Grains and Oilseeds SUMMIT "Managing RISK"

[TOM4CWB]

Charlie and LEE;

Honourable Minister Doug Horner, AB Ag, and all the people at the Grains and Oilseeds summit deserve a huge round of applause... and my personal THANKS.

We are in a massive period of Change... I will repeat what I took from the G&O summit:

This is all about the new world in 10 years

Biofuels will be integrated in western Canada.

Think about what happens with 3-5mmt more Canola being crushed for specialty oils and biofuel in 10 years. What does this do to the export oriented grain handlers?

Then process another 3mmt or more of wheat/bly for ethanol... what is left for the traditional grain handlers for export?

There is going to be a massive restructuring, there has to be... at some point. Agricore is in the weakest position because of debt. SWP already dealt with that problem and transfered it to a share structure.

The CWB could be out of the export game by default... because there will simply not be enough critical mass to sustain a large union and institutional player who markets using a price discount commodity based selling system.

Curt (JRI)explained to us how a 150 year young Company survives in 2010.

It is all about managing personal relationships... matching up STABLE patient capital... with STABLE end user comsumptive demand... relationships that carefully manage risk and retain capital through volatility and high risk periods.

We ARE in a transistion... this trial ballon is a signal... that we should start serious consideration for each one of our entities.

What will the new future of Agriculture as both a food...and an energy producers... look like? What will control our RISK... in the most effective manner?

THIS IS ALL ABOUT managing RISK... THROUGH PERSONAL RELATIONSHIPS...

The 20,000 CWB growers who have transitioned to PPO's put the writing on the wall... as did the 1.1mmt with a $35mil transfer to the pools and Contingency fund.

We are more effective marketers outside the pool accounts of the CWB through personal relationships with the market... to effectively manage RISK.

Each and every manager needs to sit down with the patient Capital at their kitchen table... and draw up a strategic plan... looking at what the next generation will be looking at... in 25 years from now.

If we don't plan for a prosperous future... we WILL end up somewhere else!

[charliep]

Thanks for the feedback Tom4cwb.

Interesting enough, I am off to the Ukraine on Sunday for 3 1/2 weeks to talk about these same issues. Farmers life in the Ukraine is 100 times more challenging than any farmer in western Canada. Yet they are beginning to apply the principles above starting with solid business plans.

My project is working with extension offices (farm advisory services) to develop their business plans. The success models I take from Canada are things like the commodity associations/commissions, applied research groups, etc.

I always use cell phones as an example of the impact of technology on Ukrainian development. The traditional telephone is old and doesn't work very well. Cell phones are everywhere and likely have better service than Canada.

The Ukraine will never develop a grading system like we have. They can (with cooperation from industry) develop specific identity preserved programs. They are also well positioned to benefit from European bio fuel programs.

Will update when I get home.

[melvill]

tom4cwb, thanks for your summary but fill in a few more details.

Quite frankly, I didn't know anything about this. I found a little on the web but where and when was the G & O Summit? Who sponsored it? Are the proceedings available or going to be available somewhere?

[TOM4CWB]

Lee;

This was part of Minister Horner's consultation process over the past couple of years. I believe he said there were 6 meetings over the recent past in his tenure.

This G&O summit was on Tue 7 and Wed 8 of November @ Nisku AB.

Interested folks from AB AG & Praire wide Industry, got together and discussed what past experiences created prosperity...

And focused on future opportunites and principals that can drive prosperity.

I believe AB Ag Planning Secretariet will bring the report out to us with our recomendations.

Lee... this is about innovation, creating prosperity... and the future.

These things are in our minds... and we are enpowered by moving them to actions...

Prosperity spreads when we share and communicate in the positive.

IF are willing to build on our strengths;

When we decide to be unselfish/visionary enough to step outside the habit that drives 95% of things we do each day... that are not productive...

God Will Bless Canada!

[melvill]

Thanks, Tom. The info I found on the web about a G & O Summit was a U.S. meeting organized by the National Association of Wheat Growers and some other U.S. commodity orgs that met with the Grains Growers of Canada.

A summary of that meeting is at:

www.wheatonline.com/2000/washreport/report080604.PDF

[melvill]

One more thing. Tom I'm with you on the "innovation" thing. In my over 30 years of doing this work, one of the phrases that scares me most is "we've always done it this way" because I've found that's often a signal that a farm or ranch isn't treading water. It's slowly - or quickly - going backwards.

[cottonpicken]

I'm not sure i understand what your saying here. Are you saying we have to know the right people and be in the right circles to sell our products? And if were not our products are worth less than everybody elses?Or are you simply saying things are going to get alot better but its "steady as she goes" and risk management is as prudent as ever.

One scary thing you said was "curt" wanted producers to help through the incredibly volitale times.Does this mean selling at a lower price when prices are high?And that you expect a higher price when prices are low?

Why all of a sudden has everthing changed and what transition era are you talking about?Free markets,supply and demand and capitalism are not suppose to change.These are what have made us so great over the past 150 years.

