THE CWB AND ORGANIC GRAIN

[TOM4CWB]

I AM FRUSTRATED THAT WESTERN CANADA DID THE DUE DILLIGENCE REQUIRED TO DETERMINE REASONABLE SOLUTIONS TO PRACTICAL PROBLEMS, BUT THE CWB CONTINUES LIKE WE NEVER DID THIS GUT WRENCHING WORK.

WHY?


The Western Grain Marketing Panel clearly stated that Organic grain should be removed from the jurisdiction of the CWB, but that this should not preclude those who wanted continued CWB involvement.

Why is the CWB not issuing no-cost export licenses, when industry consensus has already been reached on what should be done with Organic Grain?

I Quote the Panel;

“The Panel heard from six organic farmers and organic associations….The majority view was that this product identification is incompatible with CWB marketing of bulk grains and that organic grains should be removed from the mandate of the CWB…”(Page 29)

“In arriving at conclusions regarding the system for marketing wheat the Panel was influenced by the desire to retain and improve those elements of the system which are functioning reasonably well, and at the same time, introduce adjustments which recognize the need to meet changing conditions. The Panel also recognized that variations in the system are necessary to deal with specific classes of wheat….

4)Organic Wheat

Organic wheats should be exempted from the jurisdiction of the CWB and marketed through a controlled IP system…” (Page 91)

Does the CWB not think that every time they ignore the facts, and avoid the truth, that they are just stepping closer to annihilation and total self-destruction?

[wedino]

Tom, Ken Ridder, at the supper meeting in Weyburn, stated "Regular grain is switched for & sold as organic grain in the USA & thereby competes with grain the CWB is marketing into USA"

Ridiculous, yes, but direct from the horses mouth!

Later............Cam

[TOM4CWB]

Cam,

Ken Ritter said exactly the same thing in Forestberg.

The CWB cannot claim this as many people will eat another organic bread product long before they would eat "wonder bread".

The CWB is trying to convince themselves that they are right, no matter how much they are in denial.

Ken Ritter said at the same meeting that it only costs 4 cents per bushel for the CWB to market grain when a few days later the Western Producer published numbers well over $7.00/t

When will the CWB face the facts?

[wedino]

What issue was that in? (Western Producer)

$7.00/MT - I agree it's all of that plus try a buy back. The last buyback I did WIT charged me $5.00/MT to do the paper work. Why won't the CWB let me do the required paper work? They tell me that I may not pay them. It's simple, if I don't pay then keep me out of the pool.

Later.......Cam

[TOM4CWB]

Ontario only charges $1.30/t to farmers for their costs, why is the CWB 5 times more, when they handle, I mean monopolize 15 times more grain!

You should know by now the monopoly is for the grain companies.

Outside the "designated area" no-one else pays anything, except that we pay for their licenses from the pooling accounts!

Is this fair?

[parsley]

This is what a frustrated first time organic producer sent to us after he had worked towards a potential sale in Northern Europe. Then he got a taste of the CWB buyback . Look at it.

1)Current selling CWB price into Northern Europe for #2 HRS Wheat @ 14.0% protein
$234.55/MT

2) Initial price for #2 HRP Wheat Basis Vancouver or St Lawrence

$166.75/MT

3) Cost of Buyback
$234.55
-$166.75
$67.80/MT

plus an additional $5.00/MT Admin Fee

4) PRO Estimate as of Feb.22, 2001 on #2 HRS wheat @ 14.0% protein

$211.00-$212.00/MT

5) Cost of doing buyback Based on 108.861 MT

108.861 MT @ 67.80= $7380.77
plus administraion fee

108.861 MT @ $5.00= $544.31

TOTAL COST $7925.08
plus interest charges.

He must submit $7925.80 to the CWB prior to the sale being made.


Or....he can wait for the new buyback system being implemented (against the will of 595 organic wheat and barley's growers.) Then the export permit will be granted by the CWB with an ADDITIONAL 5-6% interest! The new system is not available until Mar-April/01

Additionally he must wait until next year for the final payment

6) Advantage-Disadvantage of Doing BUYback
$212.00-$234.55= -$22.55/MT
$211.00-$234.55= -$23.55/MT
So by doing the buyback, this organic farmer stands to fall short
$2452.00 (108.861 MT @ $22.55) to
$2560.00 (108.861 @ $23.55)
PLUS administration fees and interest charges!


