Choice Matters Website

[charliep]

Just a note to make sure all of you are aware Alberta's website around Market Choice. I encourage everyone to visit and participate.

http://www.choicematters.gov.ab.ca/

[Incognito]

Congrats on the site, Charlie. Information is key to everyone having the knowledge to debate the issue.

It is difficult to have balance on an issue so divided in the prairies.

This will become a Supreme Court issue. Too bad our former Agriculture Minister didn't have the bal*s to deal with it in 1995 through the Western Grain Marketing Panel - we wouldn't be at the point we are today.

This is about economics, not politics and economics should be the driving force behind the debate.

Is that possible?

[crusher]

I had a breakfast meeting with Art Macklin (my CWB director)and several other local area producers. The agenda for the meeting was to allow producers the opportunity to express their opinions on the operation of the CWB. Most of the time we were listening to Art reveal the great work the CWB is doing for its sole benefactor-producers.

He concluded his speech (the whole meeting appeared to be just electioneering), about the lunacy of the Alberta governments pursuit of Market Choice. He wasn't giving it much concern because he was firm in the belief the CWB would be protected by the Feds or the Supreme Court. The end result would be a huge lawyer bill paid by you and me.

[crusher]

I had a breakfast meeting with Art Macklin (my CWB director)and several other local area producers. The agenda for the meeting was to allow producers the opportunity to express their opinions on the operation of the CWB. Most of the time we were listening to Art reveal the great work the CWB is doing for its sole benefactor-producers.

He concluded his speech (the whole meeting appeared to be just electioneering), about the lunacy of the Alberta governments pursuit of Market Choice. He wasn't giving it much concern because he was firm in the belief the CWB would be protected by the Feds or the Supreme Court. The end result would be a huge lawyer bill paid by you and me.

[Incognito]

The Art and Butch show will be the demise of the CWB.

[Incognito]

From Reuters today:

The European Union, under pressure at farm trade talks to abolish export subsidies, on Thursday gave one of its clearest signals yet it might happen, provided the United States and others took similar steps.

But the EU also wants U.S. food aid programmes brought into the mix, together with the state trading corporations of countries such as Canada, which hold monopoly positions in areas of local farm business.

"We have indicated that monopoly rights should end," Minch said.

[charliep]

Thanks for your feed back Crusher.

By now, most of you will have recieved the Market Choice Newsletter. Did the articles help your understanding of the issues around Marketing Choice from the Alberta perspective? From the perspective of someone who is not strongly rooted in either of CWB or market choice camps, what are the issues you would like to see addressed?

[exnaboe]

The CWB represents the only means, outside of supply management, where Canadian farmers act together to try to be price setters rather than price takers. So the Alberta Government believes that free choice is better. If things go the way they usually do this means that farmers will keep competing against each other until only the grain companies come out as winners.

[Incognito]

exnaboe:

Maybe you missed my earlier post....

This is about economics, not politics and economics should be the driving force behind the debate.

Is that possible?

Do you have proof that collective selling of your wheat and barley generate premiums on 100% that the CWB sells?

Charlie:

Do you or your government have proof that the CWB does NOT extract a premium on wheat from the export market on SOME of the grain it sells?

Keep barley out of this post...it is a no-brainer. They should NOT be marketing barley...period. Wheat my friend, is a different story.

Economics not politics....If either side wants to win this fight, that is what it has to come down to.

If not fight for the next 2 years and let the WTO decide and give us 6 months to adapt to a wide open market. And that way for sure, there will be more losers than winners.

[carebear300]

I am leaning towards the abolishment of the Canadian Wheat Board. After saying that if any of you people think that the Europeans and the Americans will do away with their subsidies I have some beachfront property to sell you in Saskatchewan. It isn't going to happen we have been down this road way to many times before. Both of the aforementioned entities believe that they are beyond the jurisdiction of the WTO and will do whatever whenever they want. Sorry I can't be more optomistic.

[TOM4CWB]

Charlie;

Just got back from the WRAP "Choice" mtg just SE of Camrose;

Good to see the issues brought forward;

The most compeling is that there will be a change in the CWB system, sometime in the future... we need to clearly think these options through... prepare for change...

Alberta's call for a 3rd party to issue export licenses was a very good point;

Contractual systems are already in place in the CWB system now... PPO's mean farmers must now think about more than just pooling, seperate delivery contracts are required;

Interprovincial movement was an issue brought up as a problem... from Sask to AB... I personally don't see it as a problem;

We have these same issues exactly happening today between non "Designated Area" BC and Ontario... movement of "designated area" grain into these areas is not any problem now... why should Alberta being added to the list change anything?

Much has been said about the Ab gov's spending on ads... the question was asked how much was spent in the past 10 years on CWB "CHOICE" activities... the answer was, how much has been spent by the feds/CWB promoting the monopoly?

Steve Snider gave a good presentation on Organic Restrictions... the surprising result was in backroom/washroom talk... most of the lefties admit that organic is getting a BAD deal... I expect the CWB has fully lost the battle on Organic wheat and barley at least... they just don't know how to deal with this problem yet. One thing leads to another...

THe more we talk these issues through... the clearer it becomes that the CWB is badly losing this battle on the issue of the moral high ground.

A big thanks to Alberta Ag in putting on a good, humble and constructive presentation in a difficult environment. It is amazing how many farmers love to blame change and hardship on someone like the Alberta Gov... it was really easy for them to do...

My single astonishment in retrospect is this;

It is 2004... and we still don't have CWB wheat/barley cash prices that reflect realistic daily international market conditions. We are all huge losers on this point... a point that does not even question the stature of the CWB monopoly. The PRO/pool is still King at the CWB!

WRAP should be thanked as well for starting the process of thinking and working through these CWB issues...

[charliep]

Thanks for comments.

Incognito - Hard to prove a negative when you lack information on actual trades/prices. Observation would say the CWB does collect premiums on Japanese business and perhaps European. These markets represent about 10 % of the wheat ex durum pool size.

The CWB goes out of their way to say the domestic and US markets get charged a fair price so there is no premium here.

Both these markets have other benefits they get which supply agreements that carryon through a full year and have committed/specific quality guarantees over the whole period. These commitments have value and in my opinion, eat into whatever premium the CWB argues they get. This is the main experience of 2002/03 and was the major cause of the deficit.

All other markets are an open question that needs some answers. Based on observation the world market is extremely competitive, I doubt the numbers would should any premiums that do not relate to other factors such as quality characturistics or supply agreement benefits.

Durum is an even more interesting question. The CWB may be able to argue they can support international durum prices by holding back supplies - some sense I can't argue with the comment that this information is available to the market/impacts buyers negotiations. The downside is that the CWB also makes decisions about market access with farmers currently likely to carry 30 % of their crop into 2004/05 to be sold at whatever price is available.

[charliep]

Just a note to highlight the CWB response to the Alberta suggestions.

See the entry point into the CWB webside.

http://www.cwb.ca/choice.html

[katoe]

Charlie If this is about choice and not trying to get rid of the cwb, then where is the choice to test market peas and canola on the cwb for those who have the desire?

[charliep]

I don't think anyone would have a problem with this as long as it was an alternative and not the only choice. Would farmers use this tool? Why?