CWB needs money for Barley.

[kamichel]

Just having a problem with the logic of the CWB asking for payment of poor sale prices.
Does the CWB plan to give all the money if they get it back to producers that contracted with them on the minimum price guarantees.
Will they plan to give it to farmers that contract in the future?
Will they put it into the pool account?
Will they put it into the contingency fund?
In any event the money if they get it should go back to the farmers. So what is their plan? What is fair? Some farmers contracted for different min. prices. Why shouldn't the CWB cough up money from the current contingency fund and give that to producers.
So far the government as far as I know intends not to give the CWB anything to help farmers deliver to them.

[AdamSmith]

Here's an idea, maybe the cwb should ask the sask and mb governments to cover their poor marketing decisions?

Get the prairie dippers to put some money where their mouth is. I'm sure the taxpayers of Winnipeg,Regina and Saskatoon, would be happy to help out.

[charliep]

Will put here to keep out of the market outlook stuff but am curious how the CWB would have (or even worst will react if they win the court case).

Open market. Feed barley business done in the north africa/middle east. Price signals that allow profit right along the supply chain are delivered immediately to all involved.

Single desk. Market signals come via the accredited exporters to the CWB. No one at the CWB wants to make a decision about selling - might go higher, don't know if farmers will deliver, don't know crop quality, etc., etc, etc. CWB sales department realizes the impact of this feed barley opportunity on priced malt barley contracts with maltsters and get even more nervous/less willing to let this price signal out.

Initial payments go out that are 60 % of the PRO and 50 % of local based payments. Not competitive with local feed markets. Farmers don't sign contracts (CWB/grain companies likely would get together on things like payment guarantees/no cost 100 % EPOs but still not competitive local market). No sales occur/market opportunity slips away as the demand is covered elsewhere/buyers become more willing to wait for Aussie crop. Single desk supporters celebrate their successfull marketing year.

[charliep]

An interesting article in e.malt (available on line).

Europe: Farmers reduced the production of spring barley, considered unrewarding

Farmers had reduced production of spring barley since years, particularly in France, Germany and the U.K, analysts reported July 2. The reasons are well known: price pressure extending from brewers to maltsters to farmers made malting barley an unrewarding grain for most farmers, and they turned to other grains and oilseeds.

Meantime the bio-energy boom started, which gave still another and very rewarding alternative. This year spring barley acres shrunk most in Denmark and Germany. Price levels were expected to be much higher than in the past, but present levels exceed even those of last year.

Maltsters’ strategies have changed. Instead of selling malt early and waiting for the harvest for their barley purchases, they cover each malt sale immediately in the barley market. Obviously heavy losses of past years enforced the new pattern. Farmers and coops were happy at first to sell at apparently good prices, but constant purchases emptied markets and drove prices up.

[kamichel]

Good Idea Adam Smith. I will bring it up with an MLA. See if they can *****foot around that one.