Based on 100 acres of production, this shortfall represents a loss of $24.52 to $25.60 /acre plus administration fees and interest charges.

There is something dreadfully wrong here. There is something dreadfully wrong with elected farmers that would approve of this continuing.

Parsley

[wedino]

Parsley, I don't understand, why are they using the #2 HRS Wheat @ 14.0% protein pool? Are you going to tell me the CWB doesn't have a pool for organic wheat?

I wonder why the CWB doesn't do the same as it does with the accredited exporters? It's my understanding they ask the accredited exporters what they are getting before they(CWB) set the price to them(accredited exporters).

Why doesn't the CWB treat organic wheat like it does seed wheat?

Later........Cam

[charliep]

Hi Cam,

I'll try to answer your questions from the neutral ground - hard to do in this debate but here goes.

The 2 CWRS 14 % protein is likely the grade that was sold. There is no separate pool for organic grains but rather the CWB offers the same buy backs as for the regular wheat pricing pool. I can feel the corrections coming all ready but my understanding is the premiums for organic grain are left in the farm managers hand with the losses Parsley describes above reflecting the cash market in general versus the buyback.

On your thoughts about the how the CWB handles accredited exporters, the CWB does a lot of market intelligence ahead of making the sale to the accredited exporter both in terms of the customer (every accredited exporter has to say who they are selling to - the CWB doesn't do optional origin selling where the buyer isn't indicated) and the price that will be achieved. The CWB pushes the accredited exporter as hard as they can to get the best price based on the market information they have such that there is only margin left for whatever services the A.E. provides (ocean freight, etc.). In theory anyway, all export sales prices should reflect as much value as possible to the overall pool.

I will leave for others to comment.

[TOM4CWB]

Cam,

On the seed wheat question.

The CWB claims that this seed is not being used for human consumption purposes, therefore the CWB does not have a right to interfere.

THe problem is the CWB has absolutely no statute backing for this position.

The CWB Act says absolutely nothing about wheat for seeding or planting purposes, and the CWB is making this up out of thin air, just like the exemption for manufactured feed!!!

The CWB has taken it upon themselves, above and beyond the authority of parliament to do these things.

Just like forcing a farmer into the buy-back was never contemplated by parliament.

Why shouldn't the CWB be honest and submit all these issues to a court and have an independent decision, if the CWB is so confident they are right?

[parsley]

Cam, from what i understand, what really happens is this : Joe, the organic farmer goes out and markets his grain and gets a premium price in a premium market. The CWB does not market organic wheat or barley and the CWB does not have an organic pool. In fact, the CWB is totally unable to access this premium market and the CWB is totally unable to get this premium price. Joe sells into markets that conventional Canadian farmers cannot service at all. If Joe doesn't service them, another organic producer from another country will. (Or that organic consumer may begin to buy millet or flax bread).

Joe always requires a license to export. However, the CWB denies every producer in the Designated area an export license. So the organic farmer is forced to sell his grain to the only buyer in town.....the CWB.... if he wants the export license.

At that point in time, the CWB buys the grain the producers offers, pays the farmer the farmer the initial price,......and takes ownership, but not possession of the grain. The grain may be still in the bin. The CWB owner then sells that grain back to the organic farmer at the full price, who is technically now, no longer a producer, but a "grain dealer". Dealer Joe makes his arrangements to export because the CWB will now grant this grain dealer the license.


Organic Farmer Pierre, in Quebec, skips all these steps. Producer Pierre gets a no-cost export license from the CWB. The big feed mills get no-cost export licenses. The pedigreed seed grower gets no-cost export licenses.

Interesting.

Charliep, you say the organic premium is left in the producers' hands. Rather an interesting way of phrasing it because the organic producer not only founded the organic industry in spite of the CWB, but these same producers find their own customers as well. The CWB bleeds the premium , more as they become bolder and bolder, and sometimes so much that all the organic premium goes to the CWB, stopping organic sales. Take a look at what the CWB is planning:

1. The CWB is going to force organic producers to grade every shipment by the CGC... at the producer's cost ...even though neither seller nor buyer want or require or use the grade.

