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CWB Oct 13 letter... We would DIE before allowing you to FIX the CWB

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    CWB Oct 13 letter... We would DIE before allowing you to FIX the CWB

    Charlie and Lee,

    Did you read this?

    How can Minister Strahl put up with these fear mongering, suicidal, management?

    October 13, 2006

    http://www.cwb.ca/public/en/topics/task_force/index.jsp#response1

    "The CWB is pleased to respond to the Task Force's questions.

    Before doing so, however, we note that each of these questions refers exclusively to the "CWB". The questions are clearly premised on the assumption that the "CWB" would continue to exist in the absence of the single desk.

    The name "CWB" carries many connotations; positive for those who support it and negative for those who do not. However, in the open market environment that the Task Force seeks to implement, the "CWB" as it exists today and, just as importantly, as farmers understand it today, simply would not, indeed cannot, exist.

    This is not just a question of semantics. It is essential that farmers understand that in the absence of the single desk a "strong and profitable CWB" is a myth. In the absence of the single desk an entirely new entity would have to be created to assume whichever of the CWB's current functions might continue to make economic sense in an open market environment. Unquestionably, however, the CWB as farmers know it today would be gone. Preserving the name "CWB" does not preserve the essential value-proposition that it brings to western Canadian farmers. It is a mistake to think that there would be any similarity between the current CWB and whatever entity might exist after the single desk has been removed.

    In the absence of a single desk there is no viable alternative for the Canadian grain industry other than that which exists in the rest of the world — an open market controlled by the same transnational corporations that currently control the global grain trade in every country except Canada and Australia. By last count four of these companies controlled 73 percent of the world's grain trade. This was up from 62 percent five years earlier and their influence is increasing. There is no reason to believe that in the absence of the CWB's single desk these same companies would not quickly control western Canada's grain trade as well."

    I note that simply issuing export licenses... for "designated area" wheat and barley producers would do none of what the CWB claims above in this letter... not require a change in the CWB Act or mandate.

    Simply put the CWB MUST respect our right as growers to offer our wheat to the CWB... or to access an export license as the CWB can issue and in fact has an obligation to issue under the CWB Act... when the price of wheat/barley inside and outside Canada are the same.

    With the advent of Cash pricing... the CWB already ended the "single desk" as we knew it... and it is purely discriminatory NOT to issue export licenses.

    Further the CWB needs to issue these export licenses... to protect pool accounts at the beginning of the season... and NOT allow the pool accounts to be cherry picked... as is happening today.

    We are already in a crisis... since we have cash pricing today.

    #2
    So...what is wrong with the letter?

    Comment


      #3
      Wilagro;

      "It is essential that farmers understand that in the absence of the single desk a "strong and profitable CWB" is a myth."

      How on earth can the CWB mangement prejudge decisions that haven't been made, and say:

      Without the right to confiscate grain, at below fair market value... the CWB cannot add value to my bottom line and extract a premium for my farm?

      Which farmer does the CWB work for?

      NOT GRAIN GROWERS.

      This is the true definition of insanity... and expecting the impossible... from a single desk which exists to lower my grain returns and pass the subsidy on to Supply Management and both Canadian and Global food processors & consumers.

      Since these profit motives were/are the reason for the "single desk"... I must ask Wilagro... do you actually make a living from growing just grain... or is there some other reason you enjoy the CWB "single desk"?

      Where does the profit you make... actually come from... that motivates you and puts food on the table for your family?

      Comment


        #4
        When the CWB is effectively killed, there won't be any profit to worry about anyway as the big grain companies will have the profit in their bank accounts.

        Without a single-desk marketer, you are TOAST.

        Comment


          #5
          Wilagro;

          You are funny!

          Our farm survived because of Canola... wheat has been a rotational crop that I would LIKE to become more profitable.

          We use pulses as a rotation instead of summerfallow... and barley has seldom been a profit centre because of CWB capping of prices.

          The open market got Canola prices up... this fall... not the CWB. At the peak supply period... a 5 under basis at our local elevator on Friday the 13th.

          And the open market allowed me to sell my milling wheat @ $226/t Monday... not the pool accounts @ 209/t. According to the CWB... they even stole $7.50/t to give to the pools off the $226.

          So I have proof the CWB is still stealing from us... giving it to the pools... millions are being stolen.

          WHY?

          This has nothing to do with the "single desk" by the way... it is social policy to take from those who are productive and progressive... and give it to folks who don't care about marketing and like to stick their collective heads in the sand!

          How long must we support them?

          Comment


            #6
            wilagro:

            The Feds appointed a Grain Monitor a few years ago – it calculates all sorts of efficiency factors including the average cost to handle your grain. Go to http://www.quorumcorp.net/current_report.html to see for yourself.

            For the 04/05 crop year (the most recent available from the Grain Monitor) it showed the following average total costs (called Producer Net Backs) for the NW Sask area:

            1CWRS wheat $59.89 per tonne
            1CWA durum $74.08 per tonne
            1 Canada canola $47.50 per tonne

            Interestingly, these numbers include average trucking premiums paid (3.79, 4.69 and 0.39 respectively) and transportation “savings” by the CWB (1.49).

            This data certainly doesn’t support the idea that “without a single-desk marketer, you are TOAST”. In 04/05 the single desk cost you $12.39 per tonne more on your CWRS than the open market cost you on your canola; $26.58 more if you’re a durum farmer. (In SE Sask where durum is more important, the spread is about $20.00 per tonne).

            The inefficiencies in the CWB-controlled system are substantial. The CWB needs to get an average premium of over $10 per tonne just to offset these inefficiencies – before you even see any financial benefit from the CWB. Oh yeah, and then there’s the CWB’s overhead to contend with.

            wilagro – still want to say the big grain companies will profit from an open wheat market at your expense? Still think the CWB system is “effective”?

            Comment


              #7
              Chaffmeister, you should know better than to confuse cwb supporters like wilagro with the facts.

              If it didn't come from 423 main street in Winnipeg, it's propaganda. If the information originated from CWB central then it's gospel.

              Comment

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