CWB sells wheat at $30 tonne discount

[kamichel]

Myself as a farmer grain seller I would not sell my grain for less to a feed mill when the price they have to pay is say 4 dollars per bushel, if the price is 4 then the price is 4. It looks to me like the
Brazilians need wheat. Does the Wheat Board call this building markets because we do not normally sell to them? At the moment there is a shortage seemingly developing , why undercut someone that is not there. Why not pay more for our supposedly higher quality wheat that we have ever grown in past 10 years. What about the wheat board service? Is it worth anything? Burbert we are not all here to stampede to sell our grain off the combine.

[gregpet]

Burbert, better than letting the CWB cut our throats for us as they have been since their inception.

[chaffmeister]

wilagro:

You are absolutely right when you said the following in reference to the CWB:
<i>Suppliers discount prices all of the time for substantial amounts/quantities.</i>

But be very careful. I know someone quite well that said the exact same thing about the CWB regarding sales on malt barley. He actually wrote it in a study. The Sparks Barley Study of 2004 to be exact. And in response, the CWB wrote a couple of "threatening" letters to the president of Sparks. I wouldn't want to see a good CWB supporter like yourself get on the CWB's bad side. Trust me, I know from personal experience, they can be pretty vindictive.

Also, you're right about the "trade" discounting sales. But to make sure that idea is in context, keep in mind that when they do it, it's because they are already long the product and maybe they need to move it for commercial reasons, or some other reason like that. But - and this is important - it doesn't set the price for farmers, or even for the rest of the trade.

[chaffmeister]

Oh yeah - and Incognito's hit the nail on the head.

Two weeks after their own bullish weather report?!

If you discount at all, it's (as I said earlier) for commercial reasons, or you are very bearish (and you think you'll be able to replace it at lower prices later) and are anxious to get a sale on before the price drops. But its risky business because you may be wrong and your competition will be happy to prove it to you if you are wrong.

[chaffmeister]

Sorry - I meant two weeks <b>before</b> their bullish weather report.

[Herbdoctor]

Yeah sure you want your FREEDOM and that is capitalized becauase you are emotionally driven it's not because you really care about how the CWB markets your grain (if you cared that much you'd run in a board election and try and change it from within...) but here's a little retaliation to your F word... you see freedom doesnt come without Democracy...and a stacked 3 question vote with numbers on the top so the conservatives can know how you voted and where to apply the most pressure to Steal "Freedom" for the few people along the 49th who see a better stop price to the south every once in a while... is extremely undemocratic and very illegal. the friends of the CWB have no affiliation with the CWB and the people spear heading the movement were chosen because of their success in previous engagements with farmers who will gladly illegally try to steal freedom. Bottom line is if you want freedom look to your government and ask them to have a clear cut yes or no becasue there is no inbetween the CWB does not own grain elevators and is simply put in place by farmers to shield farmers from Margin MOngering Grain Companies and frieght thirsty railways (by the way you guys really blew it with the crow rate) and go figure you follow so blindly...Hey you know if the USA, Railways, Major grain companies, The conservative government (who cater to big business), and well the rest of the grain marketing world tell you its a great idea to get rid of the CWB then it MUST be a good idea (They care so much for the well being of your little farm and the success it will bring to you with your keen marketing ability and all that free time you have to spend watching the market from the lake on your holidays). I tell you if the market ever goes wide open you'll be at the mercy of the first neighbor that needs to pay a bill. Enjoy your freedom if you get it while you still own your farm.

[Herbdoctor]

"spot price to the South...."

[chaffmeister]

Herbdoctor:

I know for a fact the CWB system is costing you and every other farmer out there money - a lot of money.

What would it take to prove it to you? I'll do what I can for you.

[Herbdoctor]

tell me what it will cost to deal directly with the overseas buyers and how producer cars are affected and how much spare time i need to market myself... and where i can get ahold of a sattelite so i can compete with Cargill

[highwayman]

Herbdoctor
Please explain to me how a 62% majority is undemocratic. How many farmers have come forward and said they did not understand the options on the ballot. Do you really beleive the government cares how each individual voted. The CWB has been asking these sames questions to farmers in their surveys for 10 years and have acheived the same results. Its not the questions that you and the CWB dont like its the answers. In your warped world democracy means enforcing your opinion on the majority even if it restricts the basic human rights of our society. Had there of been a plebiscite on slavery in the previous century with a 95% majority supporting it would that have made it the right thing to do for you. In an open market for wheat and barley you and I will be able to market our our production the way that we see fit that is best for both of us however different that may be. That is all the choice side has ever asked.

