Special deals revealed

[chaffmeister]

Special deals revealed 12/29/2006

The Canadian Press reports the Canadian government moved a small but important step closer toward possibly ending the Canadian Wheat Board's (CWB) marketing monopoly last week by firing board president Adrian Measner, who had been fighting the new government's efforts. Agriculture Minister Chuck Strahl said "it's time to make a change." In response, a number of CWB’s customers have sent letters supporting Measner, a 30-year CWB veteran.

It’s no wonder some customers are supportive. Mr. Mohamed Kacem, the Director General of OAIC (the Algerian state trading organization involved in wheat and durum production, handling and imports), recently told an Algerian newspaper that CWB provides the Algerian office with a series of guarantees and benefits that are not to be found anywhere else. "... (CWB's) selling prices in Algeria are very low, since our country benefits from preferential prices," Mr. Kacem said. "This preferential price saves Algeria several tens of dollars per tonne purchased. No other country gives us such benefits." We're sure Canadian durum growers, who've been told the CWB returns premium prices to them, will be happy to know that they bought their market share in Algeria at a cost of "tens of dollars per tonne." The CWB calls this "marketing."

CWB leaders have argued that any change to the monopoly would require a farmer plebiscite as well as changes to the wheat board's legislation. Strahl will hold a farmer vote on ending the CWB's monopoly on barley early in 2007, but he has said the wheat monopoly will remain in place at least until July 2008.

Source: http://www.idahowheat.org/news/default.asp?id=2759

[Willowcreek]

Chaff, I have no doubt in my mind that there is funny buisness going on in Winnipeg.

My question is why would they give our grain away?? Who are they trying to impress??

[parsley]

Grain always has value, particularly in nations where the people are hungry.

Canadian farmers don't get enough money, we know that, but Maurice Strong does. Claudia Rossett is following the money. Closely.

Interesting exerpt from:

http://rosett.nationalreview.com/

Follow what Claudia is dredging up.
I fully expect to not only see Tongsun Park and Maurice Strong's names to be stars in this "suitcase-full-a-money" drama.


"In opening the account, Humaym provided a phone number, 614191, testified Azzouni, which was the same phone number provided by Park, when less than two months later he walked into Azzouni's bank branch and opened an account under the name T.S. Park. The government showed the jury copies of bank documents with the matching phone numbers, and relevant names and signatures. Azzouni further testified that having deposited $700,000 in cash, on Sept. 14, 1997, Park returned to her bank office later that same day, and had four checks issued on his new account. The jury was shown bank documentation for all four checks:

One for $30,000 to "M. Strong"
One for $45,000 to "CMDC Corp."
One for $500,000 to "Suter's Tavern Inc."
and one to Park himself, to buy $50,000 worth of traveler's checks, denominated in thousands."



Read on. Follow the money. It leaves an imperceptible stench.

Tom4CWB has been following the money!

May you live in interesting times.

Parsley

[TOM4CWB]

Chaffmeister,

It wouldn't be so bad if the CWB were honest and had our grain give aways matched by Food Grains Bank dollars.

In the manner done it is simply not acceptable.

Parsley,

It will be interesting if the US gov. will follow the money... and get to the bottom of this.

I hope the Bush administration can wrap this up by 2008. It seems odd that more hasn't been done before now!

[silverback]

"... tens of dollars a tonne"???

How much is that? 10? 20? 40? 60? 90?

Is there a access to information act in Algeria?

[SASKFARMER3]

For years I have been saying isn't it funny that the price a farmer in ND gets is say $4.75 a bushel in his pocket freight off etc. That's $5.32 Canadian. Or almost the same price the CWB PRO is in Vancouver minus the freight gives me a return of $3.82 in Saskatchewan.But I am then reminded by CWB supporters that the US Price is different, then in another breath I hear how the US price is really the world price. So does that mean that the CWB Simply sells our grain FOB the FARM and discounts the sale by the freight, that's 10 10 10 10 10 off for our good customer Algeria. WHO gets screwed every time ME the Canadian farmer. KILL this puppy sooner than later. THERE IS NO PREMIUM FOR OUR PRODUCT WE HAVE BEEN SOLD A BILL OF GOODS FOR WAY TO LONG!

[SASKFARMER3]

The more I think about this the more mad I get. If one checks prices around the globe and Internet is great place to do that. Also getting to know people all over the place helps to.
For years we have been sold a bunch of crap from our CWB and Liberals NDP etc. on how we have a superior product and how the CWB gets us a premium for this product. And for years I have seen how my relatives in the USA get more for their Crap grain than I get for this superior product etc.
SO WHO IS FOOLING WHO. All CWB Supporters Show me the Money already or let this Puppy go the way of the Dinosaur.

