cost of CWB

[dmlfarmer]

Many times it has been stated the CWB costs too much. I would like to know how much should the CWB be spending on marketing Canadian wheat and barley around the world? Who should be paying the costs of marketing Canadian wheat abroad? Should there even be a Canadian agency (CWB Or some other) which seeks new markets or should this be left totally to the private trade.

[AdamSmith]

The single biggest cost of the cwb is the massive cost in lost opportunity.

The cost of the cwb in the barley market is the degradation of the malt industry. New plants are not being built here, they are being built elsewhere. It's just a matter of time before our malt industry will follow the same path as the box cars.

Winter wheat will probably suffer the same fate. We can only go for so long getting 2/3 full value for so long before acres switch permanently.

On spring wheat, besides the year in and year out $1 bushel less we get than world value our varietal development seriously lags other nations wheat development with respect to disease resistance and yield potential.

The "marketing costs" are inconsequential compared to the structural costs and the costs in lost opportunity.

[Zaphod]

Accredited agents sell at least 30% of the Cdn crop, and as much as 50% in some years. The CWB should have zero marketing costs on those sales. I know that other sales are presented to the CWB regularly by other agents but get rejected for reasons other than price. If the CWB wants to, they could sell the whole crop through accredited agents without getting out of their chairs all day. That would mean zero costs.

[bucket]

This accredited exportor thing I don't get. I have 40% of my durum that will go unpriced and unsold. Why don't those AE's come and bid for my grain for those sales. Why do they have to go to the cwb to make the sale that the cwb can't or won't?

Its sort of like being forced to do a buyback on grain they have effectively passed on. ( the 40% still in my bin by july 31) If I go find a sale I have to buyback something the cwb won't buy.
Its truly illogical and a huge cost.

If they would say - here is freedom to market the last 40% of my durum - I would still deliver the other 60% to the cwb.

On another issue of cost - why is the cwb forcing costs to pick the crop year you sell your grain in. (see ppo updater last issue)

[Hopperbin]

Cost not sure but I believe we get F894ed.
First they tell everyone the accreditted exporters are evil, multinational, not in consumer interest(make food that is bad for you). Then by having the CWB we are actually more reliant on them. They don't cater to smaller higher value production. No wonder the Americans can export for higher price than the CWB.
Another issue developing this year is not fully supplying the Chinese market. We are going to lose this business for next year as the European farmers are ramping up production of malt barley this coming year to supply the market. So we don't sign commitments this year will we get them next year? Goes with Adams fact of lost opportunity.

[chaffmeister]

not a cost of CWB response, but Something someone showed me recently relates to a comment made on this thread:

Canadian malt barley into China over the years (000 tonnes and % market share):

04-05.........674.........33%
05-06.........537.........24%
06-07.........395.........32%
07-08.........254.........21%
08-09.........250(?)......19%

China was touted by the CWB as the big growth market for Canadian malt barley a few years ago.

What's happening?

Why would the CWB be turning business away?

[furrowtickler]

Because China is buying high grem feed barley for malt? Just a thought.