Crystal CPS Protein Premiums

[TOM4CWB]

Why dosn't the CWB pay protein premiums?

I just looked on the Portland USDA price report at;
http://www.ams.usda.gov/mnreports/JO_GR110.txt

Hard Winter Wheat at 13% protein is selling for $.30US above ordinary or 10 percent protein hard winter wheat.

Now the CWB claims that Crystal CPS is designed to be in direct competition with this quality of wheat.

When I produce 13% Crystal CPS, why don't I get the extra $.45/bu US producers get?

If we have a quality problem with CPS, why not pay extra like the US does to make our quality better?

What is the average protein on Crystal CPS being exported today?

The $3.51US for 13% or 3.21US for ordinary hard red winter wheat seems much more than what the CWB pays for Red CPS, even after this market has cratered over $.50US in the past few weeks!!!

[charliep]

I will leave the why alone but maybe go the other way and look at alternatives.

My thoughts are we would have to go more pull driven by customers for things like protein segregation on CPS wheat. Customers would have to indicate the type of wheat they require and the system would be set up to bring the grain in from the farm level that meets these specs - close to identity preserving. As a plug for domestic value added industries like API in Red Deer, this process is more easy done for domestic market or specific export customers that are willing to pay for quality. The system would have to pay premiums over straight grades and some of benefit would have to be shared with the grain company.

Average protein of CPS wheat to date has been around 11.2 %, same as last year (CGC website). My understanding is that there are some really good CPS varieties coming up the system that have higher/more consistent proteins.

Others thoughts?

Charlie P.

[TOM4CWB]

Charlie,

I think it is a good point you brought up about API.

One of the main criteria on getting CPS into API is the protein of the wheat to begin with.

We know that protein is important.

THe CWB didn't used to pay protein premiums on CWRS until literally millions of bushels of Western Canadian pedigreed seed wheat was sold around the globe in 100 pound sacks based on protein!

In the 50's and 60's it was OK for the CWB to have a little competition, they used a little sense with the "monoply" then, they didn't use it against "designated area" grain producers nearly as viciously as they have in the recent past!

We are all the poorer for not allowing competition discipline CWB.

Air Canada providing passenger services in a Monopoly situation is the same as the CWB providing marketing services for selling "designated area" grain farmers grain.

The CWB will not sell our wheat for any more than it is necessary for them to.

And our customers buying our wheat every day tell the CWB it costs too much!!!

I have no way of telling the CWB that they are selling tooo cheeeap!!!!!

And even worse, they believe they are doing me a favor when they sell it at a cut rate price!!!!!!!

And now the CWB is spending millions of dollars out of our wheat money trying to brainwash us into believing that we are too stupid to understand how to market grain at all;

.....and they are the only ones that can do a good job???????

I don't know what is appropriate to say now, I AM SPEACHLESS!!!!

[TOM4CWB]

Charlie,

Sorry about that, I guess I got a little emotional there.

I really do love the people at the CWB.

I just don't love what the CWB institution itself is doing to my community, my province, my country, and how it even hurts my freind Ian over the pond!

This connects straight back into what Ian and Chas have been discussing!!!

[shelka]

If you look at the feed market, premiums ARE paid for CPS wheat with 12% or better. You just need to ask. Price discovery will show that a 60 lb. CPS with 11% protein will receive less dollar value than a 60% CPS with 12% protein. By the way, there are excellent feed wheat prices available for this fall and into 2002.

[TOM4CWB]

What are CPS fall bids now?

I understand with the new Feed Wheat Winnipeg contract, that at Edmonton we should get a $5/t premium, as central SASK is the par point for this contract.

I have never seen the CWB pay a protein premium for CPS wheat yet, who would offer this?