Durum

[lakenheath]

Prairie durum wheat production hit 5.9 million tonnes, an increase of 19 per cent over last year. The 10-year average is 4.6 million tonnes.

Question for Tom:

How would we be better of marketing this record durum crop without the CWB's involvement? Keeping in mind that there seems to be a glut of durm around the world right now. Seems to me that pooling the Canadian durum would help considerably in this situation in regard to price extraction and keeping mass amount of grain out of the bottleneck.

As an aside, our solution to this next year will be higher yielding durum variaties, new fungicides, improved micro-nutrient packs and better herbicides for durum. Why? So we can grow more and keep driving the price down?

[TOM4CWB]

Lakenheath;

I asked before... will ask again.

What will other nation states do about Durum production?

Will any one else reduce production... let alone hold a spot in the line to allow Canada (CWB) to sell durum... even if we didn't grow one tonne next year?

The ONE TONNE CHALLENGE if you like!

Now... for the folks with a good chunk of last year's 04 durum left... let alone piles on the ground from the 05 crop what exactly are they to do?

They can't even build a durum processing facility and use their own product!

Constructively... does the rest of the world even care if the CWB doesn't allow exports?

Fact is... they would be grateful... and all will get more for their durum... if we do not market one tonne of the 2005 production grown in the "designated area".

[Vader]

Considering that Canada has 60% of the world market in durum and sells to a majority of the worlds milling durum processors, I don't see what impact the production levels in other countries will have on our share of the market. In fact we need to produce very little durum next year to supply that market. Might be a good year to plant some green manure crop.

[silverback]

Is that supposed to be funny?

[TOM4CWB]

Vader;

All wheat is estimated down $3/t in Australia... except Durum, "the estimated return for Australian premium Durum was held unchanged at A$234.50/ton."

Guess what is the most profitable wheat to grow in Australia? DURUM.

From the AWB;

"General Manager AWB International, Sarah Scales, said despite international hard and soft wheat prices falling by up to $6/tonne in the past week, AWBs sound management and hedging programs resulted in a reduction in new season EPRs of only $3/tonne.

She said base rates had been lowered for most 2005/06 pay grades, with APH down $3/t to $225.50/t (FOB, GST exclusive). Benchmark APW is down $3 to $188/t, while top grade durum, APDR is unchanged at $234.50/t.

Australian Soft wheat ASF1 has been reduced by $4/t to $180/t (FOB, GST exclusive).

AWB has made some minor adjustments to the Golden Rewards protein scales for the 2005/06 AWB National Pool, increasing discounts for hard wheat pay grades with protein levels between 6% and 10%.

Meanwhile there has been no change to EPRs for the 2004/05 AWB National Pool.

Ms Scales said the pool prices reflected declining in US wheat futures values, which have come under recent pressure from increased global wheat production.

“The US Department of Agriculture recently released its latest supply and demand report which increased global 2005-06 wheat production estimates significantly,” Ms Scales said.

“These revisions follow increased production numbers for Australia, Canada and China, and saw US March wheat futures hit new contract lows on Friday.

“Adding further pressure to market is the general lack of positive global exports news and a strengthening Australian dollar.”

Despite these challenges, the AWB National Pool has managed to lower the exposure to growers and protect the value of the national pool.

Ms Scales also reminded growers that the Guaranteed Access Dates for the 2005/06 Pool were nearing at Brisbane, which is scheduled to close from December 14, 2005.

She urged growers who want to guarantee access to the 2005/06 No 1 Pool to arrange for their wheat to be delivered to the National Pool as soon as possible.

The next AWB Pool Update will be on the 19th December 2005. The following update will be January 3 2006."



I note Vader.. there is no refusal to take grain from those offering it to the AWB.

Just; "arrange for their wheat to be delivered to the National Pool as soon as possible."

