The Canadian Wheat Board

[parsley]

Listen to me, Vader.

We differ. You call it "right and wrong". I differ. Is Catholic right and Baptist wrong?

I DO believe that the single desk needs to be sacrificed to satisfy the real economic needs of farmers. Farmers need money, Vader.That's the bottom line.

Every grain company reading this blog is well paid by farmers, because the CWB guarantees they are well paid before farmers get paid. Same with staff. Same with you. I don't begrudge paying well, and you know that, BUT farmers cannot pay because they are bleeding so many dollars they are to weak to survive.

It's a little like the last Easter Island inhabitant chopping down the last trees. Farmers are the last trees, and you defend more of the same. Keep chopping.

Don't dismiss my point of view, and proclaim it's not on the table. It is.

Instead, let's examine what charliep put on the table:

"allowing 500,000 tonnes to be sold outside the current CWB system"

Will the sky fall?

Has doing just that destroyed Ontario's marketing system?

If you read the newspapers and blogs, how many Ontario farmers are bitter and dissatisfied with that first opt-out option?

The most important question that you have ignored on this thread,that must be addressed, is, again, our very patient thinking-ahead charliep's:

"Does the industry need to think about a transition plan? What would the transition look like?

Right now, the ones with the most gravey to lose isn't the Board itself, nor the farmer.

Parsley

[Incognito]

FACT:

The Conservatives have said they are going forward with Dual Marketing.

FACT:

STE's at the WTO negotiations will be front and center before April 30.


What is the CWB doing to ensure farmers returns (because that is your mandate - maximize returns to the farmer) when these CHANGES occur?

Change will happen.

And if the CWB and BOD are doing nothing to get ready for change, you might as well move the office from 423 Main to Drumheller,AB and be laid to rest with the other dinosaurs.

My 3-year old knows better than to take an all-or-nothing approach because when he does, he usually gets nothing.

This week, 67% of Agricore's delegates voted for dual marketing. This after CWB staff were working hard to ensure the vote didnt happen or lobbying hard to affect the results.

Grain marketing for wheat and barley will change in the next 12 months. That you can take to the bank.

Negotiate with the all-or-nothing approach you will get nothing.

[TOM4CWB]

What's up with LDC and SWP Incognito?

[TOM4CWB]

Can you give me an e-mail?

tom4cwb@hotmail.com

[chaffmeister]

Repeated from Incognito for emphasis:

What is the CWB doing to ensure farmers returns (because that is your mandate - maximize returns to the farmer) when these CHANGES occur?

Vader: isn't it ironic that open (dual) market supporters are asking what the CWB is going to do in a changed world?

[parsley]

Alliances are quickly happening behind the scenes, TOM4CWB. Some, as you know, will carve out the marketing chunk, and some will grab the sourcing
piece, as currently is being finalized.

Both really need farmers.

The "CWB-Multi-Nationals(MN)" alliance has prospered until now, and both have made money. But farmers haven't.The cash cow is dying, and the MN's know it and are quietly re-organizing, while the CWB won't discuss it.

Realization is setting in. Changes are inevitable. Not because a new Government will make changes, but because farming is no longer viable on paper,on the farm, in the banks, or in Parliament handouts.

Initially, farmers will bypass some local corps, but basically if the corps provide good service and transportation, and prove the value of their world wide networks and marketing expertise, farmers and the evil big bad companies will work side by side. The MN's will need to farmers for grain. MN's will need to pay for grain-soucing, which they presently do not have to do. because the farmers pay for the sourcing via the CWB.

Where does the CWB fit in here? I'm having a hard time figuring out who will want to dance with the Board. What value do they add to MN's or to farmers in our new world, Vader?

I will say it again. I visualize, going online,at home, listing a particularly-described tonnage of grain for sale, designated with an internationally-recognized grading denominator,accessing the minute by minute changing online price-discovery, chosing my price, and my buyer, instantly selling online with for example,Louis Dreyfus, guaranteed getting paid by 'Grainpal'.

