New CWB Organic Programs

[parsley]

This is what Parliament says:

"14.1 The Board may grant a licence for the transportation from one province to another, or for the sale or delivery anywhere in Canada of wheat, wheat products, barley or barley products, but no fee shall be charged for such a licence.”


But who gives a damn about Parliament?


Parsley

[charliep]

Parsley

Is the organic delivery contract still being offered? Was a pilot program in 2006-07.

http://www.cwb.ca/public/en/farmers/organic/pilot/

[charliep]

Still don't understand why the CWB can't offer cash contracts in cooperation with maltsters for farmers who choose to use their services.

My assumption is the last published PRO in March accurately reflected the contracted values on CWB sales to maltsters. Otherwise, where did this forecast come from? Reference - http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2007_20070322.html?OpenDocument&CropYr=2007-08

Since the March PRO, western barley futures have risen by $20 to $25/tonne. See http://futures.tradingcharts.com/chart/BA/A7. Since no priced contracts with farmers have been signed (at least with the CWB), what steps have either the CWB or maltsters taken to manage their price risk/ensure they can get an accurate price signal to farmers that reflects the market and ensures farmer deliveries?

If I look ahead, I think there will still be services that a renewed CWB can offer maltsters (starting 2007-08). These two groups will then have to develop programs/contracts that farmers will participate in.

[parsley]

July 5, 2007


CWB Announces Change to Organic Policy

Dear Organic Stakeholder:

Following consultation meetings with organic farmers held in April 2007,the CWB board of directors approved at its May 2007 meeting two major changes to the CWB organic policy.

We would like to tell you about these changes and how they will improve the service the CWB offers to the organic industry.


Organic Fixed Spread Contract (OFSC)


At the April consultations, the CWB presented farmers with four options
for the organic policy and solicited feedback.

The new policy specifically addresses the concerns and requests raised during the consultations by taking elements of the four options and creating an approach that is designed to best meet the needs of all farmers.

The first change is to simplify and reduce the uncertainty of the Producer Direct Sale (PDS) or buyback process for organic farmers.

Farmers will now be able to obtain an export licence or sell inter-provincially by making a low, stable, up-front payment to the CWB.

This new program, called the Organic Fixed Spread Contract (OFSC), will
be available August 1, 2007.

The new program addresses the concerns that were identified during the CWB consultations, such a unpredictability, volatility, potentially high costs, complexity and interest charges.

With the new program the transaction with the CWB will be simple.

Farmers will phone the CWB, provide shipment information and proof of
organic certification, be quoted the rate and then be invoiced.
Farmers will be required to pay immediately by wire transfer, VISA, or certified cheque.

Once payment is received farmers or the exporter will be issued the export licence and the transaction will be complete.

The payment will vary depending upon type of grain and market destination and will be set for the whole year so that organic farmers will be able to negotiate forward deals with buyers with greater ease.

Since The Canadian Wheat Board Act obligates the CWB to collect a sum
which, in the opinion of the CWB, represents the financial benefit to sales made outside of the pool, the OFSC rates will be established to reflect the CWB's assessment of that amount for organic grain.

The OFSC rate will return to the pool compensation for the benefits that organicfarmers receive from the CWB when selling their grain outside the pool,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 pertonne, for the EU and the UK between $3 and $5 per tonne, and for Japan between $4 and $7 per tonne.

The actual rates will be announced in
prior to August 1, 2007.

So starting August 1, 2007, farmers selling to grain companies can choose either the OFSC and receive a cash price from the company or go with the current system, in which case they would receive the conventional pool price plus a privately negotiated organic premium from the company.

Farmers wishing to sell through the conventional pool(either to a company or through the PDS) must sign up in advance for an A series delivery contract byOctober 31, 2007, after which this option will not be offered.

The new contact person effective August 1, 2007 for organic OFSC sales
will be Wayne Foubert at 204-983-5760.


In the meantime, farmers wanting
further information on the process can call Donna Youngdahl at 204-983-5799.






Cash buying and other services


In addition to approving the new OFSC, the board of directors also
expressed its commitment to providing value to organic farmers and actively supporting the industry.

To this end, additional programs are
being developed for farmers, including a new cash buying program for organic grain.

The CWB organic marketing pilot for 2006-07 is wrapping up. Under this
pilot, the CWB offered a small, trial pool for organic grain. The experience from running this pool illustrated the opportunities,challenges and solutions for CWB marketing in the organic sector.

It was clear from both the pilot experience and the consultations that a
traditional price-pooling marketing option for organic wheat does not
meet the needs of the majority of organic farmers at this time. Many
farmers, however, continue to want the CWB as an option for selling their grain, and value both the marketing service and the price signals created through CWB involvement.


The CWB has therefore dedicated additional resources to organic marketing, and has assigned Patty Rosher to join Donna Youngdahl on the
organic marketing desk.

A cash buying program is being developed an details on the program will be announced during the 2007-08 crop year.

In the meantime, organic farmers interested in potentially selling their
grain to the CWB in 2007-08 can submit their contact information to the
"CWB Organic Cash Buying Farmer Registry".

To register, farmers can fax back the attached form to 204-983-3841, attention Organic Marketing, or e-mail their contact information to organicfarmerdirectory@cwb.ca.

The CWB will contact those on the registry with offers for cash sales as the opportunities arise.

Thank you to all who attended the consultation meetings and who provided
input on CWB organic marketing issues. We wish everyone a successful
growing season and harvest.

