New CWB Organic Programs

[charliep]

Can someone help me untderstand the new CWB organic program announced yesterday?

New Program for Organic Grain
In 2007-08, farmers will have three options for marketing their wheat, durum and barley.

The Organic Fixed Spread Contract: a new CWB program for organic grain, designed to provide organic farmers with increased flexibility and greater certainty on returns, taking effect August 1, 2007
The CWB pool price plus negotiated premium
CWB cash buying
Organic Fixed Spread Contract (OFSC)
The OFSC allows farmers to obtain an export licence or sell inter-provincially by making a low, stable, up-front payment to the CWB. The payment is based on type of grain and market destination. It represents the benefits that organic farmers receive from the CWB, such as branding, product and variety development, and advocacy on issues such as transportation, trade and biotechnology.

The payment for wheat sales in Canada and the U.S. is expected to be between $2 and $5 per tonne, for the EU and the UK between $3 and $5 per tonne, and for Japan between $4 and $7 per tonne. Rates will be confirmed prior to August 1 and remain in effect for the entire crop year.

The OFSC is easy to use.

The farmer phones the CWB (Wayne Foubert 204-983-5760) with shipment information and proof of organic certification.
The CWB informs the farmer of the applicable rate and invoices the farmer.
The farmer pays immediately by wire transfer, VISA, or certified cheque.
Once payment is received, the CWB issues the farmer or exporter an export licence.

[TOM4CWB]

Charlie,

Logic has prevailed!

Long live the "single desk" at $5.00/t!

[Lifer]

Improved maybe. Doesn't it make you wonder why they ever got involved with Organics in the first place?

Isn't Organics at its roots more of a way of living?

[AdamSmith]

Sounds alot like a protection racket to me!

[charliep]

Won't go off topic but will note organics provides a lot of farmers a good living (they treat it like a business). Organics is not farmer driven - it is consumer driven in particular niche markets and demographic profiles. Is the consumer who demands this product right or wrong - don't know. Just know someone who makes purchase decisions by getting out their wallet and buying something ultimately drives the market.

Which takes us back to the original question is do these individuals benefit from the single desk to the tune of what they are being asked to contribute to everyone else in the pooling system via this deduction?

[craig]

What a great offer. As a producer you have no choice and the CWB gets to decide what the value of the so called benefits are.If as a producer I brand my product on my farm of what value is the CWB brand. Second did I as a producer ask the CWB to represent me on the issues noted. It's ironic that while the friends of the CWB go to court on the barley issue claiming farmers didn't get to make the decision, the CWB unilaterally continues to dictate to the organic industry. Maybe its time we charge the CWB $5.00 a tonne for the privilege of handling our grain.

[Lifer]

Answer to charlie P

No because to be selling or buying organic wheat you are not trading commodity wheat.

The CWB should have never got involved in organics in the first place. How does the CWB add to the holistic approach of Organic Farming?

[cropduster]

You are right Charlie....different angle,different light......it never has been about MARKETING grain!!!!Now these donkeys are truly caught between a rock and a hard place.Farmers WILL know Aug 1th(as they are observing by the marketplace)that the "strength" of the CWB was only used to smother their activities.CWB lawyers argued they had "no duty of care to farmers".The TRUE market will show that in spades!!!!

[parsley]

Organics....

1.Organics is and always was comnsumer driven, as charliep nicely makes that point, again. How many have bought a diamond ring, for goodness sakes? For what? You've spent thousands of $$$ on a piece of rock for your woman. That is good marketing on someone's part.

2. Property rights issue...The CWB et al always try to transfer the issue from me growing the grain, owing it and selling it, to an economic issue...the CWB get s more money for ypou. They need to be reminded 40 x/day to take a flying leap into the bowels of single-desk hell.

3.JOBS and employment at the CWB...here they are hiring Patty Rosher to work organics. That should read work organics for cash. We don't need any Patty Roshers. It's a cash layout for sweet tweet. It's about providing JOBS, JOBS.

4. Branding? How about deerpoop grain? CWB Who is famous for Deerpoop grain?CWB

CWB CWB CWB

Deerpoop specialists of the World.CWB

Branded properly/ CWB/DEERPOOP SYNONYMOUS


Parsley

[TOM4CWB]

Charlie,

This is a large departure from past CWB policy... in essence a deregulation of the organic wheat and barley industry.

Past arguments about the "single desk" requireing the "buy back" on this grain for it's survival of the CWB, are now proven a hoax...

Change is on it's way... one has to wonder about the politics of this... the end of the "single desk" in theory... before we even get to the Federal Court hearings on the 25-27th of July in Calgary!