Pricing Versus Marketing

[ianben]

Hi cm
Thanks for the reply. I respect your views.
I HAVE feedom to sell but don,t see it as an advantage and certainly not the solution.
When U.K. started to export wheat we set up B.C.E.British Cereal Exports to promote our produce because we thought CWB gave you an advantage.
Perhaps the grass is always greener.
I too knew wheat or any crop could be a fuel but it is the value of wheat as a fuel which suprises me.
I did not realise it was now worth MORE as a fuel than for food. Did you?
Or is this not so in Canada?
However with rising energy prices and the fossil fuel global warming issues.
how long will it be before it is.
I think we should be telling customers now! New customers more demand higher prices.
So what value do Ed's and JD's figures put on your wheat?
Have you ever sold for less like me?

Re Market reports you don't think they could be improved in ANY way???

Looking forward to your reply.

Regards Ian.

[TOM4CWB]

Ian,

Your wheat for fuel is an interesting concept, too bad the CWB has a "monopoly" and can force this use of wheat through the "single desk".

The only exemptions to CWB marketing is for the feeding of livestock.

That is right, check the CWB Act. Wheat and barley usage for anything else is against the law, if interprovincial or export sales are involved!

The CWB created their own illegal exemption for the ethanol industry, which is another reason that large plants will not set up in western Canada, which would depend on exporting their "wheat or barley products" the ethanol!

We are so good at recking ourselves aren't we?

[ianben]

Hi Tom
Could you give me some figures on the Canadian prices?
You know one bushel equals cost to heat house/day or 3tonnes equal 1000 litres oil.
Have you ever sold for less like me?

Regards Ian

[TOM4CWB]

Ian,

Without our Alberta gov subsidy, and net of the Federal 4 cent tax, diesel is worth about 42 cents a litre.

I guess that means $140.00/t. if it take 3 tonnes to make 1000 L.

I would expect my average selling price for human consumption wheat to be over $160/t.

Does this help?

[ianben]

Thanks Tom
I was begining to think this information was a trade secert.

I think this information helps a lot it might even be a solution.

I think we can use the price of feed wheat in this equation. Ed says any grade will do.
I presume your milling wheat prices are based on feed plus depending on quality.
Here they range from £3 for biscuit wheat to £20 for what we call milling 76kg/hl 250 Hagberg min. 13% protein.
I don't know how this compares with your prices in Canada,but if it is similar wheat in Alberta must be worth MORE now as fuel than food.

I know your wheat is some of the best in world. We eat only Warbuton's bread you can taste the sunshine!!!! It costs about 80p a loaf,the cheapest supermarket loaf is 30p,so you can charge for quality.

Perhaps we should check out these J.D. figures first,but wheat as a fuel looks a like the start of a PRACTICALsolution to me.

A green fuel will have a premium global warming Kyoto agreement all we have to do is market it.

A job for CWB WHILE you try to change it????

Those profits recentlyanounced by Shell
etc.truly were immoral,perhaps we can create some real competion.

What do you think?
Would these prices be the same im Sask. and Manitoba?

Regards Ian

[TOM4CWB]

Ian,

I guess part of our problem is that natural gas is piped into everyones house, and is really simple. Turn up the thermostat! Further gas has been much cheaper than heating fuel.

If anyone was really worried they could have hedged their gas last fall at "cheap" long term prices!

Sask and Manitoba I am told have a regulated market, and are still working with "cheap" gas costs.

I find it curious to consider burning wheat, as I find it difficult to beleive a net "green" benefit after fuel inputs to grow the crop are added up.

What is the net cost of energy to grow 60 lbs of wheat?

[ianben]

Thanks for the reply Tom
I do not realy see wheat as a fuel for homes.
I see it as a fuel for industries who want to give a green image to their customers, I am sure you have them over there. The ones who say this bag is made from recycled paper.

I hope Ed's stove is the MF 780 and bigger better one is on the drawing board.

Do you have a wood burner for cheaper heat when it is convient to use it.
I do.

These are the situations I would see a market for fuel wheat.

I agree about the energy use to grow it
that is why I am so SURPRISED by the prices, and I presume you are.

If the J.D. figures are right it IS now cheaper than oil.
Perhaps this says just how LOW wheat prices really are.
Facts are facts and if we can find a better price elsewhere, I think we should go for it full speed.

What do you think?

Regards Ian

[parsley]

Ian, I disagree with your statement, " I do not realy see wheat as a fuel for homes. "

In the very near future, small turbines will manufacture electricity from almost anything you want, ....natural gas, wheat, oils, etc. They are small enough to fit in the trunk of your car and will provide enough electricity for manufacturing plants. Farmers can be in an immensley beneficial position....using ethanol from grain for example. Every farm can have one. We just have to make sure the governments don't kill it the idea with taxation.
What are your taxes like there ianben?
Parsley

[ianben]

Hi Parsley

That is fine just, proves my point. I don't care who burns wheat just so long as we start to market it.

I was just trying to show the market is huge and green fuels can command a premium like milling wheat.

CWB must be in a better position to market this than you or me. We need all the salesmen we can get!!!!!

I understand you believe the present situation is unfair. It looks like there is room for improvement to me too.

But it will not happen today or tomorrow
Wheat as fuel could be marketed NOW.

Could you support this WHILE you fight the CWB?

Would you like a small share of the profits announced by Shell etc???
I sure would 0.000001% would be fine.

Regards Ian

[ianben]

Sorry I forgot to mention tax.
From April 2001 U.K.businesses will be subject to a Climate Change Levy.
A tax on fossil fuels to help meet our Kyoto comitments.
It is estimated to INCREASE enery cost by 10-15%

So governments might help on this one.
It depends on how it is marketed THE PR WOULD HAVE TO BE PERFECT.

Defenatly not a job for me!!!!!!!

In my experience governments support what they think will get them re-elected every time.

What is Canada doing about Kyoto comitments?

Regards again Ian.