Ag News

[parsley]

PUBLICATION: Cape Breton Post
DATE: March 10, 2006


"Coalition of farm groups asks Emerson to step up bilateral trade talks."


"Several national agriculture groups are calling on the federal Trade minister to step up negotiations with some of Canada's traditional trading partners in an effort to stay competitive with the United States.

Nine organizations, including the Canadian Wheat Board, the Canadian Pork Council and the Canadian Federation of Agriculture, sent David Emerson a letter earlier this week asking him to speed up bilateral talks with several countries the groups consider a priority.

Recent free trade deals between the United States and Peru and Columbia will put Canadian wheat and barley exports at a significant disadvantage, Victor Jarjour, the wheat board's chief trade representative, said in an interview from Ottawa.

Another deal with Morocco that just came into effect is expected to hurt Canadian durum producers.

"We really feel it's important and critical that Canada keep up with the Americans because we're competitive in so many areas, including wheat, oilseeds and pork," said Jarjour. "You can't let the Americans get ahead of you in those markets and have their goods subjected to a lower tariff than Canadian goods or you lose those markets, or you lose a lot of money."

The same coalition of farm groups first took its case to former Liberal Trade minister Jim Peterson.

However, it decided to renew its efforts early in the new Conservative government's mandate and use the latest U.S. deals as examples of the greater economic impact that could still lie ahead, said Jarjour.

The value of Canada's annual durum wheat exports to Morocco is more than $100 million. In Peru and Colombia, Canada faces a tariff of as much as 17 per cent on wheat and barley, while the Americans will get preferential treatment."


Parsley

[parsley]

WINNIPEG FREE PRESS
10 March, 2006


by Larry Kusch

Agricore expects dual marketing by year's end


The minister responsible for the Canadian Wheat Board may begin to make good on a Conservative promise to create a dual marketing system for wheat and barley by late this year, a Winnipeg grain company executive said yesterday.

Brian Hayward, chief executive officer of Agricore United, made the comment during a conference call with reporters and market analysts to discuss AU's first quarter results yesterday.

Hayward said he met Wheat Board Minister Chuck Strahl about 10 days ago.


"He said the government was elected on five priorities and that deregulation of the wheat board was not one of those five," Hayward recalled.

"But (Strahl) was quick to say that it was a part of their election campaign and one of their key platform items and that . . . they had every intention of moving on that file." During the election campaign, Prime Minister Stephen Harper promised to end the wheat board's long-held monopoly over the export of wheat and barley.

Harper said farmers would be given the choice of whether they sold their grain through the board or the private grain trade. That raised concerns that such a move would destroy the wheat board.

Earlier this week, the Winnipeg Commodity Exchange said it was gearing up for a possible end of the wheat board's monopoly.

It announced that it had given preliminary approval to three new futures and options contracts to be listed "when changes occur to the marketing system." Hayward said Strahl indicated that the government did not want to introduce changes in a way that would be disruptive to the marketplace.

The Agricore United executive said he took from his conversation with Strahl that the government "planned to proceed" on the issue "probably later in 2006." And Hayward said he expected there would be a period of industry consultation.

He also told analysts and reporters that Agricore United would be ready for any changes to the Canadian grain marketing system.

"I would say very clearly that our company is prepared to participate in whatever market circumstance arises," Hayward said.

Agricore United yesterday reported a loss of $20.6 million (46 cents a
share) for the first quarter ended Jan. 31.

The company said farmers appear to be delaying purchases of fertilizer and other crop inputs until closer to planting time this year.

Last year, Agricore United posted a first-quarter loss of $18.4 million. It wound up 2005 with a net profit of $12.5 million.

Sales of crop inputs in the latest quarter dropped by $19 million to $51 million, as farmers responded to escalating fertilizer prices and low commodity prices by delaying purchasing decisions until closer to seeding, the company said.

"Given the seasonal nature of agriculture in Western Canada, the loss in the first quarter is not unexpected," Hayward said.

"The three months between November to Jan. 31 are typically a slow period for farm inputs, representing less than 10 per cent of the company's annual crop input sales." larry.kusch@freepress.mb.ca "

[agstar77]

Farmers aren't delaying, they just can't get operating loans and why would they , when almost everything pencils negative? But then how would Hayward know with his big fat salary!!

[JD4ME]

Parsley

You will then find this interesting as well.

National & World Ag News Headlines
U.S. Trade Agenda Includes Malaysia and South Korea
USAgNet - 03/14/2006

The Bush administration is moving forward in free trade negotiations with Malaysia and South Korea, according to the U.S. Grains Council.
U.S. Trade Representative (USTR) Rob Portman this week announced the Administration's intent to negotiate a Free Trade Agreement (FTA) with Malaysia.

