The discussion around the Warburton's contract is pretty much accurate. One thing that isn't recognized is that Warburton's aren't contributing the higher values by their own good graces, as is evidenced by ianben's comments.
The fact that the CWB has negotiating power has helped retain these values. In other words, if there was no single desk, Warburton's could likely get all the variety and qaulity specific production they need for less than what they pay now. They could likely get farmers to participate by paying to cover the required use of certified seed, and a little for identity preservation to the farmer and the grain cos.
The pool account (all farmers) benefits as was described earlier, and the individual farmers who are taking steps (cert seed, meet quality specs, etc.) get rewarded.
One point I caught on to earlier in the thread that is a common misconception was someone referring to the 'CWB handling tariffs'. The CWB DOES not set handling tariffs at the elevator. The grain cos' have the obligation to publicly file their maiximum tariff with the CGC. Farmers can negotiate these fees for service directly with the companies. Make no mistake, the grain companies also charge hefty elevation and removal of dockage fees on non-board crops - but it's hidden in the basis.
Tom
The fact that the CWB has negotiating power has helped retain these values. In other words, if there was no single desk, Warburton's could likely get all the variety and qaulity specific production they need for less than what they pay now. They could likely get farmers to participate by paying to cover the required use of certified seed, and a little for identity preservation to the farmer and the grain cos.
The pool account (all farmers) benefits as was described earlier, and the individual farmers who are taking steps (cert seed, meet quality specs, etc.) get rewarded.
One point I caught on to earlier in the thread that is a common misconception was someone referring to the 'CWB handling tariffs'. The CWB DOES not set handling tariffs at the elevator. The grain cos' have the obligation to publicly file their maiximum tariff with the CGC. Farmers can negotiate these fees for service directly with the companies. Make no mistake, the grain companies also charge hefty elevation and removal of dockage fees on non-board crops - but it's hidden in the basis.
Tom
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