[chaffmeister]

I have found a similar article to the one previously posted; this one is from an Algerian website – unfortunately only in French. It’s probably where the other source got the information ion the first place. I got a friend from the grain industry to translate it (at least tell me what its saying):


The Canadian Wheat Board has just finished its seminar at l'hôtel Mouflon d'Or, concerning the cereal production, harvest and appreciation of the characteristics of its durum wheat exported during this year. A meeting considered to be convincing by the Algerian representatives of the ministry for Agriculture, in particular the director general of the OAIC, Mohamed Kacem, who declared that the Canadian production of this year is of “excellent quality”. According to the director of this public office in charge of the procurement of cereal products, “the choice of Canada as single supplier of durum wheat rests on a certain number of objective elements which make that Algeria gains much from this relationship based on confidence”. Indeed, Canada offers to the Algerian organization a series of guarantees and advantages which one does not find elsewhere; i.e. – they offer a tonnage that has some flexibility; they offer pricing options – they can price the contract at different times of the year and they offer No. 3 AD with a small premium for No. 2's and a discount for 4's; and they provide a flexible shipping schedule.

Moreover, the quality of this harvest reinforces this exceptional relationship between the two parties. As for the qualitative control of Canadian durum wheat, the director general of the OAIC wanted to be reassuring, “the CWB guarantees their tonnage sold to Algeria because the Canadian government controls the sales (i.e., CWB monopoly controls the Canadian sales”), stressing that “the selling prices in Algeria for 400,000 to 500,000 tons of durum wheat annually are well known since they are preferential prices. The latter saves Algeria several tens of dollars per ton. For control (we’re not sure what is meant here), they allow Algeria an advantage of more than one dollar per treated ton”. To distinguish themselves from traditional competitors - the United States and France - and to be firmly established in Algeria, Canada excels in offering other services: technical support (probably CIGI courses) and we send people over to teach them how to mill the durum.

Also, the CWB assumes responsibility of the expenses of loading, facilitations granted in the mode of payment (not sure what that means).

……..there’s more but it refers to the state of the Algerian crop and internal policies unrelated to durum imports.

Let’s assume for a minute that the “concessions” or “advantages” the CWB provides are technical support (CIGI courses and on-site consulting) and things like flexible tonnage, flexible shipping and pricing options. The CWB has an excellent relationship with the Algerians going back about 35 years. The CWB has been an excellent supplier guaranteeing shipment when others have failed to ship as committed. This has meant a lot to the Algerians and has cemented the relationship. I applaud the CWB’s commitment to the business.

These are all good things if you can offer them – but IMHO should come at a price. Most people would assume they would pay a higher price for “guaranteed” delivery, flexible terms, etc, not a lower price. So if we have a better program – price, product, service, etc – why in the world would the Algerians be talking about better prices in “tens of dollars per tonne”? If our services and guaratees are so valuable, the Algerian should (and would) pay MORE for Canadian durum, not less. At least this would then be consistent with what the CWB is telling us! (When they say they get premiums because of extra services and guaratees based on their control of the crop.)

[TOM4CWB]

Chaffmeister,

The CWB benefit is clear...

“the selling prices in Algeria for 400,000 to 500,000 tons of durum wheat annually are well known since they are preferential prices. The latter saves Algeria several tens of dollars per ton. For control (we’re not sure what is meant here), they allow Algeria an advantage of more than one dollar per treated ton”

It is clear who is extracting a premium out of whom... and what the "benefit" of the "single desk" is used for.

Perhaps if our safety net programs were cost based there would be less objection to these type of sales agreements... if we wanted to depend on gov. for our survival.

If we went back to early 80's CWB pricing programs... with initials being set at a reasonable level on April 30... the "single desk" view of assuring income would be much less offensive.

THis clearly indicates why the US growers... and 140 countries believe State Trading Enterprises are trade distorting.... because obviously they are.

[sawfly]

it sounds like good marketing,
what other reason for the decent returns on duharm compared to spring wheat over the last 10 years.

the stocks to use ratio was always worse for durham than spring, but the board generally managed a 1$ preiuym for durham .

[liberty]

I had always thought that even if the CWB got a premium in some markets, it would most likely be offset by the higher costs of dealing with those premium markets, resulting in no net benefit at the farm gate. Now I'm getting confirmation that not only does the wheat board offer substantial price discounts to gain market share, but that it further inflates the benefits to the buyer with all sorts of goodies beyond pricing, resulting in even lower farm gate returns.

How anyone can call this good marketing is beyond me.

[SASKFARMER3]

The main reason that the CWB wont open up its books?
1.Farmers would see how piss poor job they are doing in selling grain
2.Preferential treatment to our customers, not farmers.
3.Warbiton contract (one winner Warbiton)
4. Price Premium for superior product (End User not Farmer)
5. Etc.
They cant open the books because there would be all out war against them.