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Myth(by CWB); Myth Busted on Algerian Durum

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    Myth(by CWB); Myth Busted on Algerian Durum

    What about CWB sales to Algeria?

    Here are the two latest letters between the CWB and US Wheat Associates:

    "USW responds to CWB
    In response to the article “Special deals revealed” in the December 28, 2006, issue of Wheat Letter, USW President Alan Tracy received a letter from Mr. Greg S. Arason, President and Chief Executive Officer of The Canadian Wheat Board (CWB) on January 30, 2007.

    Mr. Arason’s letter:

    Dear Mr. Tracy:

    I noticed your December 28, 2006, Wheat Letter and its reference to Algeria. We have taken the liberty of advising the contents of your newsletter to Mr. Kacem, the Director General of the Office Algérien Interprofessionnel des Céréales (O.A.I.C.).

    Mr. Kacem has advised us that some of his comments in the original article in the French daily were not properly interpreted by the journalist. Mr. Kacem feels the relationship between the CWB and O.A.I.C. is a commercial one first and foremost and that prices are based on international market values at the time of business.

    A review of the original press article in French clearly shows that at no point does Mr. Kacem say that the O.A.I.C. enjoys “very low prices.” The main message in the Algerian newspaper article centered on the positive commercial relationship the CWB and O.A.I.C. have enjoyed since the early 1970’s. That longstanding commercial relationship is also built on quality assurance, mutual confidence and technical support.

    I felt it necessary to provide you with our view on this matter. I ask that you correct this misunderstanding by reprinting this letter in the next edition of your Wheat Letter.

    Yours truly,

    Greg S. Arason
    President and Chief Executive Officer

    ************************************************** ************************************************** ************************************************** **********************************
    Mr. Tracy’s response:

    Dear Mr. Arason:

    We received your letter of January 30, 2007, presenting your view on an article published December 28, 2006, in Wheat Letter referencing a news article quoting Mr. Mohamed Kacem, the Director General of the Office Algérien Interprofessionnel des Céréales (O.A.I.C.). You make one specific point and one specific request I’d like to address.

    You indicate that “at no point does Mr. Kacem say that the O.I.A.C. enjoys ‘very low prices.’” After reviewing the original article published in French December 17, 2006, on page six in La Liberté, Quotidien National D’Information, we agree that the translation we used originally was inaccurate, and we apologize to Mr. Kacem for quoting him incorrectly. However, the article does attribute the following statements directly to Mr. Kacem:

    “The guarantee is that the Canadian government carries out the quality controls on the products,” he [Mr. Kacem] adds, stressing that the selling prices in Algeria are well-studied, since in fact preferential prices are applied to our country. This preferential price saves Algeria several tens of dollars per tonne…“There is no other country which grants such advantages to us.”

    Thus we believe the meaning of the statement matches the conclusion we made in Wheat Letter that the buyer believes he got below-market prices. Parsing the language of the translation does not change the message that CWB appears to have bought its durum market share in Algeria at the expense of western Canadian producers.

    You also asked that U.S. Wheat Associates reprint your letter in the next edition of Wheat Letter. We are happy to do so along with the correctly translated article from Liberté, Quotidien National D’Information as well as to acknowledge our inaccurate original translation. In return, we ask the Canadian Wheat Board to reprint this letter on its Web site where your letter to USW is posted.

    Sincerely,

    Alan T. Tracy
    President"

    http://www.uswheat.org/

    #2
    Topic: CWB system is padding the pockets of U.S. grain companies

    "Vader posted Feb 25, 2007 22:11 http://www.agri-ville.com/cgi-bin/forums/viewThread.cgi?1172263949
    --------------------------------------------------------------------------------

    Francisco,

    You start with a few numbers, make a bunch of erroneous assumptions and then come to a ridiculous conclusion. You should admit that you know nothing about the durum market in the US. You know nothing about who is buying and selling durum wheat down there. You know nothing about the values that durum wheat is trading for in the US. You know nothing about the grades of the durum wheat that is being traded in the US.

    You should have some honesty and decency and go back to being a skulker here. You should quit posting lies on agri-ville."

    Perhaps an apology would be in order here Vader?

    Comment


      #3
      Yeah, Fran should apologize!!

      Comment


        #4
        Agstar77,

        Anything less from you Agstar77, would have been really out of character for you...

        We're headed for heavy ice folks...full fire to the engines on the Titanic... Ramming speed...she's infallable... and fool proof!

        Comment


          #5
          So Tom:
          you want the CWB to magically export 4.5mmt of durum at the same price the US exports 0.8mmt? Did you and Frisco attend the same math and economics classes? What was the quality of the US's 0.8 MMT? We probably exported this many tonnes of of 4 and 5 amber durum.

          Comment


            #6
            Mr. Hin,

            You said, "So Tom:
            you want the CWB to magically export 4.5mmt of durum at the same price the US exports 0.8mmt"

            No Mr. Hin, Just like with corn, corn in Canada rises as US corn gains value!

