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CWB Market Canola

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    CWB Market Canola

    From this weeks Western Producer

    "The Canadian Wheat Board could do a better job of marketing canola than the canola industry, says a group of Manitoba farmers.

    They have been pushing the Manitoba Canola Growers Association and the wheat board to consider having the board set up a voluntary pool for canola sales.

    "We don't think there's anybody aggressively selling export canola," said farmer Jim Green after the MCGA annual meeting during Manitoba Ag Days In Brandon.

    "We're recommending that somebody else, (for example) the Canadian Wheat Board, on a voluntary basis, market canola."

    Green and like-minded farmers proposed a resolution at the meeting calling on the MCGA to consider all options for boosting canola marketing so that farmers' prices can be improved.

    Although the resolution does not specifically mention the wheat board, it was the focus of the arguments during and after the meeting.

    No farmers argued against the resolution, which did not commit the association to any particular proposal, nor did pro-free market members raise an objection. Afterward, some quietly chuckled about what they considered to be a hare-brained scheme to involve the wheat board in another crop.

    Others were more optimistic.

    Former CWB director Butch Harder, who won a director's seat with the MCGA at the meeting, said in an interview that he's not sure if a voluntary canola pool could work or is legally possible.

    "A voluntary system cannot be as effective as a monopoly," said Harder, who added there might still be benefits.

    "The wheat board could do something for them on basis levels, could arrange transportation, and it could (give the board) more than just wheat to sell."

    Green and others met with wheat board officials before the meeting, including chief executive officer Adrian Measner and farmer directors Bill Nicholson and Bill Toews.

    Wheat board spokesperson Maureen Fitzhenry said management and directors met with the farmers' group, but that does not imply an endorsement of the idea. The board meets often with farmers who want to talk about new ideas.

    Some canola growers have long called for the wheat board to market canola. But canola grower organizations have been dominated by free market thinkers who shy away from government or regulatory interference in the industry.

    Green's group's approach to the wheat board was done without MCGA involvement. He and his colleagues have also contacted other farm groups across the Prairies to talk about the idea.

    Green believes the board could not include canola in its mandate without first getting approval from the federal government. That would probably not happen unless a farmer group, such as the MCGA, officially requested it.

    Canola Council of Canada president Barb Isman cautioned farmers against thinking a lack of marketing and salesmanship is the reason for low canola prices.

    The council and grain company marketers are active in overseas markets trying to boost sales, but discriminatory tariffs and other trade barriers cripple canola's access in most foreign markets.

    "Is what was proposed (in the resolution) going to resolve opening the EU market and opening the Chinese market?" said Isman.

    "We've been in Japan; we've been in Dubai; we've been in China; we've been in Pakistan. The problem is that we have artificially low market access."

    #2
    Make me puke.

    The board can't handle what their doing now. Another drop in wheat PRO's while Kansas makes five month highs.

    I've contracted a 1,000 tonnes of CPS and haven't shipped a kernel.

    Make me puke.

    Lucky there wasn't a lynching at the CWB farmtech booth today.

    Comment


      #3
      Our Canadian crushing industry needs expansion and serious investment to meet future needs of the world's healthiest oil and also for the soon to be realized demand of canola based biodiesel with the cold flow properties to be a success in Canada's environmental challenges.

      Our transportation system needs huge efficiency gains and cpapacity to prevent loosing 1 to 2 million tonnes of sales from lack of ability to deliver product. Board pooling is the last thing the canola industry needs which would only scare away industry and begin eroding the existing value added sector.

      Yup crusher, makes me puke too. People need to realize it is not the sales that is the problem, its getting the goods to the customer, that is where the efforts of government and industry need to be spent.

      Oops, just barfed again.

      Comment


        #4
        So, Barb Isman blames international tariffs for canola's crappy price? Well, what is she going to do about it? It must be nice to collect her salary, without regard to performance in removing these trade barriers, or finding new markets.
        Also, why is it that the domestic crushers cant pay me more for my canola? Apparently they are making $80-100 cdn per tonne on crush margins. What is the Canola Council doing about this? All the Canola Council of Canada has done in the last 10 years, is promote the acceptance of $6 per lbs GMO seed. Terrific Job! Now we produce 50 bu canola, our input costs have soared, and lost the "premium markets" including the loss of the EU market, that the Canola Council deemed "insignificant" in the mid-90's.

        Comment


          #5
          Jman;

          We have lost over 1mmt of sales of Canola this crop year it was indicated at our Farmtech meetings in Edmonton.

          Transportation obviously is the bottleneck... and just like a closed border on beef; a transport restriction on exports will obviously cause crushers to gain big time.

          We need more crushing capacity... can we assure supply for 10 years into the future to pay for these needed plants?

          Would we as farmers take 10% of our Gross and invest in value added and transportation/Handling?

          Question for the CWB:

          Why hasn't the CWB formed a new gen C0-0P and bought the Excess Vancouver Terminal; at the same time we could build new crushers for biofuel?

          I heard that CWB hopper cars were/are being used to haul potash. Is this true?

          Are we as farmers willing to put our money where our mouth is... or are we only a bunch of spoiled brats who have a hobby of complaining... with no real intention of solving any of our real problems?

          Isn't this the CWB reality today?

          Comment


            #6
            I agree with you TOM4CWB. Someone needs to operate that additional terminal in vancouver. perhaps the cwb can ask its farmer supporters for an investment 'check-off' for each tonne handled thru the terminal. Eventually converting these funds into shares. There are plenty farmer owned terminals in sk an ab, why isnt there a farmer owned port terminal?

            Comment


              #7
              Jman re: they are making $80-100 cdn per tonne on crush margins. What is the Canola Council doing about this?

              What do you suggest they do about it?

