What PRODUCTS does the CWB market?

[wd9]

Come on Vader, cheer up, it's Christmas!

[TOM4CWB]

Chaffmeister,

A big reason we have a problem in barley for human consumption today is because of the grain "product" price discrimination the CWB offers.

How can the CWB justify selling barley (or wheat for that matter) at a 25% discount to an end use in China... when the Fair Market Value is 25% higher? This is like the Dairy people subsidising milk into the export market at a substantial discount.

Since we KNOW the export sales of milk at reduced rates is illegal under WTO... why isn't Malt to China being subsidised by domestic and North American sales in the CWB pool illegal in principal as well?

This from my Newsletter in AU;

New Season Barley Pools ABB have increased new season pool estimates by $8/t for malting barley, and $3/t
for feed barley, to $328/t gross for malt 1 and $241/t gross for feed 1.

Do you know where the Difference between $328AU ($.9022=$295/tCDN) and our CWB PRO @ $205CDN.

Can anyone argue CWRS wheat is any well managed when our new PRO says a 1CWRS13.5 is worth $216/t... after reading the AWB report below?

New Season Pool Estimates and Cash Pricing In their tender on December 13 th , AWB were asking $287/t for H2 wheat at Geelong. AWB are supposed to sell into the domestic market at the same price they can achieve for pooled wheat in other markets if they are in fact maximising returns to growers. So, $287/t should represent something close to the pool EPR. In fact the pool EPR is $247/t, so AWB are currently taking $40/t between what they sell wheat for and what they are paying to growers, before deducting another $40/t for storage and handling costs and finance charges. That means that AWB are allowing $40/t for their own costs and for any hedging losses they may be sitting on.
The $287/t at Geelong is actually lower than we would expect given that AWB are paying growers $283/t for H2 delivered port. That would put the cost of that wheat to an enduser well above $310/t ex Geelong.

Why are we $100/t short? Our 05-06 marketing year grain just cleared through our ports by Nov. 1 2006... from my understanding of how our pool systems work. I was delivering 05-06 wheat in the last few days of September... in case anyone forgot!

[wilagro]

"The CWB's capability to provide technical assistance and after-sales service is unparalleled within the international grain trade. The CWB works in conjunction with other agencies such as the Canadian International Grains Institute (CIGI), the Canadian Malting Barley Technical Centre (CMBTC) and the CGC to offer technical assistance for customers. CIGI's facilities in Winnipeg include state-of-the-art pilot-scale milling, baking and pasta making equipment. The CMBTC's facilities also include world-leading pilot-scale malting and brewing equipment. The CGC, with its Grain Research Laboratory, is responsible for quality control, conducting research into optimizing the processing benefits of western Canadian grain, providing quality testing services and monitoring to ensure that Canadian grain exports meet the strictest international safety standards."

It would be a terrible shame to lose the CWB and its great service to Canada and its farmers.

Perhaps you anti-CWB pipples should take a good look at what we are about to lose IF Harper and his MINORITY gov't gets its way.

[wd9]

Wilagro, read a little closer. It isn't the CWB providing those services. Those other institutions would continue to exist with or without the CWB and would continue right along as usual although the industry would need to take leadership in defining priorities and secure funding.

[chaffmeister]

wilagro:
you quote the CWB here ........"The CWB's capability to provide technical assistance and after-sales service..."..........
and then say it's a shame that we're losing it.

1. Are you aware that those nasty multinationals (you know, the AE's) travel to foreign customers to provide exactly that - technical assistance?

2. Are you aware that the CWB marketing people (include Measner here) ALSO make the trip over to these foreign buyers?

3. Did you know that sometimes they would see each other in the airport or at the customer's facility?

4. Did you know that this is totally redundant?

5. And did you know (and I love this one) that the CWB often hires consultants to provide this "technical assistance" - because the CWB doesn't have the expertise in-house?

So who wants to see the CWB's travel expenses for the last five years (who, where, when and how much)? And who wants to see the list of consultants and what they provided?

[chaffmeister]

hit the wrong key - I'm not finished....

wilagro - my point is that we won't be losing any of what you refer to - in fact, we'll be saving a whole bunch on travel and perhaps payroll.

[chaffmeister]

Just to whet your appetites;

In 04-05, the CWB's travel expenses were about $2.3 million. (page 63 of the Annual Report).

That's $9,000 per day counting work days only (250 days).

Consultant fees are often called "professional fees". On this the CWB spent just a smidge over $10 million (in one year).

That's about $40,000 a day. I wonder how much of this is for those consultants that help the CWB with the "technical assistance" upon which its reputation is based.

Anyway, nice work if you can get it.....

[silverback]

Is the access to information available for this agency yet?

[silverback]

You can almost smell the aroma of Adscam in those numbers.

[parsley]

The 10lb New England lobster@butter made me forget what I was saying.

Parsley