Federal transfer to the CWB

[Zaphod]

Here's an interesting tidbit. Go to www.merx.com (the feds project tendering web site) and enter 114678 in the search box. You'll find a fascinating project posted there.

Essentially, AAFC will be paying the CWB $100,000 for the directors and CWB staff to go down to US farm groups and plead the CWB's case. It will be gruelling work though -- the directors will have to provide written notes of their meetings in the US.

Even though the project is posted on this tendering site, it states that the money will be going to the CWB unless someone "more qualified" speaks up first.

I know the money is small potatoes in the grand scheme of things but it kind of steams my shorts to see the CWB getting paid to do its own advocacy.

[charliep]

Good reading. Is the CWB picking up the tab or the taxpayer?

I will clip and paste the interesting parts. Appologize for putting all in but is worth the read.

OBJECTIVE
Agriculture and Agri-Food Canada intends to award a contract to the Canadian Wheat Board (CWB) for advocacy efforts in the United States. This work is part of the US Trade Advocacy Issue and supports Canadian wheat market interests.

CURRENT REQUIREMENTS

Scope of Work

On-going CWB advocacy in the U.S. supports Canada’s overall U.S. advocacy strategy by defending Canadian wheat market interests, reducing wheat trade irritants by explaining the Canadian grain marketing system and generally working towards harmonious bilateral relations in the grains sector. It complements AAFC’s (and Foreign Affairs’) efforts and enhances resources devoted to agriculture in U.S. consulates. The key targets of the advocacy meetings are U.S. farmers and farm groups who might be possible
petitioners in trade cases or supporters of U.S. trade actions against the CWB.

Farmer-elected CWB directors, accompanied by CWB staff, will meet with, and present to, U.S. farm groups from major wheat-producing states to educate and increase awareness of the true nature of the CWB, thus countering misconceptions about it.

In addition, the CWB will bring U.S. farmers and Canadian farmers together to promote relationships between Canadian and American farmers, demonstrate Canadian farmer
support for the CWB, and create a forum for farmers to discuss/debate issues of
common concern.

These meetings, presentations, and forums are intended to:
• Explain to U.S. groups the CWB’s governance structure, mission, and operations;
• Demonstrate that the CWB is farmer-controlled and run, as well as supported by the majority of western Canadian farmers;
• Dispel myths around CWB sales activities by explaining the global sales environment and the CWB’s selling strategy and selling planning process;
• Identify and discuss issues of common concern; and
• Explain that in the absence of the CWB, Canadian wheat and durum exports to the U.S. will increase – which is contrary to some U.S. wheat and durum producers’ goal of reducing Canadian wheat and durum exports to their market.

It is intended that, over time, this advocacy strategy will:

• Protect U.S. market access for sales of Canadian wheat and barley;
• Minimize farmer (and thus political support) for future trade actions against the CWB;
• Promote relationships and collaboration between Canadian and American wheat and producers

Deliverables
• Summary of reports (Components 1 and 2 of Detailed Project Budget)
• Summary of meetings held with farm leaders, to include
• number of participants
• Whether CWB received an invitation to return
• Any media coverage received
• Copies of any presentations made
• Summaries of attendance at conventions
• A survey of farmers who attended the Farmer Connections program (Spring 2006)
• A half year report (submitted in December) that includes the number of meetings held to date and the number of meetings projected for the next six months, estimates on the amount of funding required to complete the project.
• An annual report, to be submitted in July 2006 (in accordance with the crop year.)

CONTRACT PERIOD

Current plans are to award a contract with the expected start date to be on or about November 2, 2005 with an annual report to be submitted in July, 2006.

CONTRACT VALUE

It is intended to award a service contract to the CWB for an amount not exceeding $104,250.00 Canadian dollars (GST excluded).

SUPPLIER

Canadian Wheat Board (CWB)
Winnipeg, Manitoba

JUSTIFICATION

Only the Canadian Wheat Board is believed capable of carrying out this work. As an industry organization, it is best placed to coordinate the efforts of individual farmers and determine an overall strategy, messaging and approach in accordance
with the Canadian government’s long-term goals. As a non-government organization, they are viewed differently from government and this often ensures a warmer reception.
Entering into a formal agreement with the CWB represents the most efficient way to deliver our message to US stakeholders in the wheat industry.

Section 6 of the Government Contracts Regulations is being invoked in this procurement as only one person or firm is believed capable of performing the contract.

Article 1016.2 (b) of NAFTA is applicable on the basis of limiting tendering because the goods and services can be supplied only by a particular supplier and no reasonable
alternative or substitute exists. The above reasons can also be found in article 506.12 (b) of the AIT.

Suppliers who consider themselves fully qualified and available to provide the services described herein, may submit a statement of capabilities in writing to the Contracting Authority identified in this Notice on or before 14:00 hours, Tuesday November 1, 2005.

[charliep]

I find one sentence particularly interesting.

• Explain that in the absence of the CWB, Canadian wheat and durum exports to the U.S. will increase – which is contrary to some U.S. wheat and durum producers’ goal of reducing Canadian wheat and durum exports to their market.

Someone can help me understand this statement and the implication for farmer marketing/pricing opportunities.

[parsley]

Looks like the taxpayer is picking up the tab. Same old.

Looks like they're saying Western grain exports to the USA will increase if the Board is trashed. Yup.

Anyone want to get rid of a big pile of grain?

Shall we put together a counter-trip and apply to the Feds for funding? Sort of a "clean-up follow-up" at every CWB presentation in the US? According to the Feds, we should be able to sell more grain and we all want that!
Good work Zaphod!
Parsley

[TOM4CWB]

Charlie;

What about the Aberta Barley Commission, Grain Growers of Canada, Western Canadian Wheat Growers...

CAFTA could also be a capable party to supply the contract.

THis only is a problem because the CWB is considered the only eligible person... the feds should be paying to encourage US market access for wheat and barley... just not to the CWB Monopoly, and to lie on top of it all!!!

Or does the CWB intend to continue limiting sales to the US...?