Best regards,


Gord Flaten
Canadian Wheat Board
Vice President
Marketing

[parsley]

"Farmers will now be able to obtain an export licence or sell inter-provincially by making a low, stable, up-front payment to the CWB."


The legislation speciafically states no fee shall be charged for interprovincial.

What the hell is the matter with these people?

[GrainBeetle]

Parsley, if there was deerpoop in CWB barley or wheat shipments in the past, why blame the cwb? Why not blame the accredited exporters and or the line companies who originated this crap?

Even Zaphoid agrees, please see this thread:
https://www.agriville.com/cgi-bin/forums/viewThread.cgi?1184343598

What port terminal was responsible? Did you know the cwb doesn't own or control any port terminals? Also what is the CGC's or SGS' responsibilities?

Your allegation of the CWB shipping feces infected grains is quite damaging to Canadian grain standards and grain quality. What if several international grain buyers were to read this thread or have it brought to their attention and then later decided not to buy Canadian on the basis of your allegations?

Could you imagine if a story was published about a consumer in Saskatoon finding crickets and maggots in their dry lentil soup mix from an organic farm in SE SK? What if this unfounded, alleged story was published or sent to their customer's, the media and the CFIA? What would happen to this organic farmer's business and her reputation?

Thanks Parsley for supporting Canadian Agriculture --- not.

[TOM4CWB]

Grainbeetle,

I believe you missed the whole point of Parsley's post!

Organic grains do not need the CWB's brand, varieties, CGC grades, least of all terminal cleaning that adds back deer poop after charging for cleaning the barley to "commercial" standards not used by Organic Grain in any event.

Any system with the $$$millions upon $$$millions in investments in cleaning equipment... that doesn't (but easily could) remove deer poop... has a serious management problem!

Only In Canada for export ~!~

I have found SE Sask soup mixes to be of high quality and tasty!

I don't see the connection, as they are not a commodity... these lentils/beans etc. are easily cleaned at the local level and don't have any tookage added back!!!

[parsley]

If the CWB insist on a monopoly, they have to take responsibility.

Farmers sell their grain to the CWB and are paid by the CWB.

It is the responsibility of the CWB to hire/use players that report back to them.

Demurrage, for example. The CWB is totally responsible for the bill that accrues, and the deal that is made.


If I had another option to sell to, other than the CWB, I would agree with you, but the CWB will not allow any other option.

When u want to be the sole boss, you gotta take the heat!

Parsley

[Fransisco]

Speaking of demurrage. I recently heard that the board negotiates twice as big a window to load ships as the private trade. What they do essentially is pay a certain amount of demurrage up front through the price being offered for the grain.

Neat trick.

[Burbert]

Charliep, How many times do I have to point this out to you guys. The reason barley prices have climbed is because last year, a very,very, very, small amount of barley was grown/selected as malt. NOT BECAUSE OF CHANGING THE WAY WE MARKET BARLEY. Guess we'll now have to grow/market it the way the yanks do, cause apparently there is no other way. Canada can then go on picking lint out of its navel, since this is a MAJOR step forward in farming and maybe the whinnning and snivelling will stop now. Praised be Chuck and the ABBC are now in charge, yyyyyyyyyyyuuuuuuukkkkkkkkkkk!

[parsley]

And that is why the responsibility basically must get dumped on the CWB's doorstep.

Last week, I spoke to a guy who letter-whipped a supplier to the company he was mad at, instead of writing a letter directly to the company he was mad at.

Farmers need to recognize this kind of thinking and make sure this kind of thinking does not become management. It is what defeats us.

Parsley

[TOM4CWB]

Burbert,

HOW MANY TIMES MUST THIS BE POINTED OUT TTTTTTT0000000 YYYYYYYOOOOOOOUUUUUUU

You have intentionally ignored the obvious.

When the CWB sells into the millions of tonnes, at substandard prices, like the Malt Co's swear they did...

Why would any Malt co offer any more than what they can buy it from the CWB...? Obviously the CWB offered this grain at, at least $50 million under Fair Market Value.

Please explain to me how this is anything but proof you are wrong on the marketing of Barley?

Go to long term USDA charts... and see how US growers on average get more for their barley than Canadian growers!

I believe Charlie has posted these links up before.



And... since the CWB is willing to tell half truths and willing to distort real market signals on barley... what makes you so sure the same isn't happening with wheat... when there is strong evidence to show that as well?

There are none so Blind... as those who will not see!

[AdamSmith]

Burbert, explain to us why oct wpg wheat has only gone up $5.7/t since March 30, (roughly the date when the plebicite results were announced),

and oct wpg bly has gone up $28.7/t?

prior to that both tracked a very similar pattern based on the value of domestic feed grain only.

After the plebicite barley began to chart it's own path based on international demand.

If was what you say, feed wheat would have gone up a similar amount as both are feed grains that can be substituted for one another.

By the way we are talking new crop here and there is a big crop of barley out there and it's still going up.

[BennyHin]

Where did you hear that Franny? How does the CWB's dem/des rates compare to other commercial freight contracts?

[Burbert]

Adamsmith, The price has been going up/retreating etc., cause of the cornfusion that exists in the market at the moment. Nobody, but nobody knows, what is going on, with exception of the Angriville boys, who are great guessers at the best of times, and of course are soooo special, grain companies lovve them, since they are bound and determined to see everyone associated with the CWB, doing time, cause they are/were soooo croookeddd!!!