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How do we increase returns 35%?

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    How do we increase returns 35%?

    God Bless Canada. We must learn to do better. We are very blessed... and can do much better.

    In the past couple of weeks interesting points of interest have entered my small but active mind...

    1.)I have had confirmed that 95% of what we do... is done because we just normally do it that way. Bad habits can cost big profits.

    2.) To change a habit, a person must repeat the new "good" habit consistantly for at least 10 consecutive occasions... for it to become a new habit. New habits that increase profitability... take self discipline and mental stability.

    3.) It is not worth fighting over a few cents here or there... when producers are being distracted from $1000's of dollars in profit...
    Many of us miss the real opportunities.... being capitialised on by folks like the Dairy Farmers through supply management. These opportunities are self dicipline based systems... that can create value for both growers and consumers.

    4.) Trust based voluntary free will relationships will net the highest profit returns... when respect and high quality service are the expectation from that relationship, and are delivered.

    5.) Over half of the world's human population are now too well fed... (they can easily afford more food and shelter than they need).
    These people will pay much more for the food they eat, if a positive trusting experience based atmosphere is included in the value of the food purchase. THis atmosphere is worth many times what the actual produce costs that they need to eat.

    6.) Marketing the produce our farm grows... can be enjoyable, and rewarding. By far the majority of the partners in the value chain... want our farm to be profitable... if they are linked into the "Human Experience" based value chain... it is our choice who we sell to... in most instances.

    Instead many growers choose the commodity "cheaper is better" discount marketing system... which because of poor planning and self dicipline... don't plan to extract a premium for their work.

    7.) Most people in most cultures demand a discount when buying food items. THis is part of the "entertainment value" of the food experience they enjoy.
    THIS MUST be incorporated into the sales program when setting up a marketing structure. Cost of sales is the base of any marketing structure... with "profit" the value above the amount paid to the grower for the produce. ANy other system of selling is foreign and will be misunderstood by the buyers of our produce.

    Conclusion:
    THe CWB "single desk" pool system commands a discount... because any buyer or commodity purchaser can easily see what "Designated Area" growers expect be paid... through the Pool "Initial Price". CWB sales staff know this... it is always in the back of their minds.... as is the PRO.

    These buyers of our produce know we are subjected to a buying monopoly and CANNOT get more that what the CWB pays us. THese people don't feel one iota guilty... as they believe we all signed up and "offered" our wheat and barley to them, of our own free will.

    Our buyers would and could pay us more... if we had the backbone to demand more for our produce... but we don't, so they won't.

    We would be required to deliver it in a timely manner with consistant high quality... we could easily extract up to 35% more if we were to use this self discipline and create better value.

    The CWB "Information system" is backwards. Growers reveal to buyers and endusers what prices they are willing to sell their produce for...

    However enduser/customer/ commodity prices are not transparent... and the producer of the produce is not allowed to demand more for their produce... in CWB marketed grain.

    Non-Board grains must take up the inherent system discount... often the load is too large on the non-board system... and it cuts into produce consumption.

    Prices for these products must drop to bring supply and consumption back into balance.
    Further our "designated area" Ag markets remain disfunctional because often the value chain can't extract enough to make up the difference and still survive.

    We have a large negative market inpediment... created by government monopoly legislation... that hurts everyone involved.

    I believe you folks asked what I was up to... THis is a VERY quick summary of the discoverys of the last couple of weeks.

    Outcome:

    How do we change our wheat and barley marketing system to extract up to 40% more?

    1. THe CWB MUST pay fair market value today... as it's cost of sales... not 65% of that value.

    2. Our wheat and barley marketing system is known globally and being unreliable and too often is not able to deliver consistant high quality produce when needed.

    3. THe CWB too often replaces produce by overdelivering quality... which ends being the wrong produce for the food being produced and sought by the consumer eating our produce... = a discount.

    We MUST change. If our next generation of Ag producers are to be excited and enthusiastic... they need to be rewarded for work with a reasonable return on their investment.

    We can do better. OUr system MUST change to honour those who work so hard to grow the food our world depends upon.

    I welcome constructive ideas on how to switch the CWB system... so we extract the extra 35% our of our consumers... who CAN afford to pay this amount more... instead of giving it to them.

    The CWB as a Food aid agency...

    CWB sales should not be handled as food aid (like Durum to Algeria is)... with those who can afford to pay... subsidising these hungry people (Some of these people in Algeria can pay more as well too)...

    Not CWB "Designated Area" grain growers stuck under the "single desk" need the freedom to say NO.

    Just say Yes... to choice... and the human rights for "Designated Area" to become people.

    Our neighbours need the freedom to make their own decisions...instead of us all being slaves... to a 35% discount!

    God Bless Canada!

    #2
    TOM4CWB, Whats with this "God Bless Canada" stuff? Did you watch the state of the Onion address, or speech, or whatever it was and get stuck in a rut with that moron B sh!