Although the country typically imports about 2.5 million metric tons (98.4 million bushels) of corn per year, Malaysia has not purchased any significant volumes from the United States since the 1990s.

FTA negotiations with Korea, one of the largest feed grain markets in the world, were announced in February and are scheduled to begin in June.

Korea imported 8.6 million metric tons (338.5 million bushels) of corn in 2004/05; of that amount 2.2 million tons (86.6 million bushels) was of U.S. origin.

"We are looking forward to providing input to our negotiators as these talks move forward," said Kevin Natz, USGC director of trade policy.

"Already, we have highlighted the importance of using the FTA discussions to ensure that any biotech regulations put in place by South Korea do not become an impediment to U.S. corn exports."

USTR is working under a tight deadline as its Trade Promotion Authority expires in mid-2007.

[parsley]

Regina Leader-Post
14 March, 2006

No changes until after WTO talks: Strahl



CALGARY (CP) -- Federal Agriculture Minister Chuck Strahl says revamping the Canadian Wheat Board will have to wait until after next month's World Trade Organization negotiations on trade subsidies.

Strahl says the WTO talks are his main priority this spring and he will host a round-table meeting of farm and agri-food leaders Tuesday in Ottawa aimed at ensuring Canada has a united and focused position.

"We're trying to get the industry to come together," Strahl said Monday during his first foray into Alberta since becoming agriculture minister.


"If we have a strong Canadian position, that gives our negotiators the extra oomph behind closed doors to get what we want, which is a reduction in international subsidies."

The current round of meetings, set for Geneva in April, will key on domestic support and protection of home-grown industries. Movements to reduce or eliminate subsidies are pivotal for the future success of Canada's export-based agriculture industry, said the minister.

"If we get this right, it could be a very good news story for the Canadian ag business, much of which is exported," said Strahl, who added he would like to see subsidies reduced by 60 or 70 per cent. "We don't have the dollars in Canada to compete with those subsidies."

The federal Conservatives have promised to end the wheat board's monopoly in Western Canada -- a pledge that would allow farmers to choose between exporting their wheat through the board or independently. Strahl said that will still happen, although some form of the board will continue in a role that maximizes return for farmers.

"This spring, it's not in the best interests of the industry to open this up," said Strahl. "I just can't see that it's a wise move prior to
(knowing) where the WTO's going to end up."


Parsley

[parsley]

The good thing about Hayward's "big fat salary", as you put it, and I'm sure you will agree, is this:

1.His salary is performance tied, in other words they can fire him if he's a lazy glump. No Dingwall here.

2. AU is a public corporation and agstar77, you might want to take take your business to one of the terminals (they love the Board). You have a CHOICE here. Isn't that nice?

Parsley

[agstar77]

CEO's salary don't always reflect economic reality eg. Nortel and Roth. Since AU was taken over by ADM they have done nothing but contract lay people off decrease service and lose money , but then again Hayward hasn't taken a pay cut. It could be that I'm still bitter over the way the directors and ceo of MPE ran it into the ground before they gave it away to ADM.

[JD4ME]

Parsley

Hayward is paid based on what other CEOS make, his companies performance has been less than stellar and continues to struggle. If it were any other industry he would have been replaced but being as he isn't really the one calling the shots in AU, an expensive puppet he will continue to be.
And as far as a company goes, our dealings with AU have gone down to a fraction of what they were 5 years ago. Bad service, poor grade deals, bad basis levels and non competitive prices on inputs and no vision or jump.
In our area they have gone from a dominant force to an also ran.

[parsley]

The good thing is you can sell your shares, and take your business elsewhere. And AU can drown in it's own red ink, if they do business as you describe.

But ,at the same time, how can you endorse the entitled? Perhaps you consider them the royalty of the farm community?

http://72.14.203.104/search?q=cache:zfCvXEdtG24J:www.wbga.org/03-08-04.pdf %22Richard Klassen%22 %2B CWB %2B court &hl=en&gl=ca&ct=clnk&cd=3

Parsley

[JD4ME]

Parsley

You misunderstand my point, I don't endorse anyone here I say that in other industires many of these CEOs wouldn't cut it. We saw it with agricore and I believe we are seeing it with AU. Don't worry my shares are gone and reinvested in other sectors.

[parsley]

JD4ME,
Sorry, I should have directed my entitled comment to sawfly, because he condemns a public corporation, which he can dis-associate with, but remains steadfast defending the CWB's "Richard Klassen types", from which farmers have no escape.

Another option available is shareholder's meetings, sawfly.

Corps' CEO do turn green and vomity when shareholders ask questions at the annual meetings that 'one does not ask' self-proclaimed royalty.

Farmers need to do more of this. Your world can be shaped by you/your interest group instead of having someone shape it for you.

And that does not mean every farmer needs/wants the same pair of shoes.