            In Canada barley rises as corn rises in value...

            As soy oil rises in the international market place... so does Canadian Canola values.

            AS wheat, soybeans, corn, oats, and many other grains rise... surprise... we were offered $6.25/bu for yellow peas... for the export market.

            I would appreciate it if the CWB would contract the acres it needs for the pool accounts... lock them up with the growers that want to pool.

            For the rest of us that need transparent daily prices... that reflect international values...

            We can cash sell into a transparent market. I am sick of the CWB selling everything through the pool... and the CWB sales dept. deciding to price discriminate.

            We price Discriminate in Canola every day. Supply and Demand. Bid and Offer. Someone on each side.

            "Designated area" growers need the right to say yes or no to a sales offer... just like we do with peas or Canola.

            Again, if some want a pool... sign up to a pool... and those who do must be bound to that pool. We have marketed seed for decades this way... and it works with any participants who are reliable and honest.

            THis is not rocket science.

            It is simple respect that needs to allow grain growers to be human beings with integrety, self discipline, and earn a decent honourable living.

            A fair days wages... for a fair days work.

            Is this so hard Mr. Hin, for you to understand?

            Please get out of my grainery... I need to be able to close the door, or open it... it must be my families choice... not some arrogant sales clerk at stupidstore that doesn't know what my farms needs are or the value of the grain in our bin!

            Can I be any more polite than this?

            Comment


              #7
              We had that letter on another thread, Tom4CWB, but read this and then comment if Ontario wants to go back, or join the CWB:


              Here's from the CWB 2004 webpage:

              QUOTE
              It's your choice
              The Ontario experience
              It's been called the "Ontario Experience".

              Wheat growers in Ontario used to sell their grain under a single desk, similar to the marketing structure used by western Canadian wheat and barley growers through the CWB.

              But that came to an end when Ontario wheat farmers decided to go it alone. Preliminary numbers indicate that the loss of the single desk has hit Ontario farmers hard.

              Posted prices at southern Ontario mills are close to $1.00 per bushel lower than what Prairie wheat farmers are getting at the same locations. For example, the price for CWRS sold through the CWB to a southern Ontario destination was $6.77 per bushel on March 25, 2004.

              On the same day, cash prices available to Ontario farmers for Hard Red Spring wheat – roughly the equivalent grade – were under $6.00 per bushel.

              The loss of Ontario single desk has meant the loss of the Ontario wheat growers' marketing clout, and with it, reduced returns.

              The lesson is clear and important. When farmers sell together throught the CWB, their power to get the best price increases.

              UNQUOTE (by the CWB)

              Comment


                #8
                Tom4CWB: It isnt that hard to sell 0.8 mmt's of durum at a higher price than it is to sell 4.5 mmt when the total export market is only 5-6 mmt per year. Especially when the USA's 0.8 mmt of exports are of top grades to top customers.

                Your input to commodity marketing is nothing less than ideology garble.

                Ps: what do you have against Super store clerks? Most of them are students trying to pay for the costs of a higher education, and future breadwinners of our economy.

                pss:
                when was the last time you worked a full day on the farm? between your 24 hour postings on agriville, and your trotting around to every farm meeting from here to timbuckto, I bet your fingers dont get to much MACHINERY grease on them. How many hired men on your farm?

                Comment


                  #9
                  pss:
                  when was the last time you worked a full day on the farm? between your 24 hour postings on agriville, and your trotting around to every farm meeting from here to timbuckto, I bet your fingers dont get to much MACHINERY grease on them. How many hired men on your farm?

                  And how is this any concern of yours, Benny?

                  Comment


                    #10
                    Mr. Hin;

                    Just in case you missed it:

                    "Is this so hard Mr. Hin, for you to understand?

                    Please get out of my grainery... I need to be able to close the door, or open it... it must be my families choice... not some arrogant sales clerk at stupidstore that doesn't know what my farms needs are or the value of the grain in our bin!"

                    Very interesting... what did I miss here?

                    a)Stupidstore making me pay $.40 for bags when I buy $250 of groceries?

                    b)Line ups to the yingyang on 3 tills with 25 with no workers?

                    c)Store clerks who don't have a clue how to resolve a problem about charging twice as much as the tag said on the bin where I got the product... which I just happened to catch out of the corner of my eye while trying to get out of the way? (p.s. some stores give it to you free if they make a mistake!)

                    ALL of which generally makes me happy to go back to my local C00P... and have a pleasant shopping experience!

                    Interesting how many people besides me call it Stupidstore... I find it interesting that it offended you!

                    Please, get your hand out of my families grainery... A wind some day might come up & slam the grain bin door on it!

                    Sorry... I shouldn't go to farm meetings any more? Interesting...

                    I need to get grease under my fingernails more often?
                    Very interesting!

                    Manage my public life,
                    My farm life,
                    My my... what's next!

                    God Bless Canada... and even you Mr. Hin!

                    Comment

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