Business Structure for the CWB

[charliep]

Lots of discussion in other threads about a new business structure for the CWB (example a new generation coop). There is also discussion of the CWB participating (perhaps even leading) agricultural value added business investment opportunities across western Canada.

What will the CWB look like in 5 to 10 years time? What kind of business model? What type of structure? Will the CWB have invested money in value added businesses? What role will they play in managing these businesses? Where will the money come from?

[Pulseman]

Hello Charly,

I guess each producer has different ideas on this. First, I feel a name change is necessary. CWB does not tell the real picture, PWB (Prairie Wheat Board) is the correct discreption now. CFPMC (Canadian Farm Products Marketing COOP) may be a way to go on a free membership bases and then the members say what products they want to have in the portfolio and I would propably be interested in a membership, if I can have the products of my choice under the marketing plan.

[TOM4CWB]

Charlie;

It certainly appears that the monopoly approach taken by the CWB to date would be close to the perfect example of:

EXACTLY HOW NOT to run a marketing agency.

We need a cut-off, a forensic audit; a determination of outstanding liabilities on forward/current sales... and where these liabilities were generated from.

Then and only then can we proceed with straightening out the mess that MUST be fixed.

An unrelated contractor (to past/present CWB accountants) who is a top notch bankruptcy manager may well be the best option straighten this disaster out!

Only directors who voted against present strategies should be allowed to stay on; the future Board of Directors. Every one else NEEDS to be turfed!

It is a sad day for "designated area" grain growers: that international wht markets are all rising... while ours are falling... especially when we are well below the cost of production.

In any other industry... heads would be rolling!

[charliep]

Tom4cwb

Still looking for vision for the future. Perhaps some of the question is how important having a CWB (either in current form or some new structure/responsibility) is for western Canada? If it is important, then what does the organization look like/what does it do?

[TOM4CWB]

Charlie;

These decisions are really up to Prime Minister Harper: After we have done an honest analisis of the CWB's position and performance.

Can the CWB be salvaged? Probably.

Will the AWB model; with a more accountable structure, (Oil for Food fiasco as a warning of what is needed)could this be a good model? Probably.

Prime Minister Harper in my opinion offered "designated area" grain farmers a choice in marketing and transportation... and I believe this was a serious attainable pledge to western Canadian grain growers.

It will not happen over night.

But it certainly is attainable over the likely life of this CDN Conservative Government.

[silverback]

Charlie, your question is important and noble. However, for me and some of my neighbors it is very, very hard to think about what the future might be when we have no idea of what kind of skeletons are lurking in the closet. I hear today that Mr. Ritter says that it is a "farmer" organization and that we all want to keep the monopoly rolling. Well that is garbage and they are just trying to keep the status quo going.

I want a full audit right now that is COMPREHENSIVE. (I don't care if one was done a few years ago either)

[AdamSmith]

Assuming Harper’s pledge to give farmers choice in marketing was in-fact genuine (and believe it was). A new day will indeed be dawning in prairie agriculture.

Charlie you asked about a new business structure for the CWB. The simple answer to that question is: Whatever those farmers who want to use it, want it to be. Once single desk authority has been removed the CWB could be very proactive and try to evolve into an organization that offers value to those who want to employ their services or it could just wring it’s hand and gnash it’s teeth and sit in the corner and pout that it doesn’t have a monopoly any more so we might as well just go off and dies somewhere. If some of the most recent comments from Ritter and Co. are any indication of what the CWB’s game plan is well they probably will do the latter. Quite frankly I couldn’t care less. If the CWB really believe they have zero, nothing, nada to offer, I don’t even know why we should care.

If other farmers want to throw good money after bad and have this bunch invest their money into new ventures and capital they will be free to do that. I won’t. Not ever.

My business is growing grain and selling it to those who will process it into something of greater value. I don’t need to be an owner of an ethanol plant or flour mill or a brewery, I just need those who are in those businesses to be healthy and profitable and growing so that I have a stable market for my grain. The current incarnation of the CWB (which is a hundred times worse than the old pre 2000 version of the CWB) has done nothing but cut down, trash mouth, tick off anyone and everyone who adds value to our grain. From the elevator companies and the railroads right up to the international companies who buy and process Canadian grain.

I’m just not sure the CWB even deserves the opportunity to compete.