    Comment


      #3
      Yes, GAWD save Canada and her farmers when the CWB is dismantled/killed/squeezed or enacted out.

      I'm afraid that Tom gets caught up in his own rhetoric and even starts to believe what he writes.

      The goobledgook that Tom wrote would very likely lead us "back to the good old days" line elevator style of commerce where the Winnipeg Grain Exchange rules the roost again and Cargill, ADM, ConAgra will TELL you what you receive for your production. If you don't accept the terms...tough beans.

      The CWB gives us a tremendous advantage over individual marketing efforts and should be supported.

      Is it any wonder the the Americans hate the CWB...it works for our benefit and not theirs...what a unique concept.

      Comment


        #4
        Wilagro

        Tell us the CWB advantage in barley where the current "B" initial payment is $1.40/bu Alberta and we are struggling to find enough western Canadian malt barley to satisfy existing contracts let alone add on new sales at current high international prices (Canada is the only country with supplies)?

        Comment


          #5
          While you're at it, you can explain the $13/tonne premium on the 100 % EPO for feed barley when the PRO is already discounted by $20/tonne under the current international feed barley market (CWB posted prices).

          Comment


            #6
            Charlie: As I am not involved with the daily operation of the CWB, you will have to get answers to specific questions from the CWB. I am sure that they will be all too happy to accomodate you.

            Comment


              #7
              Willagro/ Burpert;very good attacks.Everything you both said was anti;anti U.S.,anti market,anti commodity exchange,but most of all ANTI TOM.Our ideas don't have to stand if we just go on the attack.Come to think of it we don't even have to have ideas;just attack the other guy's.Even better,as you have so often done so well,forget his ideas,just attack HIM.Obviously there is something wrong with all who don't see things our way.Its not their ideas;its them.

              Comment


                #8
                I forgot to mention,wil and burp,antiGOD.For us comrades collectivism is our religion.Never forget it.And the cwb is our church.It is alright to criticize the church though,but only when it deviates from our religion.Like for example with this absurd gate to plate deal where farmers can escope the pool.This is only appeasement,comrades.You must fight our church when it goes outside our religion.Otherwise we could have farmers all over our designated utopia adding value to their grain.How then could we share in that.How could we have power over them.

                Comment


                  #9
                  Nice to have you back Tom.

                  Comment


                    #10
                    Parsly was lost without you.

                    Comment


                      #11
                      wilagro

                      Questions were rhetorical only - the observations are based on facts. Others on the site are asking the same thing. Only trying to present the arguments for anyone who is sitting on the fence. May not be many but there are a few.

                      Comment


                        #12
                        Wilagro You don't have to be involved with the "daily operation of the CWB" to see there incompetence.Charlie asked you a good question using facts that are so glaringly obviouse.Nice try on avoiding the question.Instead of refering us to the CWB think for yourself and answer the question.But you won't because you can't.Your thoery was just offended by logic(ie. CWB's pro under world market prices.)So much for this so called premium.

                        Comment


                          #13
                          Burbert & Wilagro;

                          I am not the first, and will not be the last... to bring these issues forward. 10 years ago... these same marketing issues were front and centre.

                          If we know we must do better... we will improve.

                          I know innovation and careful fostering of personal relationships pays our farm and community dividends...

                          It is very easy to blame someone else for problems we ourselves can only be responsible to resolve.

                          Personal responsibility is the only solution to effectively create prosperity and wealth within our community.

                          Comment


                            #14
                            http://agriville.com/cgi-bin/forums/viewThread.cgi?985746031

                            wilagro posted Apr 16, 2001 21:49
                            --------------------------------------------------------------------------------
                            I am writing from my bunker as the flak flies above me. Now where is that white flag? The rather heated discussions over the CWB and the its impact have been great. However, I have a confession to make. I haven't produced any grain for years now...only enough for my cattle. Since they (Agricore) closed the local elevator, and world grain prices have hit the skids...what is the point? Most of my farm is seeded to forage crops.
                            I don't have the answers for solving the grain growers dilemna, but if you expect meaningful gov't assistance or even a consistent agricultural policy in Canada your dreaming in technicolour. The CWB policies at times do not make sense for certain sectors of the farming or business community but at least they have shown a desire to adapt and change (mostly as a result of producers demands).
                            Keep up the good fight and don't let the forces of the 'EVIL EMPIRE' (eastern Liberal b------s) get the best of you.
                            I will be collecting my OAP shortly...I will soon have more annual NET income than I received from farming. Having a TAXABLE income...will indeed be a pleasant surprise

                            Comment


                              #15
                              incognito: LOL...You must be getting desperate for something to throw at me.

                              What I wrote SIX years ago...my you must have worked hard to dig that up.

                              As a matter of fact, I still have a bin full of barley for sale when the price is right. I will be seeding some barley next year after I do some grassland ripping upper work. My drill and combine still works. I still work. I am still a grain farmer with a vested interest in marketing barley AND wheat when I produce it, through the CWB.

                              Sooooo...stick it in your ear.

                              Comment

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