              Comment


                #8
                If the crushers are making $80-100 per tonne and running at full capacity, obvoiusly our canola oil is in demand. What has the council done to promote the crush industry in Canada to international investors, perhaps inticiting some investment into our local communities. Where are the bio diesel plants? W. Canada is way behing the EU and the US in developing this industry.

                Comment


                  #9
                  To have the yields in the last 2 years has been an amazing coincidence. Throw that in with record veg oil production worldwide and well, price at the farm gate goes down. Average yields up until this year have matched quite well with export and crush capacity providing farmers with a great return on canola for many years.

                  Having good crush margins will be an incentive for industry to invest in crush capacity along with additional needs for biodiesel production making those business decisions easier. Crushers have seen only a profit roughly 3 out of the last 6 years.

                  Farmers in my opinion have reacted with the very short term in mind completely ignoring the long term gain of investment by industry. This takes time to ramp up.

                  In regards to biodiesel, Canada has not had a renewable fuel standard or production incentives like those other countries you mentioned and has us way behind. If Canada won't match the US incentive of 30 cents per litre, it is unlikely industry will invest in Canada with plants lined up across the border. But yeah, every dollar provided to Canola organizations like the Canola Council is being spent with the most impact in mind. Want more done? Like Tom4CWB asked what are you willing to spend to ensure this industry moves forward? 1 buck, 2 bucks, 5 bucks a tonne. Maybe nothing, there is always someone else isn't there.

                  Jman, the trouble is farmers don't want to hear the answers, answers of blame, like towards Barb Isman, are soooo much easier and media worthy, oh yeah and make marketing with the CWB seem like the only alternative. Oh whoa is us, CWB save us!!!

                  Spin, such a destructive force to those who work their butts off for this industry realizing no good deed goes unpunished.

                  Comment


                    #10
                    wd9:
                    I agree with you that we as farmers need to invest more into developing our industries, i.e. check offs to support plant breeding, market development, lobby efforts, new gen co-ops, etc.

                    It's amazing how we load up the pick-up truck with $50,000 of chemical in a single visit to the input supplier, but too cheap to increase our relatively small check-offs.

                    Austrailian farmers apparently are way ahead of us in their finanial commitments in these area, and I think it is starting to show as they expand their export markets, with improved products.

                    Comment


                      #11
                      Definitely, for a 2 billion dollar industry at the farm gate and 6 billion at the plate we need to invest more. By we, the whole industry, crushers, exporters, processors, farmers, gene jocks, all of us. The GRDC (Australian model) is not all peaches and cream, there are some major issues with that system too, like investment by private sectors in breeding etc.

                      Your mention of WTO is a great example. Looking at the grains and oilseeds representation in HK at the ministerial meetings it was estimated the budget for lobby to be around $250,000. For the SM5 sector around 24 million. Who's going to win? Barb Isman here is not to blame (OK last time I mention it), being cheap is where the blame belongs. Our success is limited to what we put in, and so far we haven't put much in - yet with great results.

                      The visionary would say invest in tommorrow for market access, promote a strong industry for investment and growth, effectively lobby so the government that is supposed to represent the majority does that and not have 9% of agriculture hold 91% of agriculture ransom.

                      These are the issues that need our attention, and just so I'm not misunderstood, to not squander already underfunded resources determining if getting an average price for all Canadian canola producers thru the CWB would be a viable future for the canola industry - let alone the track record of that organization's success in the value added sector.

                      Vader, any thoughts?

                      Comment


                        #12
                        Before the CWB can make/facilitate any investment in value added it will be necessary to get either and change or an exemption from the CWB Act from the new CWB Minister.

                        The first area the CWB might consider is ethanol but I think that with todays crush margins that canola crushing/biodiesel might be a better place to invest farmers money.

                        And before any of that perhaps we need some indication from farmers whether they want to invest in the industry. The alternative is to remain haulers of water and hewers of wood.

                        Comment


                          #13
                          Vader;

                          Leadership is the key here, why don't the CWB directors take the lead and organise a new gen co-op?

                          We can do this today, without any change or need to ask any Minister for anything! I believe there is $3mil avaliable from present fed. programs for newgen. farmer owned orgs.

                          Why haven't we done this?

                          Comment


                            #14
                            Vader, I asked you before in the thread “Who Controls Grain Handling?” and got no answer, perhaps I’ll get lucky here. Why should the CWB be involved in any investment for farmers? Beyond the fact that some farmers may disagree with how you would be spending their money, what does the CWB bring to the table other than farmers’ money?

                            Tom – I don’t think you need to look to the CWB for leadership with new gen coops. Not only are there many good leaders out there on the farm, but the CWB has a very poor track record when it comes to new gen coops – just look at the Prairie Pasta fiasco. But I guess you could say that was different – that involved a crop the CWB understood and was already handling.

                            Vader – comments please. (To this and to my questions in the other thread – please don’t drop that ball.)

                            Comment


                              #15
                              I think this is a great opportunity to regain some farmer impowerment. If any of you have ever taken an economics course the law of supply and demand only work when the buyer out number the sellers. Look in the marketplace today. There are way more sellers then buyers. If you take a look at what the Quebec farmers have done to a large part of the commodities they produce, they have take steps to regain farmer power in selling products into the market place. They have a network of single desk/cooperatives that are MANDITORY. Speaking to the Quebec farm organization (UPA) President. He clearly stated that through there experience, manditory participation is the only way to regain market power for the seller. That is us folks. Now I am not saying that the CWB is perfect, but right now, for prairie farmers it is the only Non multi national that we have to work with. Do you think that Cargill, ADM is willing to give back any portion of there margin to you? I hardly think so. They just hope you stay alive long enough to build there Empire. Just a thought. Think about it.

                              Comment

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