CWB system is padding the pockets of U.S. grain companies

[Fransisco]

Hmm, look at that, the carryout was unchanged. In other words a wash from year to year.

The question of grade and price per grade bought and sold is an interesting one.

I'd betcha a dollar to a donut the Yanks sold their lower quality stuff for as good or maybe even better than what they paid for the good stuff.

[chaffmeister]

Agstar77:

You say "Isn't it strange that the CWB is always accused of undercutting, when the U.S. is probably a more likely culprit."

<b>How is it that the "U.S." can undercut. Let's not forget that the U.S. is a multiple-seller market - which exporter did the undercutting? Let's say it was Cargill. How could they do that and still make money when they're competing with say, Harvest States, when it comes to country origination.

Anyone familiar with the US grain trade knows that trading margins are not fat enough to "undercut" and still remain competitive.

Competition between multiple-sellers keeps them disciplined.

What disciplines the CWB?

[TOM4CWB]

Agstar77,

It is VERY unlikely the US enduser would re-exported Canadian Durum, why would they?

Guaranteed price, quality, volume, inventory control... all of which the CWB can supply when US growers won't or can't afford to...

You gotta love those Cannuks... they sure know how to make a sweet deal!

Proverbs(20:14) “It’s no good, it’s no good” says the buyer,

then off he goes and boasts about his purchase.


P.S.
I seem to recall in the middle of the last US court Challenge... the CWB saying the US was not a premium market... and that the CWB could do much better (extract much more) direct marketing to the end user on the world market... cutting out the US middlemen...!

[parsley]

agstar77,

Single-deskers seem to try to be damaging to buyers and relationships.

The most important buyer Canadian farmers have is the USA. When you take into consideration price, proximity, volume and credit worthiness, the US market has been and is, over the long haul our most valuable market.

And yet, the CWB doesn't know how to value their best buyer. All the training and professionalism talk yields what? Yankee-bashing... and it has to stop.

I see negativism creeping into single-desker posts....and it is destructive and unworthy of anyone courting a buyer.

The CWB needs to treat both DA farmers and AMerican buyers with good will and respect.

Parsley

[Fransisco]

Here, here to that parsley.

I am also sick of the anti-americanism, buyer bashing, of the monopolists.

[TOM4CWB]

Agstar77,

How many US companies use a "single desk" or pool accounts to aquire the grain they sell?

None for US grain that I know of.

The primary reason the CWB/Accredited CWB Exporters CAN undercut is simple.

Pooling...

Pooling that extracts wheat and barley from "designated area" growers @ 60-70% of fair market value.

THis pool then provides a slush fund for the rest of the year... so undercutting is possible at any moment.

And further... if that was not enough... if the POOL "undercutting slush fund" runs out of "designated area" growers money...

The Taxpayer of Canada then steps up to cover the cost of the "undercutting slush fund" through Pool guarrentees.

Give your head a shake Agstar77... take a reality break for a second!