Dear Herc;
Beef has two major players. Net margins as high as 82% have been logged in this industry.
Grain industry margins are the result of competition.
For instance, let's consider the current export pea bid. Most bids are between 9 and 10$ dollars for export, while domestic fractionation peas are bid at a dollar higher. This example illustrates the price gaps that exist in the industry.
Ukraine sold peas at 240 USD/mt delivered; you do not need to understand the full gamut of costs in this number to know it will not work for Canadians.
For the industry to be diverse it is necessary to support a diverse marketplace.
Without diversity not only do we have widening margins, but we have reduced cropping choices.
It's no secret to the value-add sector that the USA is after investment in agribusiness companies can easily move! The carbon tax alone adds a burden of non-competitiveness in processing and distribution.
The farmer protection system of license and bonding is not bankable and never was.
Why do we need to have all this damage before we change an antiquated and ineffective system?
Beef has two major players. Net margins as high as 82% have been logged in this industry.
Grain industry margins are the result of competition.
For instance, let's consider the current export pea bid. Most bids are between 9 and 10$ dollars for export, while domestic fractionation peas are bid at a dollar higher. This example illustrates the price gaps that exist in the industry.
Ukraine sold peas at 240 USD/mt delivered; you do not need to understand the full gamut of costs in this number to know it will not work for Canadians.
For the industry to be diverse it is necessary to support a diverse marketplace.
Without diversity not only do we have widening margins, but we have reduced cropping choices.
It's no secret to the value-add sector that the USA is after investment in agribusiness companies can easily move! The carbon tax alone adds a burden of non-competitiveness in processing and distribution.
The farmer protection system of license and bonding is not bankable and never was.
Why do we need to have all this damage before we change an antiquated and ineffective system?
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