John Depapp on Webber right now

[just_wondering]

650
980.com

[parsley]

DePape was spectacular.

What a knowlegable, precise man.

He spoke directly to farmers because a lot of votes haven't been sent in yet.

A few BARLEY notes about price signalling as I recall:

1. CWB is 8% of world trade of barley.

2. 80% of the barley market is non-Board/domestic

3.Exports 8% or < malt out of Canada.

4. Malt for Middle East is perhaps way out of position.

5. CWB doesn't have market power in malt.

6. Malsters want to deal directly with farmers price signals appear.

7. In droughty '02-'03, the malt barely was there, but it was going into feed market because the price structuring was dysfunctional. As a result, malsters went to Denmark to buy malt to import into Canada. With farmers with bins full. Same thing is happening this year . Deja vous, boys!

[parsley]

DePape also touched on the impact the present barley marketing system has on other grains. As I recall:

Farmers need cash in the fall. Hungry for cash.

Because the CWB restricts the wht/bly entering the system, farmers turn to canola to service their payments and fuel bills.

Consequently, a whop of canola enters the market, one million extra tonnes, that industry does not want to store, so the basis gets knocked down $20.

The canola basis wouldn't be so weak in the fall if Board grains didn't impact upon the rush to sell canola.

Parsley

[parsley]

DePape also delved into the issue of transparency. He is very technically descriptive, and precise, and I had immediate confidence in that his information is sound.

He started out by looking at small sales.

When the Board sells grain, that transaction, that 'consumptive business' as he names it, does not hit the market. Nobody knows.

When fresh buying hits the market, the market is supposed to react and rally, but in the CWB's case, the barley is bought and nothing happens, the market is not impacted at all. As he puts it, "The consumptive interest is muted"

He moved on to large sales. A large buyer of Canadian wheat never has an effect on the market. sh sh . Who even knows? The CWB does nothing in that market to represent that sale. The transparency is not there.

Parsley

[parsley]

DePape touched on premiums.

The CWB sells into large chunks. They price discrimiate. Canadian brewers pay large premiums, but the Board sells for a lower price when they are selling into China.

A two-price system, so to speak.

The Board's figures are a $59Million premium.

So he posed the question that why wouldn't the possibility be considered to mothball the brewhouses in Canada and move the operations to China?

He also referred to Richard Pedde's study. Hope I spelled the name correctly, Richard. Anyhow,Comparing farm prices with Montana malt.

CWB barley costs $60/tonne, and canola costs $40/tonne. We're $20 short

Parsley

[just_wondering]

I wish that Depapp and one of the CWB's marketing heads could go one on one civil debate. Don't have a CWB director they don't have the back ground and end up looking stupid put one of their best guys against a Depapp

It's hard to fathom how single desk supporters can support the current version of the CWB when Info. like this is out there.
What I took away from the interview was his version of how the CWB could operate in a market choice environment using his example of Japan feed barley sales. He talked of a marking chain coordinator
They will need more over the years especially since U.S. corn will become much more dear.
For full interview www.newstalk650.com
have to sign in as an insider.
Larry look into the tete a tete just make sure the CWB send someone competent

[parsley]

John dealt head-on with the issue of the campaign out there which states that the dual market #2 is not an option.

He did it without rancor and without distaste, and instead chose to provide some positive steps the Board should be taking.
He again reminded farmers that we have no market power in barley with less than 18%.


If we are moving towards market choice, their must be a cultural shift within the CWB itelf.


The CWB can transition itself to become what DePapae calls a "value-chain deal-maker". One who who court premium markets and become the farmers' agent in Canada. The Board should go out into the farm community and ask, "Are you with me?" Select feed barley. For that premium market, and go to the companies inviting them as the service provider, but making them compete. Making it relevant in the market. IP feed barley to Japan, for example. A pooled price and lock in the basis.

It can happen. DePape advocated no halfway measures. "Go for an open market", as my notes say.

Logic, common sense, and non-antagonistic

Parsley

[parsley]

John DePape also commented on the barley plebiscite, which of course is ripping apart farmers living down the road from each other.

He listens to farmers. He says farmers get marginal CWB benefits. High CWB costs for farmers.He also talked about some of the studies done for farmers as being flawed.

John referred to the surveys done by the CWB over the past few years that have repeatedly revealed 46% of Designated Area farmers favor marketing choice. A dual market he called it.

He made the point that if the CWB was continually getting that result over a number of years, and if the CWB is truly working in the interest of farmers, they should have acted upon the survey results, or they are doing a disservice to farmers.

He called that inaction reprehensible.

Somebody is sticking up for 46% of the farmers!! Not for cheques for the employees. Not for the Minister. Not for the B odf D's per diem's But for the farmers!! I want to send him an email.

Thank you John DePape.

Parsley

[parsley]

just_wondering,

Neat idea. One CWB guru and DePape.

How about tomorow on a special edition? Think 980 radio station would go for it?

Only Larry Weber can talk all of them into it! The station included. I really find his show cutting edgey stuff.

just_wondering, can you e-mail Weber and see if something can be set up?

Parsley

[cropduster]

Parsley,with Depape wouldn`t it kinda be like taking a gun to a knife fight??I`m still waiting for the smart guys at the CWB to trot out their supremacy of the past oat market.Heck they don`t handle oats anymore so what`s the commercial secrecy here??