grain company revenue

[wmoebis]

I wonder how much gross revenue the grain companies make off our board grain. IE: handling, cleaning, screening sales, freight insentives, blending for grade improvement, etc.

[wedino]

Don't know gross revenue, but SWP tariff on malt barley is $15.15 compared to durum which is $8.41. Why the huge difference?

[wmoebis]

Good question that should be asked to the CGC as they okay the prices for us. and we have no say. It seems to me that the CGC does just what ever thier old pals in WPG's head offices want down at thier white colar dinner meetings eating our bread.

[charliep]

The majority of western Canadian grain is handled by two publically traded grain companies. You can review their financial statements to determine the profitability of the business.

On the malt side, I would compare the cost of running what amounts to a segregated/identity preserved program for malt barley versus a blending program for wheat. I would also look at the risk of running a street malt program.

Are there things that can be done to improve the efficiency of the current grain handling system? Just to put a plug in, Quorum has a net back calculator that puts a number of elevator bids back to a farm gate price so you can compare them. It is worthwhile to work through the excercise.

https://www.netback.ca/HomePage.aspx

[GrainVac]

If these guys are making so much money how come my shares keep falling in price?

[Vader]

How much do they pay their CEO?

[charliep]

If owning bricks and mortar (or cement and wood) is profitable as indicated here, should the CWB be encouraged to invest in grain elevators.

I note the farmer/community investment in inland terminals. Many of these are profitable.

The idea is to find a grain company that can be a business partner and provides the services/business opportunities needed by your farm.

[wmoebis]

I believe there is a way that we as producers can capture more of the value of our produce. We have managed to streamline our each individual enterprise to become as efficiant as we possably can be. We have came up with inovative ways of co-operative buying fuel, chemical, and machinery, continuous cropping and chem fallow to cut our inputs. We have increased our production so that we are producing more and a wider variety of products.
Under our current system of single desk marketing we have an oppertunity to expand our innovation and control to include our middlemen in our grain industry.
It seems obsured to me that, with todays high tech. that we need so much staff and middle men handling our finacial affairs in grain sales. IE: why do I need a secratary at an elevator to make me a cheque then make a bill to the CWB so a secratary at the CWB can pay the grain company? With todays tech we should be able punch in the numbers at unload and the CWB pay me direct. Why do I have to pay freight and cleaning, sometimes months, before the grain is cleaned or shipped, that money could be sitting in my pool account collecting intrest for me instead of the grain company.
If the CWB would allocate cars to producer owned elevators and producer car loading facilities to the extent that these systems were running to maximum capacity 24/7. Then the balance of grain that we could not handle would be tendered to the multi national companies to the lowest tender for elevation, cleaning etc. True compation between grain companies.
Furturemore we could use the example of West Cental Road and Rail where the grain is graded etc. in my bin by a third party. The cheques are made out by the board.
The frieght, cleaning, elevation and all other associatd costs would be paid by the board after the work is done. Till then they would be collecting the interest. Any blending that was done for grade improvement or to the bottem of grade/sales specs. would be at a direct profit to the pool accounts. Instead of the grain companies profiting from one pool account and blending with another for thier financial gain. The money that is made from sellimg the dockage would be ours not the grain companies because the grain companies never take ownership of the grain it is all controled by us through our marketing arm The CWB.
I know that many will say get rid of the CWB instead, but before we throw out the baby with the bath water we had better try come up with inovative ideas to try, because if it didn't work we could never go back.
I believe that if prices ever did go up our costs would also and we would be no further ahead unless we take control of OUR industry. Every dollar that can be made from ground to port should stay with us and we only pay for the work that we need hired.

[Ron]

Did you know the grain company has 30 days after they deduct the canola advance from your cheque to send it in to the CCGA? Just a little interest free bonus for them. My outstanding advance was deducted on Dec 1 and I just received a letter from CCGA saying if they dont receive it by Dec 31 I am in default (offered to fax them a copy of my purchase receipt but it doesnt matter). Waiting to hear back from Agricore head office regarding when they will transfer the payment. Does CWB advance work the same? That would add up to some very large numbers.