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    Voluntary CWB?

    Voluntary CWB not an option for grain marketing

    The Conservative Party's agriculture policy released today contains an option for western Canadian grain marketing that does not exist, says the chair of the CWB's farmer-controlled board of directors.

    "By backing voluntary participation in the CWB, a scenario has been put forward that cannot occur," said Ken Ritter. "You either have a single-desk marketing system or you have an open market system. Those are the actual choices -- and they are choices that should be made by farmers themselves."

    Ritter said the current democractic structure of the CWB allows farmers to decide how they want their grain to be marketed. In eight of 10 districts, farmers have elected CWB directors who explicitly support the single desk.

    "This should not be an issue decided by either foreign powers at the World Trade Organization or by party politics in Canada," he said. "This is clearly an issue for Prairie farmers, who have a right to choose the marketing system that suits them best."

    The CWB has carried the same message to Canadian trade negotiators who are participating in efforts to forge a world trade agreement. In that forum, the United States and Europeans are attempting to dictate how the farmers of Western Canada can market their wheat and barley.

    The Conservative Party's agriculture policy states that "western grain farmers should be able to participate voluntarily in the Canadian Wheat Board."

    "It is important to understand that this scenario could simply not occur," Ritter said. "Canadians need to make decisions based on realistic outcomes."

    Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world.

    What would be wrong with this? Why can't we make it the farmer's choice, but once you decide in the fall if you are going to go board or non-board, then you are locked into that decision for the rest of the year? I am not for or against the board, I just believe in smart marketing. People want the choice to market their own wheat, durum, and barley; let them see if they can do a better job than the CWB.
    I also believe that if, and it is a pretty big if most days, the CWB is doing the best job of marketing the board grains, then the farmers that choose to go their own way will not do as well as the board supporters. Like the last line states, the CWB is the largest wheat and barley marketer in the world, so they should have the best markets cornered. If they have the best traders in the business, then let them prove to all of western Canada that we are better off with the single desk.
    Like I said before, I am not for or against the CWB, I would just like them to prove themselves, and I would also like to see whether or not these anti board guys could actually make a go of it on their own.

    #2
    That is very funny. You can almost picture them in Winnipeg jumping up and down saying "no,no,no". Perhaps Ken and crew have a few skeletons in the CWB that they don't want the conservatives to find.

    How evil it would be to make the CWB compete to market my grain.

    Freedom, what a concept.

    Comment


      #3
      Compete...that is the word. Take 90% of the staff in Wpg and lay them off. Now you have just the actual traders and some admin, like any other grain company, and see what they are made of. If they are as good as they say, they will have the best prices. I just want to see the proof. AND, if you get rid of all the dead weight in there, and that includes 10 directors that make some huge coin, that puts even more money back into the pool. Not a bad idea!

      Comment


        #4
        Then I could pick a buyer who would actually pay me for my malt barley, what a concept, agree on a price, ship, be paid - like every other industry on this planet.

        Comment


          #5
          Please explain.
          There are already accredited exporters of grain.
          These companies can buy my grain through my marketing arm for export and resell it. They have to pay me what I would have recieved through the CWB. This keeps them from selling for less than than the CWB. (good for me) they can't use my grain as a lost leader.
          If there is more money out there than what the CWB is getting why aren't these companies selling all the grain this way?
          If it is because they have to pay me the same as what I can get buy selling it myself through the CWB then how is a open system going to be better for me.
          By me I mean all prairie farmers.

          Comment


            #6
            The problem is the CWB is not like other grain companies because it does not have its own grain collection or export system, if you grant them that you might be able to have them compete with multi-nationals. The other caveat would be that ADM's and Cargills would compete fairly and not undercut the CWB to put them out of business. After all under true market conditions the deepest pockets win. So after the CWB is run out of business by Multinationals who would you go to for a fair deal? The same people who are screwing you in the canola market? Or what about allowing the CWB to enter the canola market?

            Comment


              #7
              Agstar is right. This is why I am not for or against the CWB. I have worked for 2 different grain companies, one Canadian, and one multi-national. One of the things that most anti board guys don't realize is that, as bad as they sometimes seem, at least the CWB is working for the farmer. The line grain companies are working for their bottom line, and that alone. They don't care whether or not any farmers make money, as long as they do.

              Comment


                #8
                That doesn't sound too different from the CWB to me. The message I hear from them is "you have no choice, suck it up" Right Vader?

                How much does the federal gov't pay into the CWB to keep it going? Is it self sufficient? If not, maybe we could have some support programs similar to the U.S. and start competing head to head with a smaller beaurocracy?. I don't hear about farmers being driven off their land in the U.S. by the big bad grain companies do I? They seem to be doing pretty decent these days.

                Comment


                  #9
                  Silverback;

                  It was interesting that the leaders of Cargill and LDC at Banff ABC did not condem the CWB monopoly "single desk".

                  As stated above by WD9... the CWB is a risk reducing, profit center for any multi-national who is an accreditied exporter.

                  It is well known in the grain industry that CWB Board grain margins are MUCH greater than non-board grain profits.

