Barley Growers: Cargill and CWB are Welfare Bums

[TOM4CWB]

Change is going to happen and the sooner the better for all involved, short term pain for long term gain. As Charlie has mentioned several times the Market Signals in the Barley Sector, the report shows what is needed to create a better enviornment for all. The only ones that were contradictory to that report were the CWB. All other participants agreed in principle to the changes needed, one of these players is the malting industry.
For those who wish to revisit this report it is on Ag Canada's web site or I believe still on the WBGA site.
As for Cargill, I doubt that thier barley marketers in Winnipeg are not refusing sale calls from overseas customers. I'm sure all our grain companies (whom are agents of the CWB, and make 90 % of all barley sales) are actively looking at providing thier customers the malt barley they require. AU has stated such, personally haven't called any of the line companies to see what kind of deal I could get. I've decided to work with RAHR, fortunately Prairie is too far away to boycott, but that might be a consideration for some.
As stats Canada today released, 10.8 million acres of barley going in. We know at least 75% of that is malting. We know that only 1.8 - 2 million tonnes. Hmmm is there going to be a shortage of malt? is the lottery going to end? will the maltsters after losing there wet nurse going to have to pay a fair price for the malt? Perhaps, with new markets opening up, both domestically and export change is here.
It's the dream of the CWB that we wait a year, perhaps a new government will be in place and all the bricks in the CWB Wall of lost opportunities will be put back in place.
Erik

[TOM4CWB]

edit to my rant,
we know that only 1.8-2 million tonnes is selected for malt.
I know you all know that just got finger happy typing and forgot to get it right the first time!!
Erik

[chaffmeister]

erik
Figure on 3 mmt or more malt barley selected this year....

[chaffmeister]

Tom - take another look at the fertilizer story / analogy. Forget about the CWB for a minute - just think fertilizer and basic Commerce 101.
How would you respond? Remember - we're not talking about the CWB here.

[nakodo]

hmmm multinationals supporting the CWB and their pricing locked in below market.....

NFU explaining we need the CWB to protect us from the multinationals......

something is fishy in Denmark and it is opportunistic multinationals unwilling to face competition in their buying decisions ie actually having to bid for barley OVER!!!!! the feed price.

[parsley]

chaff,

Duscuss the principal of the defense of the single desk by Cargill.

It's indefensible.

Parsley

[Fransisco]

I think I'm going to have to side with chaff on the contract is a contract principle, even if it is a stupid contract.

I am no keener than the rest of you on Cargill supporting the single desk or trying to slow down dual marketing or extending the August 1st date, that's a non-starter. But if they have a legitimate agreement it either has to be honoured or some kind of compensation made.

[parsley]

Has the contract been broken?

I see no grain delivered to the Board because the Board will not put the price of barley hgh enough to attract barley all winter.

What if zero farmers last year sold their barley to the Board? What if every bushel was sent to the feedlot because the farmers all contracted with the feedlot? Who dies Cargill sue?

Who made the decision to contract the barley with Cargill? Was it the Government. or was it the CWB or was it the Directors or was it the farmer?


Parsley

[AdamSmith]

Chaff,

To your question, yes I'd be pissed, but I would have bought with the full knowledge that they had the product to deliver.

Cargill knew damn well that the cwb could not gaurantee even one bushel of 2007 Malt Barley. It would be tough even if they kept the single desk, without it, they there was no way in hell the cwb could honour a contract to deliver malt barley.

They can sue the CWB BOD's for all I care, but to suggest a years moritorium on the open market, No way.

[TOM4CWB]

Chaffmeister,

If CWB managers make a contract... they must fulfill the contract.

I agree it was not Prairie Malts "Fault" a contract was entered into that the CWB had no reasonable ability to fulfill.

Prairie, You, or I would have all known this was most likely going to be a vindictive bad deal for barley growers.

If it turned out to not be so... fine... let it be.

As was expected however... the CWB directors are baiting their agents...

This scheme is bad news for everyone in our industry!

Growers hate the trade even more;

The Multi-nationals claim injury... but knew this was going to happen with 95% certainty.

The CWB claims the Conservatives are responsible... the Devil that made the CWB do it!

You can't tell me as these barley contracts were drawn up, that any reasonable sane person... would not have been talking about these very issues with the CWB Sales DEPT.

[parsley]

1. So far the contract has not been broken.

2. In other instances, has not the contract been carried over into the next year?

3. If Cargill has a legal contract with the Board, then what the hell is it doing in Ottawa all week? They should be in Winnipeg.

Therefore, believing what you are seeing and watching and hearing, is that the Board's significant other, named Cargill, kept in the backroom, loves single-desk dancing.

Parsley

[Fransisco]

<blockquote>Parsley said "Who made the decision to contract the barley with Cargill? Was it the Government. or was it the CWB or was it the Directors or was it the farmer?"</blockquote>

It certainly wasn't the farmer if it was this wouldn't be an issue. The other three are the ones on the hook here.

Other questions I have is what does the contract we are all talking about here actually say? We're guessing a bit and neither the media, the board or Cargill have given any of us much to go on. Will we see details or just get the usual 'mushroom' treatment?

[parsley]

Let's get technical then.

1.Not the farmers
2. Did Cargill sign on the dotted line with the Government of Canada, or with the Canadian Wheat Board?

Parsley

[BennyHin]

How many of you have seen the movie dumb and dumber? chaff/fran?

[Fransisco]

<blockquote>parsley- "2. Did Cargill sign on the dotted line with the Government of Canada, or with the Canadian Wheat Board?" </blockquote>

Let me answer that with another question. Isn't that the same thing? The CWB is a state trading enterprise, so when you sign with the CWB you sign with the government.

I am open to being corrected here, but this is my basic understanding. I mean that how the initial payments work, and there are all sorts of examples of the government ponying up the cash when the boys and girls at the board couldn't make the sales to back up the initials.