Parsley

[parsley]

http://www.world-grain.com/articlearchives/archive_article.asp?ArticleID=34771
Canadian malting barley research facility established

(World Grain, August 1, 2000)

Related stories


"MEMBERS OF the Canadian malting barley industry have become partners in a malting barley research and market development facility, to be located in Winnipeg, Manitoba. The new facility will become a focal point for applied technical research and market support for Canada's malting barley marketers, processors and their customers in Canada and internationally.

The Canadian Malting Barley Technical Centre, established with capital investment by the Canadian Wheat Board and Canadian Grain Commission, will focus on applied research and pilot-scale malting and brewing tests of registered Canadian varieties. Specific research and technical projects will operate on a fee-for-service basis."


Any really smooth CEO will get their research paid for...by Government, OR by farmers if they can get away with it.

So what the hell was the CEO/BofD of the CWB doing, appropriating your money for this project, agstar?

Parsley

[parsley]

Regina Leader-Post 16 March


Agricore chief urges caution on biofuel


SASKATOON -- A lot of farmers and small-town economic developers on the Prairies are counting on biofuel development to put some profit back into farming, but the head of Canada's biggest grain handling company isn't so sure it's our future.

Brian Hayward, CEO of Agricore United, told farmer delegates of the Western Canadian Wheat Growers Association (WCWGA) that it's quite possible Canadian farmers can't make ethanol or biodiesel from wheat and canola as cheaply as other countries can from sugar or palm oil.


Hayward says there is such a heavy expansion right now of U.S. corn acreage for ethanol production at the expense of wheat acreage that it may actually increase U.S. demand for high quality Canadian wheat. (American grain giant Archer Daniels Midland, which owns 23 per cent of Agricore United, is building six new ethanol plants in the U.S. this
year.)


High energy costs will also make North American markets in general more attractive for farmers than traditional Canadian export markets for grain overseas, Hayward predicts.

"In a high-energy situation, it costs more to freight grain to China or India or wherever," he said.

"In that kind of market situation, we're going to find that places like Mexico and the United States are going to be probably some of our more attractive markets".

The president of the WCWGA, Cherilyn Jolly-Nagel of Mossbank, says she doesn't necessarily agree with Hayward on the future of biofuels. Jolly-Nagel is also a rural economic development officer for Mossbank and says the community is looking at building a biodiesel facility in addition to a value added project for mustard processing.

"I would like to see us jump in with both feet, especially in a province like Saskatchewan where we have that opportunity and that oversupply and 'underprocessed' situation," she said.

"The thing with biodiesel and ethanol, it can be a major undertaking, but it can also be done on a small scale which is going to enable these small communities to continue and prosper."

Hayward later told reporters he didn't mean to suggest farmers shouldn't invest in ethanol or biodiesel, but they should not to pin all their hopes on it.

"There is a place for Canada to be participating in growing livestock; there is a place for Canada to be participating in alternative energy, and there is a place for us to be exporting raw grains and value-added as well," he said. "I don't think it's in our best interest to put all our eggs in one basket."

Hayward said the question of succession for today's aging farmers is probably one of the most important farm issues that needs to be addressed in Canada, acknowledging that fewer people raised on a farm want to stay in agriculture.

However, the grain industry official says that despite the gloom about the short-term future and the tough financial position many farmers face this spring, most farmland will be put into production.

Longer term, he says the consolidation pattern of fewer, larger farmers will continue.

"I think that trend can continue into the future and you can have still larger farms with fewer operators," he said. "The demographic challenge is on the horizon."

Jolly-Nagel says she is almost always one of the youngest producers at any farm meeting she attends, but says that she and her husband both see the possibilities in making their farm profitable as long as they can get to make their own marketing decisions.

The WCWGA has long held the view that farmers need to have a choice in whether they can market wheat or barley through more direct channels than the Canadian Wheat Board.

Jolly-Nagel says the organization will deal with that issue at today's sessions .

She admits to disappointment with the hesitancy of new federal Agriculture Minister Chuck Strahl to move quickly on that issue.

"I can appreciate where he is coming from as a new minister."

While Hayward did not speak directly in support of dual marketing, he says Agricore United does know how to market grain in a dual market and will be ready for that situation if it occurs.



Parsley

[agstar77]

Bio-fuel is still only an option when using waste material. On a purely economic basis it does not pass the test. If you just want to reduce a surplus of grain, it can work. The problem is the total energy use in producing and transporting any crop and turning it into a fuel is just to high. Green yes economical no. Waste from animal production has much more potential.

[Vader]

Biofuel may not pass the test on a "truly" economic basis. (I think the jury is still out on this) However with mandated federal government blending and tax incentives there is an economic model, today, that is highly profitable.

I think that some people will be ignoring true economics in favor of making money.