[just_wondering]

herb doctor you want democracy you have it. No not the plebiscite that was a useless process that had to be gone through to satisfy the regulations that producers be consulted. It was said many times before the plebiscite was called that whomever loses will try to disqualify the results for any number of reasons check your back issues of the producer if you like or maybe someone has the threads from this site archived.
No the democracy I am talking about was the general election in which the Conservatives got elected. It was an election Plank in which people either said right on and agreed or held their noses and still voted Conservative. They did virtually sweep the designated area. Or do you want to start telling our politicians that election promises don't matter.
You could bring up equalization, income trusts or other broken/half kept/ill conceived promises but you will get your vote when the writ is dropped. the plebicite/CWB elections are a farce how do you get 80,000 farmers who should not have any say on how I market MY grain.

[AdamSmith]

tell me what it will cost to deal directly with the overseas buyers
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same as it costs you today to deal with overseas buyers of Canola, Flax, Oats, Peas, Rye, etc. etc. etc.

My costs are zero, what is yours?

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and how producer cars are affected

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What is the percentage of grain sold via producer cars? I bet it's less than 1%, I bet it's less than .1%

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and how much spare time i need to market myself...

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No wonder you guys are in a panic, monitoring the market is a very important part of the time I dedicate to operating my business, to view the task of marketing as something you do in your spare time speaks volumes.

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and where i can get ahold of a sattelite so i can compete with Cargill

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Uhm, you don't.

[chaffmeister]

<i>...tell me what it will cost to deal directly with the overseas buyers...</i>

Why do you want to deal directly with an overseas buyer? Often it's cheaper to have someone who is positioned to do certain things, to do those things. Every grain company out there - some you've never heard of (some without facilities) would gladly compete for your export business. When you buy groceries, do you go to each food company to pick up each item or do you make use of the services of a grocery store?

<i>...and how producer cars are affected...</i>

The vast majority of producer cars being shipped are CWB grains - maybe all of them. I am told that this is to get around the cost of country elevation at the high throughputs - I'm sure there are a lot of other reasons but since we're talking about the high cost of the CWB system, let's stick with this.

It is a known fact that the non-CWB system has a much lower cost than the CWB system - competition keeps margins tight. The ONLY reason there is a financial incentive to loading producer cars is because of the high CWB elevations you're avoiding; you wouldn't even dream of loading a canola car if all that you saved was what the elevator company makes handling canola in the country.

<i>...and how much spare time i need to market myself...</i>

Only you can answer that one. (If you think you need to market in your "spare time" perhaps you're in the wrong business). Perhaps some of the self-marketing farmers reading this will share their own experience.

<i>...and where i can get ahold of a sattelite so i can compete with Cargill</i>

Why do you want to compete with Cargill? You'd be far better off with them competing for your business, along with all the others out there.

(I fault the CWB for this notion - the CWB thinks its a grain company and needs to compete with grain companies. When in reality, the CWB is a farm collective - they should be making sure grain handlers and end-users compete for the grain it has at its disposal. Something they have failed miserably at.)

[AdamSmith]

The topic is the CWB deliberatly selling farmers grain for $30/t discount, never mind that farmers cost have risen dramatically in the past year and this only add insult to injury with respect to this particular give away,

And the response from the cwb "friends" is .... drum role if you please.... HOW DO I GET A SATTELITE?

If ever there was an example of being disconnected from the real world, that is it!

I have to laugh, because I'm too old to cry!

[charliep]

Herbdoctor

I note your reference to Cargill. I also note Cargill (Prairie Malt) is asking for a one year extension to CWB barley single desk status. Your assumption is a major company like this is all knowledgeable and powerfull. If Cargill didn't benefit from single desk, why would they be asking for this extension?

Is Cargill a CWB friend or a foe?