Identity Preserved CWRS and HWSW contracts

[oilcan]

Are Alberta farmers being offered the same I.P. wheat and durum contracts this spring as growers in other regions of the designated area?

What contracts are available this year?

Seasons Greetings.

[parsley]

What is the volume of grain that Warburton bought on contract from Designated Area producers in 2000?

[bbrindle]

I've seen information that says generally 100,000 t goes to Warburtons and volumes could go to 160,000 t. Perhaps someone from the CWB could confirm or correct.

We had an item on this page on the Warburton's contract awhile ago, but I guess it has expired. For those who aren't familiar with it, Warburtons is a UK bakery that gets a higher price for its quality bread. The Warburton's contract is available to farmers in Manitoba and I think southeastern Sask. Warburton's has their own research and testing center in Brandon. I think they buy only certain varieties such as Teal, Columbus, Pasqua and Barrie. Perhaps Tom can add in some info.

Warburton's uses an IP system administered through Agircore and Paterson. Warburton's buys the wheat through the CWB but provides a premium to grain companies which flows through to farmers. The premium is for the costs of using and administering an IP system. I think it is about $20/t to the farmers. Farmers provide agronomic and management information too.

As far as I know, the other CWB variety specific programs are AC Vista (CPS white), AC Crystal (CPS red), AC Morse (durum) and AC Navigator (durum). However, I believe these are still at a trial level as they only pay a storage benefit (although AC Navigator, owned by SWP gets another $5 for the stronger gluten).

Are there any variety specific programs for malt? If not, why not?

[TOM4CWB]

On Identity preserved, it seems to me that Harrington 2 row should be a natural, as we know for sure it fetches a premium. Why are the farmers who take the hit on yield and extra expence to grow Harrington not paid this premium? If a Harrington premium of $1.00/bu is being paid maybe more farmers would grow Harrington, and shouldn't the customer decide what we grow by paying premiums and giving us market signals? CWB pooling masks these signals and the customer is not ending up with what they prefer, is truly, this in our best interests?

[TOM4CWB]

Warburton's has been spreading their program westward as their program expands. As was mentioned, there are two companies that are currently working with Warburton's: Agricore and N.M. Paterson. To find out if they are looking for production contracts in your area, perhaps you could contact those companies. I know there is interest to secure some production from Alberta, but there is a freight disadvantage as Warburton's prefers to ship eastward through the St. Lawrence as it is the direct route to the U.K.

The CWB is offering special contract programs for AC Crystal, AC Vista, Ac Navigator (through SWP) and two varieties of Hard White Spring Wheat (through Quality Assured Seeds). These programs offer a $2.50/t premium. Ac Vista has an additional premium of $2.50/t (total $5.00/t). Storage is paid from October 1 until time of delivery and the delivery is 100% accepted for eligible grades.

Lastly, regarding the note from TOM4CWB on Harrington barley, there is no premium of $1.00/bu for Harrington over other accepted varieties in any given market. Harrington has held very strong customer support for many years, but new varieites such as Kendall and Metcalfe are building customer support. Malt barley works on a variety specific basis for all varieties, however the price relationships between accepted varieties in any given market are competitive between varieties of the same quality specifications.

To help farmers determine the market acceptance and which variety to grow, the Malt Barley Industry Group puts out variety recommended lists each year. Check out www.cwb.ca/publications Go Malting Nov 9 issue for te recommended varieties list.

Tom

[TOM4CWB]

Denial is not just a River in Egypt, it ia alive and well at the CWB!

Tom, please not that I said "if" a dollar a bushel premium for harrington barley, exists. How can we know what the premium is, since you pool harrington barley with other 2 row varieties? The CWB has a buying monopoly and puts punitive buy-back charges on anyone trying to develop this specialty market. The US elevators many times pay a specific contract premium for specific varieties, just like we can contract with specialty Canola, and even now in CPS Wheat with your Crystal and Vista programs. The fact is that Harrington malt quality is recognized by many as the best in the world, and the CWB does not transfer this market signal back with a premium price for this premium quality barley! Why?

[craig]

The class of wheat that really needs a IP program is Winter Wheat. By lumping all winter wheats together we have in fact lost value in better varieties because the average standard is little better than feed wheat. While the board can claim there is not enough acres to IP they also discourage producers from raising their management practices to produce better wheat because there is no reward. This crop has potential for higher acreage and better returns but only if the market place can send the right signal

[bbrindle]

Imagine if the CWB allowed "direct marketing" of winter wheat. Perhaps a company would take the initiative to "champion" winter wheat, find markets for the good quality product, set up an indentity preserved system and pay farmers a price based on true value, not blending. Yes, those that produce lower quality might receive less, but that's the market signal. Or, maybe lower quality shouldn't be exported anyway and should be used for feeding or other uses in Canada. Or, the CWB might continue to be involved and offer a pooled price to those farmers who choose that option. Or maybe try it with CPS, or CWES. Just imagine. Would that be a good idea? What would it take to make that happen?.