Dual Marketing

[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.

[agstar77]

The AWB is just another Co-op or Pool . It will probably suffer the same fate as our Pools and be squeezed out. The scorpion will sting the fox because that is what they do whether it makes sense or not. If some of the farmers don't survive, so what , it is the free market system.

[jensend]

if the grain co's just made money on throughput why do basis levels change on non-board? they are masters at working cash against futures.

[silverback]

Do you have even a sliver of evidence that the cwb monopoly has been able to keep farmers from being "squeezed out" agstar?

The cwb has never shown any interest in whether it's "owners" survive from year to year.

It has only been interested in it's own survival and that of it's 493 employees.

(Think about that number for a bit)

[TOM4CWB]

agstar77,

Any idea how long the Dry bean pool has been going in southern Alberta?

They have gone from AWP... to Agricore United... to Viterra... and bounced out every competitor that came in to compete for beans in Alberta. They were strong in 1990... and just as strong today.

We have many seed cleaning plants in Alberta... that could easily be working to fill specialty wheat sales... new generation coops... independants... your speculation would only be valid... if the pool operator did not want to continue operations... and then as in the Aussie experience... the best Co-op with the best prices/risk management... should be the operator of choice in any event!

[TOM4CWB]

jensend...

Basis is the demand signal that pulls our Canola forward into the grain handling system.

But I am sure you knew that.