Agricore United delegates support Market Choice

[AdamSmith]

I just returned home from the Agricore United annual meeting in Edmonton (Feb 11 & 12).

The following resolutions were passed by the delegates.

Be it Resolved the AU lobby bot the CWB and the federal government to allow farmers within the CWB's designated area the right to choose where and how they sell their wheat and barley.

Carried with 67% support.

Other resolutions dealing with the CWB monopoly were passed as well.

Be it resolved that AU lobby for barley, feed and malt to be removed from the monopoly mandate of the CWB.

Carried with 73% support.

and; Be it Resolved that AU lobby the federal government to hold a plebicite to allow farmers to determine whether the CWB should become a voluntary marketing agency that competes for their business or whether its monopoly powers should be retained.

Carried with 73% support.


My personal observations were that the farmer delegates were very pleased with these outcomes, YET I felt the Board of Directors and the management of AU were not quite as thrilled. It will be interesting to see whether the company, AU, follows through with the clear wishes of the delegates and pubicly endorses marketing choice or whether they try to sweep this outcome under the rug?

My personal opinion is that if AU doesn't back their own delegates on this issue is that what happened to Alberta Wheat Pool in the mid 90's will look like a fart in the wind compared to what will happen to AU. But that's just my opinion.

AdamSmith

[TOM4CWB]

Adamsmith;

Excelent report...

I believe the CWB KNEW this was comming.

However, the discouragement of many farmers on BSE/Multi-nationals is holding the CWB's support for many grain farmers... as fear is being used to leverage CWB support for the monopoly. How long this will last is a good question.

Just wanted you to know, that the battle for market choice is just beginning... not just about over!

Logic will not win this battle, as emotion has driven it to this point, it is too much to expect anything but a huge emotional fight.... but;

One would have thought ending the crow payment would have evolked much more emotional retribution than it did...

Could this be a cumulative emotional issue...?

[Incognito]

Adam:

The AU management now have to suffer the backlash at the CWB. Backlash = bottom line. Thats the whole crux of the problem to begin with. Change won't occur when the CWB holds the key to moving grain - transportation - and the ability to punish those that don't agree with them.

Sounds so Chretein-like doesn't it.

Not to upset you Boone, but the Board bullies just as big biz does - and they also forgot where they came from and why they are there. Market power is good - totalitarian power is not.

[JACKFLASH]

The Agricore delegates have spoken. so the Agricore has to decide whether to abide by their members or risk the migration of customers to other companies, if the support and commitment form the AU brass doesn't come.

It's terrible to have deal with the CWB big stick coming down. If Agricore wants to do the right thing.

[TOM4CWB]

Incognito;

Looking through the CWB Financials for 2002-03 (yes you can get them faxed to you) they depreciate cars on the fixed line method... in 3 years!

I know the CWB bought a new car in China for well over $100,000, and they depreciate $33,000 per year? WOW employee benefits must be a doozer!

[Incognito]

Free Cars in Three Years!...wonder what the buyback is?

I'm more interested in the interest income that they claimed over the last 3 years. Is it still there?

[charliep]

Are the financial reports for the 2002/03 crop year publically available? If they are, where are they posted so shareholders (read people who sold grain in the 2002/03) can review them? Why isn't financial information around these reports being publically presented at the CWB accountability meeting?

How is the information presented in the contigency funds for the producer pricing options? How much (if any) was retained in these accounts?

[charliep]

An interesting paradox is we are having this discussion in a thread involving Agricore United (didn't start with the CWB except as the topic of a resolution). AdamSmith - Was there discussion of the financial performance of Agricore United at their annual meeting? Was financial information provided to shareholders well ahead of time?

[AdamSmith]

Charlie,

The 2003 Annual Report was included in our delegates package.

Yes, during the shreholders portion of the meeting financial performance was presented and discussed. The annual report was mailed to all shareholders prior to the meeting.

[TOM4CWB]

Charlie;

The CWB faxed 23 pages of the Financials to those who were asking for this info Friday the 13th. After pressure on Minister Alcock/CWB call centre, the CWB decided to release the info.

Interesting that the Contigency fund is now over $17 million ($5 mil from Barley interest again)to the good... but is counted as a liability on the balance sheet!

What a strange web we weave...

[boone]

Adam Smith: So does the AU passing of motions still look like a kangaroo court, as the old UGG system did? Any time the directors have an agenda it would take on the life of a Union Convention with all the speakers at the mike staged and the motion to close as well as the seconders could have been recorded before the subject was broached. It looked more like Alice through the looking glass to me. Actually for them to lay low for two years must have taken a bit of patience on U.G.G. involments part, kudo all around. Just curious, comments if any.

[AdamSmith]

boone,

I would have to say that these resolutions in particular were definatly not part of a board of directors plot. The mover of the first choice resolution was hardly a plant. An older Hutterite gentleman representing Fort Macleod Alb. was neither lengthy at the mike nor polished. In a nutshell when asked to speak to the resolution he said he agree's with Minister McClellan (She spoke to the delegates the previous day) and then sat down. All other speakers who spoke in favour were impromptu as well. After two elderly gentelmen were at the mike opposing the resolution, I was the first to the mike (without any proding from anyone)to speak in favour. About four or five other delegate also spoke in favour, then the question was called.

As I said in my initial posting, I believe the majority of the management and directors wish these resolutions never passed. I have no definitive proof of this, It's just a gut sense.

[AdamSmith]

I just visited the Agricore United web site and there is no mention of this historic happening, at least as of yet.

Back when it was a Ted Allen operation, a news release would have been issued on Thursday (the day the resolutions passed)reporting this watershed event.

As I see it, if there is no news release by Tues. Feb 17 at the latest, this will be a clear sign that the company wants to sweep this event under the rug.

Pity

[boone]

Adam Smith: this does ring true here and just to correct and separate here the press release would have been in the hall well before the delegates had voted. Been there watched that? Lorne Hein 1985, they should have locked us all in until the vote was taken, small bladders can be quite an eyeopener sometimes. anyway glad to see they can't control the rank and file no matter what they have chewed up and regurgitated for us to swallow.

[frustrated1]

AU still exists? In our area they have two high throughputs and something like 26 sales types. They've managed to chase away even the diehards that bled wheat pool green. Once the wheels are under the grain it's moving up to 100 or more miles away, no excuse for that. We've got half a dozen small grain andor chemical and fertilzer companies start up in the past 2 years. How in all of God's green earth should they have half a hope of being competitive? And yet they thrive. Around here, absoluetly nothing AU could come up with would surprise anyone.