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Arg. Export tax Hike... CWB Export tax Hike...

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    Arg. Export tax Hike... CWB Export tax Hike...

    Parsley,

    Hmmmmmmmmmm.....

    As I reviewed this article... it dawned on me the CWB does the same to "designated area" wheat and barley growers... this year... by holding back 20% of our wheat and durum exports and capping barley prices 30% below world values!

    Think about it... what is the CWB net effect?...

    A CWB Tax on "DESIGNATED AREA" WHEAT & BARLEY GROWERS... with a net effect cross subsidisation to supply management folks, livestock producers, and Canadian Consumers.

    No wonder Dairy Quotas are worth $30,000/cow production unit!

    Does anyone seriously think we have and easy win in the barley plebiscite?

    THINK AGAIN. Livestock producers are barley producers.



    Read the last CWB PwC study... who gets the biggest benefit of the CWB?

    NOT GROWERS.

    Our "designated area" CWB pool price that has not kept up with the increased cost for CWB "designated area" growers...

    Forcing growers to produce the grain the CWB sells inside and outside Canada at below the cost of production for many growers.

    What exactly is the difference between the Argentinian Gov... and the CWB's export taxes?

    At least in Argentina, all the countrys growers are treated the same... NOT LIKE IN CANADA.


    Here is the article:


    Argentina announces major hike on soybean export tax to fight domestic inflation

    http://news.tradingcharts.com/futures/7/1/87906917.html

    BUENOS AIRES, Argentina, Jan 11, 2007 (AP Worldstream via COMTEX) -- Argentina's government unveiled a new plan Thursday to fight inflation on basic consumer foods, announcing a major subsidy to hold down select supermarket prices that will be financed by a tax on soybeans.

    Economy Minister Felisa Miceli said the government would raise the tax on exported soybeans and soybean products to 27.5 percent from 24 percent. The added revenue, she said, would go toward subsidies on producers of key basic foodstuffs.

    The tax hike triggered protests by farmers and grain exporters in the world's largest soymeal exporting country.

    Inflation for all 2006 neared 10 percent, and President Nestor Kirchner, a left-leaning member of the ruling Peronist party, has vowed to keep prices in check for consumers still recovering from a deep 2001-2002 economic crisis. A presidential election in October is giving the issue new urgency.

    Taxes on other soy byproducts also are expected to rise to 24 percent from the current 20 percent rate.

    Miceli said the measure would raise an additional US$100 million (EUR 77 million) in the coming year for the subsidies granted to producers of everything from wheat flour to dairy, pork and poultry products - all in a bid to offset rising production costs.

    She said many producers have to pay dollar prices in a peso economy but subsidies would curb them from passing on their costs to local consumers.

    "This is a mechanism under which international prices can increase without having this felt at the (dinner) table," Miceli said.

    Argentines for 11 years until December 2001 had their peso currency pegged by law equal to the U.S. dollar, but the crisis that year prompted a more than 70 percent devaluation of the local money and many wages remain badly eroded.

    Miceli, speaking at a news conference, said the higher tax rates would begin to be applied starting Monday with soy oil products destined for foreign markets.

    Miceli said the subsidy would help hold down prices on bread, milk and other products in Argentina, a country of 37 million people where a third of the population is officially reported as living in poverty.

    The moves to hold down prices come as Argentina is bracing for more possible inflationary pressure.

    Powerful labor unions in March are expected to again begin pressuring for wage increases and independent analysts estimated that January inflation alone marked a 1.5 percent uptick.

    Inflation in 2005 stood at 12.3 percent but only reached 9.8 percent in all 2006.

    In March 2006, Kirchner's government blocked most beef exports by the world's fifth-largest beef producing nation - a step to hold down meat prices that was later gradually eased. His government has also signed an array of domestic price accords to hold down prices on everything from dairy goods to medicine and soft drinks.

    #2
    TOM: Basically the "cheap food policy" is alive and well in North America! And without a doubt the CWB is an instrument of that unwritten policy in Canada?
    I wonder what would happen if the price of feed barley was allowed to rise above what is a "made in Canada" price? What do you think it would do to the livestock industry? Would meat prices be allowed to rise to reflect that extra cost...or would the federal government suddenly find a need to allow in cheap imports?
    Well, what has happened in the past? Beef prices start to go up...and the government allows "supplemental quotas" in to bring that price down!
    Would that change?
    The hog and beef industry are changing...hogs faster than beef? If a large increase in feed prices, with no corresponding increase in meat prices,...what would happen? Could we see the end of the livestock industry as we know it?
    Now whether we like it or not, the hog barns and feedlots burned up a lot of that $2 barley and cheap feed wheat? I'm not sure if every livestock operator was getting filthy rich on the backs of the grain farmer...but I assume someone was?
    But be careful what you wish for? When the livestock industry is gone, it probably is gone for good? Suddenly there will be a whole lot of new grainland in production for those lucrative export grain markets? Might be hard to find a home for that light feed if we get a general frost or drought!
    Hopefully we are looking beyond the "export trade"? The export trade is subject to foreign government subsidies and so far our government doesn't look like it is very interested in getting into the big leagues?
    Hopefully we are looking at consuming more of our products domestically, whether through further processing or bio fuel production?

    Comment


      #3
      "Cheap food policy" is written by your elected officials Conservative/Reform and Liberal since consumers elect them. Things are no different in the excited states except their farm programs are better. Until there is starvation in North America , things won't change. Changing marketing systems or trade agreements won't do anything. That's my cynical view and I'm sticking to it. The drive to efficiency is all about cheaper food not survival of farmers.

      Comment


        #4
        Tom please explain how the board caps barley prices 30% below world levels. i dont know how it does or dosent.

        i can possily see some cause and effect of an 80% acceptence level for wheat.

        we had contracted 100% , but with 80% acceptence , sold carryover low grade wheat as feed to generate cash sooner.

        if you read minn. and USDA reports wheat usage is at its second lowest level in 20 years. You would think an 80% acceptence level is quite good, under the circumstances.

        Comment


          #5
          On the upcoming vote, what is the official position of Canadian Cattleman's, and of Alberta Feeders?

          Parsley

          Comment

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