05/06 CWB Initials prove need for CWB Reform

[TOM4CWB]

Vader;

I suppose you are right in that it is not my wheat or barley that I grew, but the CWB/GOC's wheat and barley. Please excuse me for forgetting I work for the CWB/GOC.

In the end Vader;

Can the CWB stand alone against the US/EU on the monopoly issue...

Is it wise to believe the GOC will die for the CWB on the monopoly at the WTO; after Treasury gutted our 05/06 initial prices Vader?

Is the CWB monopoly more important than CDN supply management Vader?

On my $9 canola, when I deliver I get paid. On my $3.50 peas, when I deliver I get paid.

End of story, no excuses, it is my money. Further, I had the choice on who I did the business with.

[Vader]

tom4cwb,

I assume that you are intentionally missing my point. I did not say that it was not your grain. I said that after you deliver your grain to the elevator that it is not your money. The grain has not been sold and the money has not been collected. You have a receivable and that is all.

[TOM4CWB]

Vader;

You said: "after you deliver your grain to the elevator that it is not your money. The grain has not been sold"...

I must contract my wheat to the CWB, and do it for the largest percentage long before delivery.

WHY didn't the CWB sell it?

In my other grain marketing of non-board grain, normally give notice many months ahead to these marketing partners that we are doing a transaction... so they can plan and complete the transaction in an orderly manner.

I thought this was the purpose of the CWB contracts. Perhaps we should return to acreage/bu calls without contracts... if the contracts have no valid purpose in making CWB forward sales decisions.

But Vader, a reasonable person would question how and why the CWB does what they do.


Malt Barley for example.

We are killing our value added industry using the CWB.

Maltsters pay for example, $3.50/bu for malt bly to the CWB, yet the CWB pays the western CDN bly grower $2.50/bu.

When asked where the rest of the money goes... the CWB pointed out it was an "industry secret" and confidential commercially sensitive information.

CROSS SUBSIDISATION to the export market VADER. It happens in all CWB marketing pools. The EU and US are sick of it.

Again, what makes the CWB think the CWB will keep, in this WTO neg.round, the ability to abuse "monopoly" and hurt all of us?

[Vader]

tom4cwb, it appears again that you are ignoring the obvious. There is a difference between contracting a sale and collecting payment. First the grain moves and then the money comes. I am not aware of a situation where the money comes in before the grain goes out. Ergo you create a receivable between the time of the grain delivery and receipt of payment.

[TOM4CWB]

Vader;

When I haul a IP Canola to the end user, it is graded and I am paid. No receivables... I get a cheque cash it and that is the end. Same with my commodity canola, my human consumption peas..., I haul to fill the contract, then am paid, even with feed barley or wheat to a domestic feed user. Ownership transfers when it leaves my truck and is graded.

Why is this so complex when the rest of the world (except for you and the CWB) all can understand this simple principal?

Is it unreasonable to expect to be paid for 100% of the value of my product once it is out of my control and becomes the property of the CWB?

[Vader]

tom4cwb, the difference is simple. From your perspective you are selling your grain to the CWB and you consider them to be the "end-user". This is simply not the case. The CWB is selling your grain for you and is merely a conduit between you and the end user.

[TOM4CWB]

Vader;

I did not ask the Government of Canada to sell my grain for me. I have not willingly offered my grain to the CWB.

The Government forces me to sell milling wheat and human consumption barley to the CWB. They put us in jail if we do not.

The least the Government can do is not charge me a fee to give me my own money back after they confiscated my grain.

[Vader]

tom4cwb, this is the marketing system that we have. Yes it is supported by legislation and if you choose not to abide by the legislation you will find yourself on the wrong side of the law. I would guess that there are many people out there who unwillingly abide by speed limits and seat belt laws. When did you ever get to vote on that issue?

We can change our marketing system to whatever we want it to be through a democratic process. You have put your views to the test a number of times and it would appear that they have, on balance, been rejected.

You asked how I would change the CWB. I would have it completely de-linked from government and farmer controlled, much like Australia.

[TOM4CWB]

Vader;

Delinked from government means no Monopoly, is that right?

[silverback]

God it is disgusting to read how easily you can dismiss somebody's wish for freedom and property rights Vader. People abide by seat belt laws because there is a direct correlation between wearing a seat belt and not surviving a crash. If you can prove that there is a direct correlation between all farmers being forced to sell to the wheat board and the long term survival of the industry, you might get some credibility around here.

If the wheat board is a true democratic institution, let all the directors be elected by farmers. I don't care if they are farmers or not. I would think there are people out there who know more about the world grain market than most farmers, so let them apply for the position ( Just like the board of directors for public companies). Lots of local guys I know do not vote because they know that the guys that get elected are just for show and that the real decisions are being made in Ottawa.

[rowbott]

As some of you have stated, the pitifully low prices we receive for grain is a reflection of supply and demand. It likely isn't going to get better with improved production potential from Easstern Europe and South America. What we all collectively need to do is stop wasting energy complaining about the CWB and start thinking of creative ways we can use the CWB to extract a greater portion of the ever increasing 'retail' dollar spent on food.

As an example, the CWB is in a great position to be the collector of a flat rate retail levy on all products that have grain as an ingredient. This money could be distributed to producers through the pool.

I don't know about you guys, but I am so tired of hearing rhetoric about the inefficiency of the CWB. Ineffecient or not they are not responsible for the low grain prices we receive. They simply sell grain at world prices which are too low and will probably stay low barring a disaster in the world. (Hopefully in some other country)

I don't have hard facts to back up the following but based on our families ever increasing grocery bill, somebody is making even more money on food.

This could be the retailer, the processor the wholesaler or all of them at once. Each of their sectors are driven by supply and demand just the same as primary producers. They probably all wished their prices were higher too.

The challenge for primary producers to expand their margin is to find a way to get more money at the retail level, where the end product is bought and consumed. The only way I can see this happening is through a flat rate levy, similar to a GST type collection.

However, unlike the GST which disappears in the black hole of government, this levy would directly flow back to primary producers.

THe CWB, ABP, canola commission, APG could all serve a purpose in distributing these dollars back to primary producers.

I know many of you will be thinking of all the trade distorting aspects of this, and reasons as to why it wouldn't work.

For a change, why don't we all stop whining about the CWB and lack of government support, and start taking control of our business. It isn't the law that we have to produce something and sell it below our cost of production.

[Vader]

tom4cwb, AWB is farmer controlled and delinked from government and they still have a monopoly.