It’s called the Blank Sheet Approach to reshaping the industry. Everything is going to be on the table. CWB, Canada Grain Act, Support programs. This industry is in such tatters there can be No sacred cows.

[AdamSmith]

Charlie the appropriate question is: Where do want this industry to be in Ten Years, Twenty Years? What do farmers need in order to get there?

Here’s my vision.

A common agricultural policy for North America based on free markets and equivalent government support to all North American Producers.

Canada must increase it’s processing capacity for raw grains, but in order for this to be successful this new capitalization must be held by strong hands. An overemphasis on using farmers money to build this new capacity will only guarantee it failure. Most farmers can’t even properly capitalize their own farms let alone the added millions that would be required to build new value added capacity.

Exports will always be important to the prairies. The more players who want to get into this business the better.

The revenue cap on the railways has got to be removed. All it has done is put an artificial limit on the volumes of grain, canola included, that can be shipped off the prairies in any given year. Today there is zero incentive for the RR’s to ship anything more what they are capped at. In-fact I believe they are penalized if they exceed the cap. So as long as that revenue cap is in place we’re going to just keep on adding to the carry over of all grains but especially Canola.

Our grading and varital registration systems are even more antiquated than the CWB. These have got to be high priority for the Conservatives. The rest of the world is developing higher and higher yielding varieties of wheat and barley with shorter and shorter straw. I’m tired of having most of my nitrogen produce 5 feet of straw and less seed and having to spend a third more time combining it. The obscene and unnecessary costs of preserving the superiority of CWRS is a major factor in the unprofitable nature of prairie farms.

The Marketing panel new there was a problem but they were constrained by Liberal policy. Estey new there was a problem and made suggestion but again Liberal Policy was to defer and ignore. Kroeger same thing.

The Liberals are gone and so must Liberal grain and oilseed policy. The current structure of the CWB is the worst example of rotten Liberal Policy.

[rbrunel]

Someone please look at what has happened in Quebec. They have to some extent taken a page from the supply management book and are acheiving most of there income from the market place. Now we just have to figure out how to get 30000 grain farmers to agree on how we can get together and have only one seller of commodities. Tell me what works better, if u are the only seller of canadian gizmos or 30000 sellers of gizmos. Ok I will admit that the CWB has not always done a good job, but I truly beleive that it is has to potential to develope into a business model that can serve us and help increase profits of farmers. But this will come at a cost, that may be total indepence that we all enjoy. ARE U READY?? We are headed there anyways, The multi nationals will own us eventually if we don't stand together.

[AdamSmith]

rbrunel wrote: “The multi nationals will own us eventually if we don't stand together.”

rbrunel , do you really believe that??? Like really and truly believe that???

Read what you actually said. A multinational company will OWN you? A person, you actually believe they want to own people?

It’s hard to even respond to statements like that.

But if truly believe that. This still is a free country so my advice is to you would be not to sell yourself to them. But I think you could achieve your desired result if you just chose not to sell them your grain.

As far as supply management . Wheat is different than Dairy Cows or Chickens. These things are produced in confined barns where production can be determined and regulated to meet a specific demand. Of course these supply managed industries can only regulate supply within a certain jurisdiction.

Are you suggesting that a system should be put in place to match Manitoba, Sask. And Alberta production of wheat and barley to the limited demand for wheat in MB, Sask and Alb.? A population of just 4-5 million people? Eliminating all exports of raw grain and their processed products.

Is your mistrust and hatred of the big grain companies that distorted you would actually propose such a solution?

Please people, an open market is not the end of the world, if the anti-free marketers out there want to have any say in how this industry is going to be shaped into the future, please, please bring forward rational and thoughtful suggestions.

Supply management for wheat in a country which has historically exported on average 85% of the grain we grow is about the stupidest idea I have ever heard.

[Pulseman]

I guess you fellow are so stuck in your trucks that you can not think beside the box. Not one interesting "new" idea in all blabla, specially selfelected CWB guru tom4cwb. Well, you get what you desreve.

O, by the way, if things work some what right, Harper will go with the BQ and the BQ has no interest what soever to keep the CWB. Hopefully.

Keep talking the talk and walking the old walk.

[onearm]

true pulseman, but the bloc like supply management. To protect sm5 the block will support issues that could impact sm5 and the cwb is one of them