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CWB Expanded Delivery Choice?

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    CWB Expanded Delivery Choice?

    Charlie,

    I guess this might be of use to someone... I don't quite see the reasoning or purpose for this program or how the average grower would use this!

    DO you get it?

    CWB expands delivery choice for farmers across the Prairies

    July 30, 2007

    Winnipeg - The CWB has expanded its Delivery Exchange Contract (DEC) across Western Canada so that all Prairie farmers can trade delivery periods among themselves to suit their business needs. The DEC was launched as a pilot program in 2006-07 to provide farmers with greater control over delivery timing.

    “Farmers get paid when their grain is delivered, which is why more control over delivery opportunities is critical to their businesses,” CWB President and CEO Greg Arason said. “Farmers who took part in last year’s pilot DEC told us the 100-per-cent acceptance and defined delivery periods were the program’s most important features. I’m pleased that we are now able to offer this flexibility to all producers.”

    The pilot DEC was only offered to farmers in southern Saskatchewan. Beginning August 1, all farmers in Western Canada delivering Nos. 1, 2, 3 or 4 Canada Western Red Spring (CWRS) wheat can exchange their delivery periods with other farmers in the program, enabling them to deliver more of their crop earlier or later in the marketing year, according to their own needs.

    The DEC will have 100-per-cent acceptance, similar to Guaranteed Delivery Contracts. Sign-up will be on a first-come, first-served basis until October 31, 2007 or earlier if the 500 000 tonne volume cap is reached.

    Farmers can access a list of available delivery trading opportunities at www.cwb.ca, or by calling the CWB at 1-800-275-4292. They will be provided with a list of names in order to make private arrangements for trading their delivery periods with another participating farmer. The exchanges will be recorded by the CWB.

    Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada’s biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

    -30-

    For more information, contact:

    Maureen Fitzhenry
    Media Relations Manager
    Tel: (204) 983-3101
    Cell: (204) 227-6927

    #2
    One of the CWB's stupider ideas. Rob from farm families that need cash flow (beginning/cash strapped farmers and larger farms with lots of rented land) and pay out to rich high equity established farms. This is a non visible/transparent trading environment where I suspect where bid/offer and settled values are not posted. I could add on complexity around administering when farms have different grade patterns. Finally, this does nothing to contribute to meeting customer needs or maximizing logistic efficiencies. Just another way of shuffling farmers money around outside the pooling system.

    If the CWB wants to do anything, work on establishing guaranteed delivery periods farmers and pay interest and storage the way they do for malt barley and identity preserved crops.

    In case I wasn't clear, I don't like the program.

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