Dual Marketing

[cottonpicken]

From the other BIG thread.

Why would the cwb die in a dual marketing scenario?

The no infrastructure arguement doesnt make sence to me.

The cwb brokers the grain into the market to the buyers.

It could expand to include all crops and even other commodities.

If pioneer says were not dealing with you,cwb says fine your going to go broke because our massive volumes will be sold to your competitor.

Am i missing something?

[Fransisco]

Nope you got it right.

[Fransisco]

That is the way it would work. CWB supporters only stick to that arguement because it's been told to them that way by some Board representitive. And they don't know how to think for themself.

Kind of sounds like a spoiled brat....doesn't it?

I want to be on the ice all the time playing hockey, if I can't I quit.

[Fransisco]

It's more like if I can't have the puck all the time, I quit.

[stubblejumper]

It will change when the majority of producers want it to.

[Fransisco]

Or when the politicians finally come to their senses and realize that the human rights of western farmers are just as inalienable as the ones in the east. And that no one gets a vote on another persons human rights.

[Fransisco]

And I wouldn't get too hung up on the whole majority thing. The barley plebiscite and ten years worth of permitbook surveys make it pretty clear that the majority want change, particularly when it comes to barley.

Single deskers have the same amount of respect for democracy as they do for individual rights. <b>ZERO.</b>

[Jagfarms]

In a multiple seller environment, sellers are
motivated to buy grain as cheaply as possible.
Competition will be a good thing for them. When
you’re buying a product you want as many
sellers as possible, so you can shop around for the
best value among competing sellers.
Today, buyers can’t play sellers off against each
other. With the CWB if a miller wants to purchase
No. 1 13.5 CWRS today there’s only one place to call
– the CWB. In an open market they’d contact grain
companies A, B and C, specify the grain they’re
looking for, and then compare the offers and select
the lowest price.

Currently grain companies are in the business of
receiving, grading, storing and handling
wheat and barley in the most efficient way possible.
They make all their money on these two
crops through these activities. In an open market
they suddenly have another profit opportunity
available to them. They can buy your grain at a low
price, sell it at a higher price and pocket the
difference. There’s nothing unethical about doing
this -- it’s just good business.
The job of any grain company is not to ensure
farmer profitability, but to ensure its own
profitability. They have shareholders that expect a
return on their investment.
The CWB’s only shareholders are western Canadian
farmers. Therefore the CWB returns all
income, less operating expenses, to farmers every
year. That means when a sales opportunity at a
higher rate does occur, you get the benefit of it.


In an open market single desk selling premiums are
gone, as is farmer control of a portion
of the industry. End users have several sources to
choose from for the same product and
grain companies can make money on buying low
and selling high and pocketing the
difference. Farmers, on the other hand, become
captive sellers to a handful of companies
that are intent on extracting every dollar they can
from the grain marketing system.

Look how some of the big grain companies are
tendering out rail cars at a loss quite often trying to
get more market share and squeeze out the little
guy. With out the CWB there would be more of this
going on until most of the little guys would be
squeezed out and there would be only one or 2 big
guys left. It would not be good for the small
independent grain terminals and producer car
loading facilities. It will be hard for them to
compete with the big guys. It would be bad for the
small towns and small business. The CWB
currently plays a MAJOR role in grain logistics
and other aspects of the grain marketing system.
Working with other parties such as the railways they
attempt to ensure cost effectiveness and service. It
would be a logistic nightmare.

[cropduster]

Jag,accurately says,"The CWB plays a major role in grain logistics and other parts of the grain system".Why do you think Stubbly(other than being a self professed `small`farmer)and others in his area LOVE the CWB?It`s because of the excellent oral sex they get at their rail line!No mention of the cost to others.Why would they, they`re happy in their socialist world.

[newguy]

I think when next years contracts are made a simple survey should be asked.. Would you if you could like to have choice to market this grain.. This survey would truly find out how many farmers and how many bushel would like a choice market system..

[stubblejumper]

People like cropduster are still pissed off that their rail line was abbandoned 30 year ago. yhey won'.t be happy till all wester farmers have to haul grain long distances

[chaffmeister]

Since Jag is ignoring my questions on the long thread and has since moved over here repeating the same drivel, I'll re-post this here:


I think I’ve addressed this stuff about a dozen times before here on Agriville. And reading Jag’s recent postings makes me wonder why it just doesn’t stick. It confirms in my mind there’s more to this CWB debate that straight objective logic. There’s a religious subjectivity, or blind faith, to the approach of CWB supporters like Jag. Absolute faith in the unknown – unwavering in the face of facts and objective logic that decry the value of their icon of socialistic power. There’s nothing any of us can present that will sway them for they will not allow their faith to be rocked.

What’s utterly amazing to me are people like you, Jag. It seems you’re a successful business man, and you’ve done it without the support of the CWB. You’re smart enough to build your own trucking business along side of your farm and special crop marketing. But - and sorry to be blunt - your concept of how the grain handling and transportation system (GHTS) works is juvenile. It’s based on an absolute absorption of the CWB doctrine, fraught with flawed economic and business theory, and combined with a nearly total absence of understanding of how the system works.

You’ve been fed a line and it sounded so good you’re now blind to anything else. What you write in your posts is not anything you know as true – it is what someone else has told you. And you accept it as fact. Yet, when countered by actual facts, you reject them out of hand.

Why do you believe the CWB rhetoric?

Why do you disregard objective logic?


Sincerely and respectfully,
Chaff

[TOM4CWB]

Jag,

Your explanation of CWB marketing in a choice market... does not line up with either the AWB experience... or even better examples like dry bean marketing in southern Alberta.

Production Contract growers... especially when so much is now grown and marketed in this manner in the new 'IP' world... simply does not work in the manner used... cause if a good contract is made... poaching of produce is not even an issue... nor is pricing when a decent basis is part of the production contract from square one.

The 'fear mongering'... attitude some folks have... is totally bogus... Canola proves this on all sides!

[craig]

Jagfarms
I would argue with your logic that it is not the role of a grain company to ensure farm profitability.It is quite obvious that it is not the role of the CWB to ensure farm profitability.It is their responsibility to market your grain and they couldn't care less what your bottom line is. A grain company makes it's money on through put in their facility. It does not make sense to squeeze the farmer so tight that he has nothing left to invest back in his operation. No investment means less production and less through put.Do you think there is any accountabilty by the grain sellers at the CWB if they do either a good or poor job of selling your grain.

[furrowtickler]

Dual marketing will work, and a open market works just fine with canola and others. How many bills are you going to pay when the cwb only sells 60-80% of your wheat? You will be lucky to break even with board grains this year based on the fact you need the first 70% sold just to pay the expenses.