[Vader]

I note Tom, that Australia produces, (if I remember correctly) about 700,000 tonnes per year of durum wheat. It could be that the CWB earned in excess of $235 per tonne on its first 700,000 tonnes. But then cwb marketers had to find markets for another 700,000 and another 700,000 and another 700,000 and another 700,000. So not exactly a fair comparison.

[TOM4CWB]

Vader;

I note the AWB is going for 40-50mmt of wheat / durum production over the next 5 years.

Double the production over today.

SOmething to think about!

Where you think we should cut our production in half...?

[Vader]

Tom, how much more grain do we have to sell and how much more must we lower prices before we become profitable?

[TOM4CWB]

Vader;

Shouldn't this be the decision of the "designated area" durum grower?

In Canola this is certainly the case.

I note the CWB contracting system is corrupt.

If I had any inkling the CWB was not going to take 100% (some number under 99%) then I could overcontract tonnes... reduce that contract till I had the actual 100% done after the fact, as we are allowed to reduce tonnes if the CWB reduces tonnes.

So many games to be played... and directors get the inside track ahead of everyone else.

Not fair at all!

[Vader]

tsk, tsk, tsk, Tom. That is VERY nasty.

Should farmers get to make that decision about how much durum to sell? That is the basis of the debate. My position is no they shouldn't because they simply drive prices down further and further.

Corruption? Tell us tom, is that how you respond to the system? Certainly within any system there will be those who will make it their objective to bypass the rules. It is the efforts of those people who will drive the system to put in place more rules, and more rules, and more rules.

Please explain Tom, to all the anti-cwb agri-villers exactly how to work the system to make it corrupt.

[agstar77]

T4, these allegations of corruption are pretty low. These are certainly not in line with keeping these dicussions civil. Who are you so angry with? I have nothing but respect for farmers who would spend so much time trying to do their best for all farmers and get nothing but abuse from a few paranoid individuals. If you have a beef with present system, criticize the system, not the people running it.

[lakenheath]

Agstar. Don't be so sensitive. Vader was merely replying to Tom's thread. Let them debate. It is very interesting from the outside looking in. I, for one, am on the fence with many of these issues. As long as Tom and Vader are not insulting each other's mothers then let them debate. It is good and healthy.

As an aside. Now here is a little jab. I like the irony in Tom admitting he lies about his tonnes yet runs a Christian Youth club.

[wd9]

lakenheath, go back and read T4's post again and note the use of if and could.

[TOM4CWB]

Lakenheath;

Why do you accuse me of cheating...!

Our farm did not grow any of the crops the CWB limited delivery on this "A" series in 2005.

We grew the CWB IP contracted grain... which the CWB assured us up front they would take 100% before we grew it.

I was simply noting a fact... and emphasising the irony of CWB directors NOT being allowed to use CWB PPO contracts... while at the same time...

Leaving a gaping hole a Mack truck could drive through in the Code of Conduct/Conflict of Interest Guidelines.

Here is what I said AGSTAR77;

"If I had any inkling the CWB was not going to take 100% (some number under 99%) then I could overcontract tonnes... reduce that contract till I had the actual 100% done after the fact, as we are allowed to reduce tonnes if the CWB reduces tonnes.

So many games to be played... and directors get the inside track ahead of everyone else.

Not fair at all!"

I did not personally accuse any director of doing anything illegal...

The fact there is nothing illegal about an immoral CWB system was my point in the first place!

The CWB is supposed to honour the "A" series contracts... they accepted 40-50% of the contracted amonunt before rejecting 20% of the delivered amount!

The CWB does have 18 months to market the grain committed by growers under them. Yet after the CWB deciding to accept the contract... the CWB Directors went back on the contract.

THIS is wrong. This is Immoral. This is not an ethical way to run a business...

The fact is THIS action ran the directors square into the CWB Code of Conduct/Conflict of Interest Guidelines... and most CWB directors didn't have a clue... or even think twice about breaking their own bylaws.

We have a problem...

The fair application of the laws of Canada.

This is my job to bring it to Vader's attention... and your attention.

DO I MAKE MYSELF CLEAR THIS TIME?