chaffmeister
I will try to answer your questions.
Quote"About the CWB, you said:
“overall I think they are not doing too bad of a job.”
What specifically makes you think that"
Unquote
As the only seller of Wheat, Durum and malt barely for export in western canada they have a good reputation. I think if there was more than one seller they would try to undercut each other to gain market shares bringing smaller returns the producers. With a variety of companies bidding for limited rail capicity, grain rail freights would escalate. The export of grain would be dominated by the multinational grain companies wich currently compete against the CWB.
QUOTE
“I think they get a better price for us in the long run.”
What specifically makes you think that?
I understand what you are saying about selling at harvest. But what you may not understand is that prices are low at harvest BECAUSE people sell TOO MUCH grain for the system and end-users to absorb. So that comes with a price. And part of the problem is that these guys aren’t getting enough from their CWB grains. So they have to sell canola into a hole.
“Without the CWB we will be at the mercy of the multinationals like DUPONT, MONSANTO, ADM - not even Canadian companies.”
What specifically makes you think that?
“Once we are at the mercy of the multinationals, we may have to buy all our seed from them as well as all our farm inputs and if we don't they won't buy our product.”
What specifically makes you think that? (I’m looking for proof, not supposition.)
“The multinationals are brainwashing us trying to suck us in so that they can control us.”
What specifically makes you think that?
(Some would say that this is an apt description of the CWB.) "
UNQUOTE
If the CWB would dissapear the market would be left the Multinational grain companies and they would view western Canada as just one more place to source grain. Unlike the CWB which returns all revenue less marketing costs multinational grain companies are in the business of earning profits for their shareholders. The CWB want to maximize returns for farmers, private grain companies exist to purchase grain at the lowest possible price to maximize their own profit margin.
THe CWB earns premium prices for western Canadian farmers through its size (world largest marketer of wheat and barley) and through its ability to ensure customers of a reliable quantity and quality. These advantages will disapear with the loss of the CWB single desk selling authority. A few Canadian companies and inland producer associations would exist on small margins.
I will try to answer your questions.
Quote"About the CWB, you said:
“overall I think they are not doing too bad of a job.”
What specifically makes you think that"
Unquote
As the only seller of Wheat, Durum and malt barely for export in western canada they have a good reputation. I think if there was more than one seller they would try to undercut each other to gain market shares bringing smaller returns the producers. With a variety of companies bidding for limited rail capicity, grain rail freights would escalate. The export of grain would be dominated by the multinational grain companies wich currently compete against the CWB.
QUOTE
“I think they get a better price for us in the long run.”
What specifically makes you think that?
I understand what you are saying about selling at harvest. But what you may not understand is that prices are low at harvest BECAUSE people sell TOO MUCH grain for the system and end-users to absorb. So that comes with a price. And part of the problem is that these guys aren’t getting enough from their CWB grains. So they have to sell canola into a hole.
“Without the CWB we will be at the mercy of the multinationals like DUPONT, MONSANTO, ADM - not even Canadian companies.”
What specifically makes you think that?
“Once we are at the mercy of the multinationals, we may have to buy all our seed from them as well as all our farm inputs and if we don't they won't buy our product.”
What specifically makes you think that? (I’m looking for proof, not supposition.)
“The multinationals are brainwashing us trying to suck us in so that they can control us.”
What specifically makes you think that?
(Some would say that this is an apt description of the CWB.) "
UNQUOTE
If the CWB would dissapear the market would be left the Multinational grain companies and they would view western Canada as just one more place to source grain. Unlike the CWB which returns all revenue less marketing costs multinational grain companies are in the business of earning profits for their shareholders. The CWB want to maximize returns for farmers, private grain companies exist to purchase grain at the lowest possible price to maximize their own profit margin.
THe CWB earns premium prices for western Canadian farmers through its size (world largest marketer of wheat and barley) and through its ability to ensure customers of a reliable quantity and quality. These advantages will disapear with the loss of the CWB single desk selling authority. A few Canadian companies and inland producer associations would exist on small margins.
Comment