I don't like getting personal, but sometimes it's the only way...
Adrian Measner spoke at the Starbuck Producer Seminar on Friday, March 2 in Starbuck Manitoba. Among other things, he told the crowd that grain companies charge up to 40% more than their “actual handling costs” on canola. Further, if the CWB were to lose its single desk, then these companies would charge that much on CWB grains. Going this way would cost farmers about $115 million annually, according to Measner.
A related item: In a letter to the special task force (signed by Measner), the CWB accused the grain companies of the same thing. (No surprise here.) It explained how they compared the grain companies’ tariffs (their “handling costs”) to the street price basis and since the basis is larger than the tariffs (costs), the companies must be charging more.
<b>I can’t believe what I heard that day in Starbuck nor what I read in that letter to the Task Force (available on the CWB website).</b>
CWB supporters take note:
1……<b>Tariffs on canola are meaningless.</b> Companies are required to post them but they’re not used to price grain. Companies “merchandise” canola – they buy and sell at prices they expect to be competitive and be able to make money. They don't handle canola on a toll basis like they do with CWB grains so they don’t charge the tariffs. Again, the tariffs are meaningless.
2……<b>Tariffs are not the company’s “actual handling costs”.</b> Grain handling is a fixed cost business. The cost of operating an elevator is pretty much the same whether it handles 100 tonnes or 100,000 tonnes. The cost of handling grain is not fixed on a per-tonne basis. For anyone to suggest that the tariffs reflect “actual handling costs” like Measner did in Starbuck and in his letter to the Task Force, shows either (1) the extent to which some people will go to sway (deceive) a crowd, or (2) a severe and unfortunate lack of understanding of how the grain industry works.
3……<b>Actual canola handling costs (borne by farmers) are much less than the total being charged for CWB handling.<b/> Not the other way around as suggested by the misinformed ex-CEO of the CWB.
Adrian Measner is a bright guy. He was a dedicated and highly respected employee of the CWB and worked diligently for the cause. But when it comes to what he presented on the canola market, we have to assume one of two things. Either he's deceptive and disingenuous (he's a liar), conspiring to convince you of how great the CWB is for you, or he doesn’t understand even the basics of how the grain handling system works or how grain markets work. I'd rather believe he's misinformed than an outright liar, so I'm going with the latter. (When challenged and corrected by the other speaker he didn't defend himself at all).
Measner's criticisms and concerns of the evils of the open market is reflective of a view he holds without understanding it – even at a basic and fundamental level. It’s like my 6-year old who is afraid of “something” in his closet – it’s evil and it’s going to get him, but he has no idea what it is nor can he describe it.
I’m very concerned. Although Measner is no longer at the CWB, I'm sure there are many other just like him that are still there – including about 8 directors – who have an equally shameful lack of understanding of the industry in which they work or are willing to lie and deceive in order to keep the status quo. I’m concerned that the people operating this institution and fighting for its survival are doing so without a hot clue of what they are fighting against. Or they will stoop to unsavory tactics to get their way.
Take your pick. Neither one is pretty.
Adrian Measner spoke at the Starbuck Producer Seminar on Friday, March 2 in Starbuck Manitoba. Among other things, he told the crowd that grain companies charge up to 40% more than their “actual handling costs” on canola. Further, if the CWB were to lose its single desk, then these companies would charge that much on CWB grains. Going this way would cost farmers about $115 million annually, according to Measner.
A related item: In a letter to the special task force (signed by Measner), the CWB accused the grain companies of the same thing. (No surprise here.) It explained how they compared the grain companies’ tariffs (their “handling costs”) to the street price basis and since the basis is larger than the tariffs (costs), the companies must be charging more.
<b>I can’t believe what I heard that day in Starbuck nor what I read in that letter to the Task Force (available on the CWB website).</b>
CWB supporters take note:
1……<b>Tariffs on canola are meaningless.</b> Companies are required to post them but they’re not used to price grain. Companies “merchandise” canola – they buy and sell at prices they expect to be competitive and be able to make money. They don't handle canola on a toll basis like they do with CWB grains so they don’t charge the tariffs. Again, the tariffs are meaningless.
2……<b>Tariffs are not the company’s “actual handling costs”.</b> Grain handling is a fixed cost business. The cost of operating an elevator is pretty much the same whether it handles 100 tonnes or 100,000 tonnes. The cost of handling grain is not fixed on a per-tonne basis. For anyone to suggest that the tariffs reflect “actual handling costs” like Measner did in Starbuck and in his letter to the Task Force, shows either (1) the extent to which some people will go to sway (deceive) a crowd, or (2) a severe and unfortunate lack of understanding of how the grain industry works.
3……<b>Actual canola handling costs (borne by farmers) are much less than the total being charged for CWB handling.<b/> Not the other way around as suggested by the misinformed ex-CEO of the CWB.
Adrian Measner is a bright guy. He was a dedicated and highly respected employee of the CWB and worked diligently for the cause. But when it comes to what he presented on the canola market, we have to assume one of two things. Either he's deceptive and disingenuous (he's a liar), conspiring to convince you of how great the CWB is for you, or he doesn’t understand even the basics of how the grain handling system works or how grain markets work. I'd rather believe he's misinformed than an outright liar, so I'm going with the latter. (When challenged and corrected by the other speaker he didn't defend himself at all).
Measner's criticisms and concerns of the evils of the open market is reflective of a view he holds without understanding it – even at a basic and fundamental level. It’s like my 6-year old who is afraid of “something” in his closet – it’s evil and it’s going to get him, but he has no idea what it is nor can he describe it.
I’m very concerned. Although Measner is no longer at the CWB, I'm sure there are many other just like him that are still there – including about 8 directors – who have an equally shameful lack of understanding of the industry in which they work or are willing to lie and deceive in order to keep the status quo. I’m concerned that the people operating this institution and fighting for its survival are doing so without a hot clue of what they are fighting against. Or they will stoop to unsavory tactics to get their way.
Take your pick. Neither one is pretty.
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