And if you don't believe it can happen, just talk to the woman who made it happen at e-bay.

Parsley

[charliep]

The issue really comes down to the CWB's ability to live in a more de-regulated market.

Kinda reminds me of my school days (over 50) when the teacher used to carry a yard stick. Get out of line and you got wacked across the knuckles.

Teachers can't use yard sticks in this manner any more but they have developed other tools to help students learn. Perhaps student in the new world are taught self discipline with guidance from teachers.

My original question is what will the CWB look like in 5 years (assuming they don't live under the current regulatory authority) and what steps (however small) need to happen to get there.

Maybe the first step is to have some other group than the CWB issuing export licences (likely afederal agency) and work with industry to develop clear criteria as to what qualifies. Would require a change to the CWB Act but what the heck - will be a requirement for the federal government (whatever the political stripe) at some point in time.

[TOM4CWB]

Charlie;

I seem to remember that with barley in Eastern Canada that the CWB had it's export license authority removed.

I understood that Foreign Affairs took those duties over... without a change in the CWB Act. Could be the Regs?

In any event it would not significant changes to resolve this problem...

Especially now a legal action is pending against the CWB because it has abused it's authority specifically on this issue.

[parsley]

Farmers need to be granted licenses automatically charliep.

It is their only alternative "out" if the grain companies get out of line,

Right now, the accredited agencies write up contracts with the CWB. Very lucrative contracts. Easy money. Not competitive at all because the main player is absent...that being the farmer.

Farmers need the option to pick up their toys to bypass the system if it steps put of line. And it has.

If the CWB licensing function automatically grants, it doesn't need to be separate, but if the licensing function is allowed to remain as a tool to keep farmer grain captive, then, I would agree that the marketing-vs licencing functions of the Board should be permanently separated, and this can only be done by Parliament.

Above all, (and I am being redundant), it is crucial that farmers are granted licenses at all times, because it keeps the Board honest(Farmer gets mad and markets outside the CWB), and keeps the MN's honest(they are not guaranteed a captive farmer supply of grain, signed, jailed and delivered by the CWB.

As you all too well know, charliep, "working with the industry" translates best as 'humoring farmers' at a consultation-table, shared with the remainder of industry players, laden with well-laid plans how best to divide up profit's carcass.

Parsley

[parsley]

Yoohoo, Vader, YOOOOOHOOOO,

The table is being set. Where are you? charliep brought a bottle of transition wine.

What are you bringing to the table?

Parsley

[charliep]

From my world, Vader has already answered the question - single desk or nothing. I also note the suggestions around smaller pools (perhaps around specific markets) and different types of pricing options. These are good steps that would better position the CWB to operate in an open market.

The thing I am interested in is the farm manager (perhaps they just read and don't post).

1) What products and services does the CWB offer to your business that provide value?

2) What would your expectations be of the CWB in an open market? What would keep you using their services? Why won't you use the CWB services? If your fear is your neighbor will sell for a higher price than you do, that horse has already left the barn with the new CWB pricing options.

3) What transition would occur? It would seem to me to opening up the market for some smaller areas that do not impact overall pool returns would be a good place to start. Maybe the other area Vader does talk about in terms of the CWB getting more innovative in their contracting and pricing tools. It may mean leaving the CWB in charge of certain markets for a guaranteed period of time (Japan, China, offshore, domestic conventional wheat milling industry or whatever).

[parsley]

#3 charlie,

We've already been moving a kilometer at a time, for example:

A more than willing CWB already has opened up the feed market for the feed mills(an unnanounced secret transition)where thousands of bushels of grain bypass Board marketing with Board blessing. I guess we've never been informed if it has impacted Board marketing. Vader, has the CWB done a study to see if EMFA grain has profoundly impacted Board marketing or the pools?

Will taking a bite of "smaller areas" you are referring to charliep, actually decelerate the transition pace from kilometers to meters?

Parsley