Contracting and Grading of Malt

[charliep]

wd9

I agree with your comments and also note nashty comments. Curiously enough, the cash clearing house proposed by western barley growers may have malt barley as it first trial. The basis of the cash clearing is to have clearly defined delivery rules for both the buyer and the seller including ways of sorting out grade/quality disputes.

The only other comment is that any farmer who stores malt barley on farm should be paid good premiums for the risk and the better storage facilities to maintain malt quality/manage moisture content.

[kamichel]

I see a problem here with the storage payment and pricing malt daily. IF the price goes up per say and the farmer is just allowed to get out of a contract by submitting a poor sample so as to get it resellected under a higher price then that is likely what most farmers will do. Not to put us farmers down, but that is what will happen. So likely I think possibly what will work only is contracts to deliver at a certain date at agreed upon prices. This will likely mean much more premium for defered months. And also put risk to the farmer for keeping his malt in condition. Say if his malt goes out of condition he should be charged the difference in price at the time of the buyout. Some farmers who want to speculate may hold their good malt for a better price or a poorer price. Same as canola would work if there was a contract on canola and it goes heated. I am game for that if it gives the users of the malt a better situation for business. Which in turn will mean more malt plants more malt exported more demand for malt barley.
Well this is business, possibly insurance could be bought to counter the possible buyout from spoiled malt barley.

[kamichel]

Furrow ticker, your comment shows how the CWB has failed the maltsters. They are forced to purchase low qualitly barley. They are not tickled pink by buying it like you have stated.