Useless Alberta Barley Commission

[charliep]

Cranky for other reasons but need to comment.

Alberta Barley Commission is the only provincial organizaition that represents barley producers and invests money in various aspects of barley research/market development. Western Grain Research Foundation collects in other provinces but only on CWB deliveries/supports mainly breeding research (as does the Breeding and Malting Research Institute). Whether the money is well spent is dealt with at their annual/district meetings. If you disagree with the ABC, you can ask for your money back.

An amazing fact - on August 1, 2007, cows and pigs will still eat barley. People will still drink beer. World will not come to an end.

[TOM4CWB]

Charlie,

What an interesting story is told here:

"Some companies ... may have to pay higher prices to obtain barley from grain companies or directly from farmers, as barley prices have increased recently," the government's regulatory impact analysis statement said."

Corn and malt barley prices peaked in the late fall 2006... one would have thought since the CWB knew the barley plebiscite, Directors Elections... and Clear instructions in the Summer and Fall of 2006 that choice was the order of the day...

And the CWB put barley sales on... at rock bottom prices... without an specific exemption or mention that they would by nul and void if the "single desk" wasn't in force any longer?

Who exactly do the CWB sales dept. work for... extracting low price contracts from growers... at prices they knew would not be competitive?

What makes the CWB so sure they would have gotten the barley... even if the CWB Regulations had not been changed?

What are these sales levels; exactly how low are they?

How could the CWB responsibly sell barley that has not even been planted yet?

ANd Burbert and CO... are complaining about ABC being bad stewarts of our funds and property?

[chaffmeister]

So the CWB has made sales to Prairie Malt - I hear as much as $100 per tonne below market. In the event that the single desk were to remain until Aug 08, what would the CWB do to ensure that Prairie Malt gets its cheap barley? The answer is nothing.

The CWB sets prices to the maltsters. It has absolutely nothing to do with the origination of the barley. That's why the maltsters are in the predicament they're in right now.

Feed barley price in Calgary is 160.80 to 175.00 (according to the AGC); Red Deer about the same.

CWB 2row designated barley - initial in Calgary at 139.00, PRO at $152.00 (my own calculations) FWIW - European 2 Row is trading at about 197 Euros = about $300 CAD FOB Mosel.

How do the maltsers attract the barley they bought from the CWB using these prices? The answer is they don't.

Whether the single desk is in place or not, the maltsters are not going to get any help from the CWB in attracting barley from farmers. Even with the single desk in place, Prairie Malt (Cargill) is snookered. The only way they will get malt barley delivered to them with these spreads is to either pay up (to farmers directly) or get the CWB to (raise the PRO). Either way, because of the ridiculous way the CWB markets malt barley without any risk management, there's going to be a sea of red ink. Cargill just wants it to be the CWB's.

At least in an open market, the CWB would be forced to compete to attract the barley.

[Fransisco]

You nailed it chaff.

[charliep]

Chaffmeister

Would encourage you to repost under one of the Roberta Rampton article discussions. Worthy of discussion.

[Burbert]

It appears that CONFUSION is the order of the day. Barley prices are going up,down,around, sideways,in,out,rising, lowering, guess it is the magic of the open market. Wow is all that I can say, from this CONFUSION will arise a system that puts more money in farmers pockets, while finally making malteys pay, or go broke, or seek a subsidy, to produce 333 or is it 444 bottles of beer from a bushel of malt barley. Tough business malteys are in, guess maybe they have to restructure, fire somebody, get lean and mean, now the farmers are in control. I suspect finer print on maltey contracts in future, Soprano type tactics,big tough gumbass forcing signatures on contracts and ENFORCERS to wack those not delivering. Weak kneed farmers growing nothing but malt barley, to please the Capos lurking in the shadows. Help us, help us, almighty AB Barley Commission, I'll gladly pay checkoff, just keep these bad men away from me/us!
FINALLY a reason to support government intervention, grain fettie, grain fettie, got to get some grain fettie, lock the doors on all bins cause Osm Bin Ladin is lurking everywhere, everywhere, W he's here, he's here in Kanaada, trying to disrupt the malt market, obvious need for a preemptive strike...... Memo to Steven, talk to Chuck, he doesn't seem to know what he is doing. No, no, check with pars, tom4, charlp,chaf, don't forget Fansisoo, they know what to do, or do they?????????????????

[chaffmeister]

Burbert – I am so sorry for you that you are so confused. I suggest it would help if you took whatever the CWB says in this environment with a huge dose of skepticism, rather than the usual blind faith.

The CWB said this:
<i>World malting barley prices have been pushed to this year's high levels primarily by production problems in two of the three major global malting barley exporters, namely Australia and the European Union. New crop supplies will not be available from these regions for some time, which is expected to support global prices until early summer.</i>

I concur whole-heartedly with the CWB here. This is a true representation of the global market. If I were to change anything, I’d say the prices will be supported beyond early summer – but it all depends on weather.

