/nutrien-layoffs-sites-shut-down-1.5280327

[bucket]

With the recent changes in regulations (at least in AB), there is nothing stopping anyone from capturing a piece of that value added market, and farmer owned breweries are popping up all over.

Can you post a similar chart for raw aluminum vs a finished Boeing dreamliner, or copper/lithium in an iphone.

We are in the bulk commodity production business, where the business model is that long term prices will revert to the cost of production. Our COP is completely disconnected from the cost of a finished product.

Except every one of the costs are accounted for in selling the Boeing dreamliner or an iPhone plus a healthy profit....

And the people supplying or making the aluminum for the planes have been given a healthy subsidy just recently...

I don't know how people forget or ignore these announcements......

[bucket]

Also explain how the Saskatchewan government has 40 dollars an acre for farmers in an irrigation district but nothing for drylands farmers impacted by poor trade policies....or the impacts of black swan events that are unrelated to agriculture...for example how is it that I get caught up in the arresting of a Huawei executive when it has nothing to do with agriculture and I barely get cell phone service at the best of times....

[chuckChuck]

Yes, it's working well....
https://www.cbc.ca/news/canada/saskatoon/nutrien-layoffs-sites-shut-down-1.5280327 https://www.cbc.ca/news/canada/saskatoon/nutrien-layoffs-sites-shut-down-1.5280327

So the solution to world oversupply and low prices is to produce more at a loss? Sounds like the way many farmers try to solve the problem.