Market Signals Project - Barley

[charliep]

I am working on a barley project that is reviewing the way market signals flow up and down the supply chain. Market signals in this case are more than price and include all factors such as quality, novel traits, logistics/storage, R&D efforts, etc.

Are barley market signals being transferred effectively in the current western Canadian system? What factors are working? What are not? Looking out 2 to 5 years, what changes need to be made to position barley more effectively as a viable/profitable crop in western Canada?

[Pulseman]

Hello Charlie,

I am trying to find my own answers to this and can not make this work. The bases (should) could be US corn if it is available in good quantities. So the trend setting posibilities are available, but this corn is 2500 km or more away and nobody publishes freigth rates to L.bridge, Camrose Edmonton.

By my calculations we have corn in the US for Dec. CAD108.09 plus freigth CAD40? makes corn for Dec. 148.09 (4.03/Bushel) Present offers for Barley is CAD 101/MT picked up.

How one can change the flow of info, bottom line is the free available quantity of corn, plus feed grains of other natur, and this is not openly stated anywhere.

I am surprised that you did not have any reply on this important subject.

[TOM4CWB]

Pulseman;

This is all about market arbitage... the least expensive window to access the best markets.

IMHO the Califonia PNW Dairy market, and PNW Hog markets are the highest return if we get environmental lockdown on polution especially, Low phitate (Spelling) barley will be a big opportunity into this market... with marketing choice as a driver in the North American feed grains market.

Smaller volumes 52 weeks a year... not an easy market like the CWB looks for in Saudi type Panamex sales. Direct bly grower to feeder sales could bring this type of market into a premium return for the bly producer in central ALberta... if the relationship was carefully fostered and the CWB kept their hands off and didn't try to undercut this trade.

[charliep]

Everybody assumes market signals are just about price and a reason to beat on the CWB. As both of you have indicated, there are also elements of getting signals about customer needs and farm level possibilities through the supply chain. There are also needs to minimize distribution and other supply chain costs. The objective is to get everyone working together to improve efficiencies and increase profitability.

I note barley acres took a significant hit in today's Statistics Canada report. This should get the attention of both maltsters and the livestock industry. I also note the opportunities for food and health benefit barley products.