                  I know that the best profit creation grain purchase for farmer owned inland terminals...

                  IS BOARD GRAIN.

                  Every terminal is trying to increase board grain handle.

                  This is all about increasing profit and reducing risk.

                  Great with me... just don't put the risk back on me... when I don't need that cost taken off my CWB cheque.

                  Competiton would force the CWB to do a much better job of risk management and marketing.... no question.

                  This would be best for all "designated area" grain farmers, right?

                  Supply Management folks... would not be happy... no question!

                  FEED GRAIN prices would go up... no wonder the CFA support the CWB monopoly so faithfully!

                  Comment


                    #10
                    SilverBack....

                    your quote, " I don't hear about farmers being driven off their land in the U.S. by the big bad grain companies do I?"

                    Are you kidding? At a pace that far surpasses what is going on in Canada. The grass isn't always greener on the other side. I suggest you do a little reading and research. See how much you would like an American system up here (minus the massive massive government top-up subsidies). Which, by the way, 90% go to the biggest grain farmers and intensive livestock operators in the U.S.

                    Comment


                      #11
                      Siverback.....

                      Let me give you a " for instance". My brother-in-law farmers in Montana. The grew yellow field peas. Averaged around 30 bushel per acre. He sold his peas this fall for $3.10 a bushel. Which, like the prices up in Canada here, would be selling at a loss. But his government, in all their wisdom, topped it up over $2.00 a bushel. Yes, a subsidy. A trade distorting, agricultural ruining subsidy. So don't look down South. And don't ever hope to model agriculuture in Canada after what goes on down there. It is not the solution.

                      Comment


                        #12
                        Lakenheath;

                        You do our freinds to the south disrespect.

                        My brother spent this fall helping harvest in MN.

                        They will have one of the best, most profitable years ever!

                        And I watch all the US state legislation that outlaws corporate farming... IT IS AGAINST the LAW for any corporation to control day to day operations on a farm in many US States.

                        Anti-competition laws in the US:

                        Make us in Canadian's laws, and enforcement of existing laws; look like multi-national corporate loving cheerleaders!

                        Comment


                          #13
                          wmoebis,

                          You say:

                          "They have to pay me what I would have recieved through the CWB. This keeps them from selling for less than than the CWB. (good for me) they can't use my grain as a lost leader".

                          Wow. You worry about the possibility of getting a price less than the CWB price. (I assume the CWB prices satisifies your $$ needs).

                          Conversely, I worry about finding a price higher than the CWB pays. (We can't exist on CWB prices)

                          What about those who get MORE than the Board pays? I know Farmer X very well, and he just sent a load of barley to the USA . Approx $9.00 per bushel. Bypassed Board marketing and pooling. No buyback. Complete with export license. Did it hurt anyone in the DA? I would think bottom-line farmers would be relieved to see that grain move out of an already grossly overloaded system As agstar says, "under true market conditions the deepest pockets win", and in this case, the farmer got paid by the deepest pockets. He wins. Nobody loses. Why would the Board not allow the license to export?


                          Here's the conundrum. If Farmer X had to buy his own grain back through the Board's marketing arm, and pay the difference between the initial price and the market price, all the money would be going into the pooling accounts, which Farmer X cannnot access, as he doesn't even have a permit book. The Board didn't spend any time marketing his grain. No pooling expenses. The buyer paid all the freight. Only the licensing is a cost to the Board, and it is a Federal Governnment expense, anyhow.


                          While sshieils claims "Voluntary CWB not an option for grain marketing ", I have observed that voluntary marketing happens all the time. Every load of feed that is sold to a feed mill , not only bypasses Board marketing, but it bypasses Board pooling. That's voluntary marketing, sshieils . Every time a registered seed grower sends a load of wheat, and bypasses Board marketing and Board pooling, that is voluntary marketing, sshieils. Voluntary marketing is alive and functioning, and so far, the sky has not fallen, has it ?

                          Meantime, the system quietly unclogs without your even realizing it!

                          Parsley

                          Comment


                            #14
                            parsley
                            If you read my post (me means all prairie farmers)
                            No I am not satisfied with the world price of grains. However I am satisfied that the CWB is getting as much on the world market as possable and are marketing with my best interests at heart. They don't have share holders (per say) that they have to be financially responsable to. Only ME.
                            Yes I am worried about getting less than what the CWB is getting for me right now. I am worried that if the big grain companies were to take control, that no matter what the world price of grain is I would not get my share as they have share holders to keep happy first.

                            Comment


                              #15
                              The only 'shareholder' the CWB must listen to, respond to, answer to, account to, is the Minister of the Canadian Wheat Board. That's the law of the land.

                              Not the farmer, not the grain companies, not the B of Directors. Not you, wmoebis.

                              Just the Minister.

                              The CWB answers to the Government.

                              You'll be pleased the CWB are able to give away your hard-earned money to political parties.

                              Better get a good nights sleep so you can get an early start in the morning. The CWB will need some extra cash for the election.

                              Parsley

                              Comment

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