2. The CWB is hiring an organic specialist even thought the organic Producers do not want or require him/her.

3. The CWB openly promote their favorite three corporations that they want to market organics. Producers are not included on this "Frequent Promotion" list

4. The CWB is planning to tack on an additional administration fee for organic producers only. This fee does not apply to feed mills or to certified seed or pedigreed seed ....only organics. In fact, organic producers are the only ones hit twice with administration costs: administration costs in the pooling account, (including the admin costs for free licences for the privileged) and a special organic administration cost for being forced into the pooling account.

5. Organic farmers sell FOB farm, while the final payment reflects demmurage and freight deductions.

6. The organic producer will have an account set up for him if he needs to come up with money to do the buyback , but he will be charged going interest rates.

7. The CWB has access to the names and addresses and prices of all organic buyers. Many believe the CWB will supply this infomation to their favorite companies, who in turn will steal these markets from farmers by undercutting producers and then run farmers out of business. All this will be done in the name of protecting producers out there from the "vagrancies of the open market" as was once written by someone who cannot shed the paradym that the open market is a wandering course, (unsafe for peasants), with the 'lost soul farmer' needing a government-run system with an eye to complete uniformity. Uniformity? No.

Diversity? Yes. In actuality, we are becoming global. diverse, and more complex. Many produces view the open market as a base of opportunity filled with diversity......farmers that can pick and choose what is right for them. For their operations. For their farms.

The market intelligence the CWB has gathered about organics is what they have stolen from producers.

Parsley

[TOM4CWB]

Parsley,

That was an amazingly good explanation of what the situation is, from a practical standpoint.

If the CWB does not soon fix problems like organic grain, someone else soon will.

I believe we are at a watershed point in the CWB's history.

Either the CWB quits denying the problems that they are creating, by going beyond the authority of parliament, or one of the parliamentary authorities will fix them, as in the provinces.

Much is made about agriculture being a shared jurisdiction when aid payments are made to grain farmers.

What the CWB is doing also goes into provincial agricultural jurisdiction.

How far is the CWB willing to push this line?

When will one of the provinces in the "designated area" object, and opt out like Ontario did?

[parsley]

Cam, you asked why the CWB doesn't treat organic producers like they do seed wheat. They could if they chose. They could simply issue them export licenses at no cost. They did just that with the seed growers. They did just that with the millions of bushels of wheat and barley that they chose not to market and instead told the feed mills it was okay if their big companies did the marketing!

The CWB can issue a license or not. And the Directors at the CWB, under advice from the staff, chose to deny no-cost licenses to organic farmers.

Random denial, with no consistentcy, at some point in time, becomes discrimination.

Parsley

[wedino]

Parsley, You state >>Organic Farmer Pierre, in Quebec, skips all these steps. Producer Pierre gets a no-cost export license from the CWB. The big feed mills get no-cost export licenses. The pedigreed seed grower gets no-cost export licenses. <<

What's to stop Organic Joe from shipping his grain to Quebec (as I understand most organic grain is cleaned, bagged & shipped via container) & completing the sale from there? (Other than chains & leg irons) Of course it would have to be headed in that direction or freight charges would eat away at any profits.

just a thought..........Cam

[parsley]

In interprovincial trade, the CWB requires an interprovincial-export license from producers. So if they move #1 Barley for pearling to Ontario...they need a license from the Board....Guess what Cam....
do they grant
or
deny?
Can you guess? I'll ask if that is your final answer.
Parsley

[TOM4CWB]

Cam,

The CWB makes the Quebec farmer sign a statutory declaration stating and swearing that the grain was produced in Quebec.

Then the no-cost export license is granted.

Same goes for B.C. outside the "designated area".

If a people are dishonest, many things can be done, the sad part in the CWB system is that dishonesty is rewarded, and telling the truth costs big time. THis is what started my battle with the CWB!

Don't you think it is time things changed?