Rayglen Malt Wanted

[kamichel]

BIG THUD JAW HITTING GROUND. Average price for 2 row malt net to me year end pro for the past 5 years is 2.65 per bushel. 4 dollars? Better not tell anyone in Saskatchewan. Market will get flooded.

[kamichel]

Actually seen something similar to that before where the malt company guaranteed the farmer a certain bushels of the crop guaranteed as the malt price even if it did not go malt. They also did not want to deal with the CWB. Never heard anything since that meating. 6 years ago.,

[kamichel]

back in 03 I believe, during the drought Canada malt got permission to give 100% of the PRO which netted me around the $4 dollar mark (perhaps with trucking premiums as well. Yet because that wasn't till late november that the CWB allowed them to do that , the supply had already mostly gone to the feeders, and they and other malters had to import barley.

[Vader]

The malsters are free to introduce these incentives anytime they want to. What they did in 02/03 proves to me that they can take advance deliveries and pay storage. The CWB has no storage unless we make producers pay for it.

If you really want the CWB to be able to play this game well then the CWB must be allowed to make capital investments.

[parsley]

I thought you boys had already made capitol investments in the Cayman Islands and Mexico.

[TOM4CWB]

Vader,

The CWB was offered BILLIONS to wind down the "single desk" and now you bring this up?

You have got to be kidding.

We would have $6/bu malt barley today... in central ALberta...

What malt premium does the CWB extract for barley growers... WHERE IS IT?

SHOW US THE MONEY CWB.

ANy 2 year old can see the CWB is BAD..., and they deserve a sound spanking.

[TOM4CWB]

guess I'm still new to this site Vadar, and your train of thought. Tell me how and why the CWB needs capital assets? I deal in feed grains with a variety of brokers,(to me the CWB is no different) that have no storage. We have excess storage at the west coast now as it is. My question, why can't the CWB work for farmers, offer the prices needed to attact the product, honour 100% of any contract and reward the producer for keeping the malt barley in condition till its needed?
If your heart is set on capital assets, then why didn't you start aquiring or building years ago, with the interest earnings from the foreign debt on grain sales? And not demand a $1.5 billion cash handout by the Canadian tax payer??

[wedino]

Hey Vader, Re your statement: “We all get an average price for the year whether we sell through the CWB or not.”

It has been stated on this forum that the cwb has admitted to forward selling the '06 malt crop at a very low price in June or July '06. Obviously this is true, what other reason for the low malt pro? How many tonnes of malt barley was offered to the cwb in June & July? I didn't offer mine until the harvest was complete, & I'll bet this is true for most farms in western Canada. Please tell me, how can the cwb make forward sales before the grain is actually offered to it? My understanding of the act is that the cwb cannot offer grain for sale until that grain is actually offered to the cwb by the producer. One thing this farm would never do is forward price into a very low market. Would rather carry it & watch market develop.

[Vader]

erik,

how many brokers are there out there now? Do you really need one more? If you want the CWB to be a broker thats fine. That won't be the same CWB we have today. It won't be any different than a hundred other brokers. It won't add value to farmers. If it is there at all it will be to add profit to its own bottom line. It will have a limited ownership structure who may or may not be farmers. (probably not).

The CWB must be able to expand its business to remain strong. It must be allowed to market other grains and it must be allowed to own assets. There is not another major grain company on the planet that is not allowed to make capital investments.

The interest earnings on the foreign debt would have been a great way to start an equity base for the CWB if the legislation permitted that but for now it does not and the Harper conservatives are not likely to allow the CWB to do anything that might make it stronger or more flexible.

[kamichel]

Just adding to Weddino comment.
How many tons did farmers contract for new crop in 06 when prices were at the lowest. Close to 0
Now compare to how many tons are contracted already this year when prices are nearer to highs. Lots
Lesson to be learned is that farmer pricing ( the one who knows his expenses and what he needs to make a profit) does better in the market than the CWB.

[charliep]

Perhaps an even more interesting question is how much 2007 malt barley the CWB has contracted. My understanding is the CWB has told customers they will walk on the contracts in an open market setting. The contracts currently limited value(maltsters and exporters are responsible for selection - no farmer grain/no value to the contract).

[kamichel]

Vader these grain brokers that we use are very similar to the CWB in that they sourse grain for end users. Have very little capital investment. Get a share of the grain sold.
The differences is that I have a choice to use the broker or not. I give several brokers a list of grains that I have on hand and even acres of different grains planted. Why not, the worst that can happen is I tell them where to go with their prices.
Buyers like to use brokers because of the ability of the brokers to sourse grain as needed and organize trucking. So the broker fees don't neccessarily translate into less pay to the farmer.
I have had brokers put grain that is of less quality into a market where the quality if of less importance and my profit was maximized. I would even say that any brokers I have used with just a few employees work more closely
with me than the CWB with Sorry don't know how many employees, lots more.
And one other thing Vader your comment that the Harper government wont allow the CWB to be more flexible and stronger, I don't buy that one. The Harper government is saying they will support the CWB in a more open market, what part of that did you not hear. They say it all the time. The opposition is killing themselves in conspiracy, fear mongering, Guess you listen to them.