In the same breath the CWB said:
<i> Many customers are now in a wait-and-see-mode, holding off on purchases in the hopes that malting barley values will decline as new crop supplies become available. Customers are also reluctant to make purchases as they are anticipating their ability to access supplies from multiple sellers at values lower than a single-desk seller.</i>

This is a crock. Maltsters are having a very difficult time originating malt barley as it is. If they are not buying more from the CWB, it’s because they have zero faith in the CWB system in terms of getting barley delivered. (Why add to the pain?) They are not anticipating lower values (with a multiple seller environment). They know what the CWB knows – the global market is in a tough spot right now and if anything, the play would be to cover (buy) as much as possible. They also know that European maltsters and brewers are doing just that – to the extent that they can.

The CWB also says:
<i>In addition, higher spot prices in August are expected to erode farmer deliveries previously expected in the 2006-07 pool.</i>
Talk about sucking and blowing at the same time. Customers are waiting for lower prices in a multiple seller environment (after Aug 1) yet higher spot prices are expected. Huh?

And if we’re talking about high new crop prices, what effect did the 07-08 PRO have on old crop deliveries – being about $30 over the 06-07 PRO? Seems to me showing a huge premium for nucrop makes the CWB completely culpable here.


The reason that the market is in “apparent” disarray is because the CWB is being stupid and vindictive, having exposed itself to the vagaries of the market by shorting the market in a big way. It is doing everything it can to extract the maximum pain on any players in the malt barley market. It has threatened to walk away from new crop sales because they are too low priced to be able cover in a choice market. (Contributing to Cargill’s position of delay the switch over to a choice marketplace.)

Even in a single desk environment, these sales were made too low with no backstop. Don’t forget – the CWB operates in a dual barley market already – so single desk or not, the CWB is snookered already for next year. Someone at Cargill needs to realize that even with the single desk in place, they will have a tough time getting barley from farmers this upcoming year. You know, just like this year.

[nakodo]

It is interesting to see the many comments in this thread from non-Alberta producers, retired (but maybe still making their kids miserable by livng on the farm) farmers, the confusion between the actions of the ABC and WBGA, the complete distortion of the uses of the ABC barley check off $ for research versus lobby (check out the annual reports on www.albertabarley.com for the facts not some coffee shop gossip).

Less theatrics more facts please

[nakodo]

Burbettt, take a valium.....a rant is a rant and usually has a point but youra does not

I quote your previous message

"It appears that CONFUSION is the order of the day. Barley prices are going up,down,around, sideways,in,out,rising, lowering, guess it is the magic of the open market".

So you would prefer everyone got the same price, that everyone was average, that good marketers got the same price as "ohhh the prices are changing I don't know what to do" marketers?

"Wow is all that I can say, from this CONFUSION will arise a system that puts more money in farmers pockets, while finally making malteys pay, or go broke, or seek a subsidy, to produce 333 or is it 444 bottles of beer from a bushel of malt barley. Tough business malteys are in, guess maybe they have to restructure, fire somebody, get lean and mean, now the farmers are in control."

Hmmm so you agree farmers in control is good for farmers.......AND prices.

"I suspect finer print on maltey contracts in future, Soprano type tactics,big tough gumbass forcing signatures on contracts and ENFORCERS to wack those not delivering. Weak kneed farmers growing nothing but malt barley, to please the Capos lurking in the shadows. Help us, help us, almighty AB Barley Commission, I'll gladly pay checkoff, just keep these bad men away from me/us!"

So you think the mafia controls the monopoly, hmmm one buyer, one seller, new entrants not allowed, no price negotiation, take it or leave it, maybe you are right, maybe you DO need someone to help you out.

"FINALLY a reason to support government intervention, grain fettie, grain fettie, got to get some grain fettie, lock the doors on all bins cause Osm Bin Ladin is lurking everywhere, everywhere, W he's here, he's here in Kanaada, trying to disrupt the malt market, obvious need for a preemptive strike...... Memo to Steven, talk to Chuck, he doesn't seem to know what he is doing. No, no, check with pars, tom4, charlp,chaf, don't forget Fansisoo, they know what to do, or do
they?????????????????"

Here you just lost me, not sure what you are trying to say, you might want to clarify what Osama has to do with malt, as his religion does not allow one to drink alcohol, do a little research, less bombast and less insults please.

[nsffarms]

Burbett
Too bad you know so little about the ABC and the work they do, 90% of which is non-policy. I wish agriculture was as simple as you seem to think it is, but the amount of work that has to go on behind the scenes to get anything done by armtwisting the province, feds, and all the bureaucrats is mind boggling, and ABC is one of the groups representing farmers that hauls that freight.

