Lentil Prices

[charliep]

A major problem with lentils (and the other green pulses) is lack of a forward pricing tools (futures or cash) and from there active price reporting. There is no way for farmers or processors to handle price risk/hedging activities. I would add this onto your list.

The only other comment is a lentil marketing agency would likely have as much benefit for the processing industry as for the farmer. The assistance would be in the form of inventory financing, price risk management and buyer insolvency/other issues with dealing in a market of relatively small/diverse import buyers. An industry agency which helped them deal with their issues in this area should result in lower processor margin needs to cover risk.

I have some of the highest respect for people in the pulse industry who have taken this industry from effectively nothing and grown it into something that provides western Canadian farmers a good alternative to other crops.

[parsley]

Well charliep,

Many of these "professionals/experts":

1. Exited the single-desk environment.
2. Are designing an industry with government money, but are expecting it to feed itself on farmer-money.
3. Are not necessarily herding farmers into a voluntary system
4. Are using a failed system as a template to create the pulse system. And I say failed in the context that it fails farmers, not industry.

I note you carefully say, that a "lentil marketing agency would likely have as much benefit for the processing industry as for the farmer".

I'd step that up a notch to say:

A lentil marketing agency would better benefit the processing industry than the farmer, as it is presently headed, because of the lack of volunatry participation by the farmer in some juridictions, and obviously directors and staff will be more than happy to download costs on the farmer with the free reign they have been handed.

That should rile you up this morning, charliep.

As you well know,I loathe downloading so many costs on farmers.

Parlsey

[charliep]

Not likely to get me too excited this morning - too many other things on my plate.

Both Tom4cwb and mustardman have raised issues in the green lentil market. Looking at alternatives that would satisfy some of the concerns in the industry.

You are highlighting that many farmers/businesses do quite all right marketing their own products outside the traditional marketing system or have developed their own supply chains/customer base. The voluntary lentil board could be just an additional cost without providing value. Agree that they should not be burdened with the extra costs.

Having said that, there is still need for at least some industry based coordinated effort to establish and maintain a commodity based marketing system. The question and discussion is how it can be done (if needed at all).