I would like you to clarify what your saying here seeing as how you might be cwb man yourself someday.Some may say thats public office.-which means you serve the people not yourself

[TOM4CWB]

Cottonpicken;

It is very interesting how "personal responsibility" with a "positive relationships" looking to the future can be interpreted.

The spirit and intent IMHO... is providing information to those who are going the meet future challenges...

To transform positive attitudes and energy into prosperity for our communities.

It is very interesting...

In this grain marketing CWB issue;

That it is a group of "COLD WAR" decision makers.... that are now in the working in the "information age".

Assets are not simply something to fall in love with... but tools to get a job done. Attachment to assets can be deadly.

Western Canadian grain growers have a large portion of people who have roots in the communist erra... and often instantly we are taken back to the "cold war" mentality.

Much of the rest of Canada was settled at a much earlier time... during the peak of British and French power and prestige... a very different group from many of our western Canadain forefathers.

In this context, we need to get past the box we place ourselves in... and enter the "new" world that exists out side our "walls"!

[TOM4CWB]

Cottonpicken;

I believe the transfer of the environmental conscience of the urban population... back to the rural landscape...

A new vision of energy production involving the soil and land... the sun and rain...

That the environment: water, soil & air... how we treat them... that these are critical to our future and survival...

These concepts are being worked back into the urban public's minds and priorities. They intend, and are wealthy enough, to dedicate resourses to them on a personal basis.

No longer working just the inside of a factory for 45 years, or the individual's right to exploit the environment to make a fast buck...


Are these an acceptable vision of the future...

Particularily by the next generation... who have grown up in the information age.

Being drawn back to the land... outside the paved byways & buildings... are a very important part of the new utopia the "information age" society invisions.

[TOM4CWB]

Cottonpicken;

I have discribed both the abstract in the last couple of posts, as well as concrete actions needed we need to be responsible for; in my first couple of postings.

If you want pure motivational principal... it is this simple... to love my neighbour as my self... and to do unto others as I would have them do unto me.

Keep all contacts willingly, and respect your property and interests... under the expectation that you will respect my families property and interests.

[cottonpicken]

So you really are a politician.

"treat me good and i'll treat you better,treat me bad and i'll treat you worse"

[TOM4CWB]

Cottonpicken;

This is the "cold war" state your are in?

WOW.

He who seeks good finds goodwill,
but evil comes to him who searches for it.

Dishonest money dwindles away,
but he who gathers money little by little makes it grow.

The faithless will be repaid for there ways,
and the good man rewarded for his

Better a little with righteousness
than much gain with injustice

Acquitting the guilty, and condemning the innocent-
the LORD detests them both.

[cottonpicken]

??????????????????????????????


I'm trying to understand what your saying but there is some vagueness to your posts so i'll make a few assumptions.The cold war thing and communist comments are directed towards todays socialists or ndpers right?Although im not one, todays and yesterdays ndp are far from wicked and evil.They dont have all the answers but medicare alone(which some people respect and love)makes them a rational option.As far as comparing socialists to communists you could then call conservatives , fascists,both comparisons are stupid and WRONG.

One thing i will agree with you on is moving forward and growing through global relationships.

As far as the "state" i'm in i was just asking a few questions which you dodjed-like a politician would.Your answers were profound religios diatribes which belong in the spirtual section of this site.I dont care what god/gods you worship but Tom you should remember most people on this earth dont believe what you believe. So are they headed to heaven or hell because they dont believe what you do?
And the biggest question i have i seen on a t-shirt

"WHO WOULD JESUS BOMB?"


P.S.-dont worry i dont expect clear answers to any of this

[TOM4CWB]

Cottonpicken,

I posted these above... I certainly THOUGHT they were self-explanitory. Sorry if they weren't.

"Prosperity spreads when we share and communicate in the positive...

IF we are willing to build on our strengths;

When we decide to be unselfish/visionary enough to step outside the habit that drives 95% of things we do each day... that are not productive..."

..."Each and every manager needs to sit down with the patient Capital ( this is Joint Venturers, Company partners, Value Chain partners, involved family in the farm, and trusted advisors) at their kitchen table... and draw up a strategic plan... looking at what the next generation will be looking at... in 25 years from now.

If we don't plan for a prosperous future... we WILL end up somewhere else!"



My personal experince has been all about building these relationships in our farm business. Our experience has been positive... without exception, of who, we build these relationships with.

Curt was simply emphasising that JRI's experience was... and I was agreeing it is also what our experience is on our farm.

Those in our value chains, that are best equiped, we, each handle the risk we best can handle. If the risk created in the Chain is more than we can handle comfortably... we find a different value chain to work in... and create value there.

I didn't think this was complicated... we live and breath it each day on our farm.



I certainly find your "GOD" issues interesting... I am certainly not responsible for the relationships "GOD" has with others... he is perfectly capable of taking care of these himself.

Strange, I had never thought of Jesus as someone who "needed" to "bomb" anyone!

We seem perfectly capable of following our lower nature... and destroying ourselves!

I hoped the idea was... we would concentrate on the positive... and not go down that road!

CP... God Bless you!