Let's be straight here - what bugs you is that ABC isn't a single desk supporter - they believe farmers should control their own destiny, not a government entity in farmers clothing like the CWB! If you want to direct your rant at anyone, with regards to wasted money and time, direct it at monopolies that refuse to yield power and like 2 year olds want to take their ball and go home when they don't get their way in a vote by producers. Direct it at bureaucracies that insist on testing chemicals and animals in Canada in tandem with accepted tests from the US and EU, which just wastes our money and hires more union bureacrats. Direct it at a whole host of bureacracies in this over-governed country that exist for their own existence sake. Don't direct it at a group like ABC that is trying to cut the government waste, fund research for better varieties, markets and uses for cereals and give farmers a better chance to compete.

I wish agriculture was as simple as you suggest it to be, and that is the basis of the biggest lie that the CWB has told farmers over the years, that all we had to do as farmers was just produce, and they would take care of the rest because we were too stupid to market for ourselves. Funny how we can sell everything else without their help except wheat and barley.

Do I trust grain companies to act in my best interests? Not likely. That's why competition is vital and more market opportunities as well. Sorry the market goes up, down, sideways, etc. You may not like an unfettered market, but there is one thing it does that nothing else can- it self corrects, and it spanks you when you make stupid decisions like Prairie Malt. I'll take that any day over the regulated, unresponsive, inaccurate market signal mess the CWB spawned.

[parsley]

nsffarms

You deserve a bottle of ice wine for that commentary.

Parsley

[wd9]

The question still outstanding which Charlie and others have asked is what is the vision of barley in the eyes of the ABC? Given the time elapsed and lack of vision posted, I fear there is none!

[nakodo]

Here is an excerpt from the ABC Business plan

Vision Statement

A vibrant and innovative industry that unlocks the entire potential of barley.

• A complete system for all crops, (but especially barley and cereals) in this province that has farmers growing crops for specific end use products that customers and industry want and need. For instance with barley:
o soluble fiber for healthy beverages,
o tocols for cosmetics,
o low phytate feed barleys for environmental improvements and
o unique varieties for beer in Japan, just to name a few

• This will require an overall strategy to look at those final needs first, and design a system that supplies the final crop product to meet them, while ensuring everyone involved has the opportunity to succeed.
o We cannot have one sector continually succeeding at the expense of another or there will be no long-term sustainability of the system.

• To get there we first need to identify those needs using all available sources - AAFRD, producer organizations like the ABC, researchers and especially industry.
o Before something gets bred for development, and grown by farmers, it should have an end use that pays enough to make it worth growing in the first place.
o We can no longer afford to use a shotgun approach for growing and using crops.

• We need to find out what is involved in the development and selection of those varieties to suit those market requests, be it for turkey rations, barley for Shochu in Japan, or ingredients in functional foods.
o It takes a number of years to get a new variety or crop tailored for use, and we will have to be looking to the future needs for these crops to have them ready in time.

• We need to have a good understanding of the agronomics for those new crops and their end uses,
o should they be raised in cold climate, under wet harsh conditions to concentrate the active ingredients, or under irrigation in the Palliser triangle to produce the most starch per acre possible for alcohol production?

• Next we’ll need systems that allow us to identify, track and trace these new IP crops and deliver them to the end user in the format they require.

• We need marketing systems that not only allow for value adding and diversification into these new markets, but systems that actually encourage such risk taking.
o Moreover, these systems would allow farmers to be partners in the value chain, and be paid a premium for growing what end users want.

• We’ll need risk management & insurance programs that encourage diversification and reward risk takers while allowing them to manage financial risks.
o This means options to hedge, contract, and cash price, as well as agronomic tools to minimize crop and weather risks that can be tailored to individual situations and operations.

• Finally, to make the system work, we see a province that welcomes and encourages value-added processing and manufacturing ventures to locate here in Alberta.
o One that creates a climate for investment that has reduced barriers to entry and facilitates smooth operations of those ventures.
o One that encourages local processors to locate throughout Alberta to utilize these crops in the province and provide jobs for Albertans.
o And one that encourages the same kind of venture capital investment for crop use industries that made the oil industry and ultimately Alberta so successful.

[wd9]

CTRL C and CTRL V, gotta love them.

Does a Canadian barley industry plan that ABC is a part of exist?

[nakodo]

Yes there is a Cdn Barley Plan and actually the ABC is a lead on the discussion on the amalgamation of the Barley Development Council, the Barley Cereals Round Table, a lead on the Innovative Feed Grains Alliance in Ab, and created, jointly with the Ab Canola Producers Comm, Grain Growers of Canada to lobby Ottawa on issues affecting grains. ABC will get a research leverage this year of over $ $5 million against a producer investment of $ 250,000 and has organized over 30 companies and associations to lobby Health Canada for a Barley claim and another 15 orgs to lobby Ottawa about Plant Novel Trait restrictions on new variety development.

Then the Q arises what have you done lately to help??? Ask for a refund? Join a committee?? Ctrl C?