ConAgra posted quarterly profit!

[SASKFARMER3]

ConAgra Foods Inc (CAG.N) posted quarterly profit that beat analysts' estimates and raised its earnings forecast for the full year as commodity costs eased and price increases helped lift sales.
So in simple terms (for Dave) they paid farmers way less for the ingredients and gouged the consumers.
HM.
Ill say it again the system is flawed. They borrow farmers money to put in crop. Read the fine print they have you by the Nuts. They know how much grain you have since most are so stupid to tell the elevator companies how large of piles of grain they have sitting on the ground. Farmers use them as advisers for crop inputs, They run the fert show and chem show. Only a few companies left so who do you pick to go to.
It goes on and on and on. They make huge profits every year farmers take it in the back side every year. Sooner or later this game has got to change. I know one thing we will loose some of the young guys this year that came back two years ago to farm with the price drop that's taking place. Their already heading back to the city for work.
No Iam not for organizations like the CWB hell kill that goose because she never layed a golden egg. But when farmers have Cash they control the game when its borrowing from the likes of Grain companies or Banks you know who wins and its sure not the farmer.

[Zaphod]

It's hard to know where to start with this. You don't want companies to make money and you want farmers to band together to keep other private enterprise from making profits. That sounds worse than the CWB to me. I know you're no fan of the NDP and the CWB, but if it walks like a duck and talks like a duck...

One other thing you should check on is that Conagra doesn't own any elevators or crop input places any more. They sold them a few years ago.

I'm guessing you're tired from the long days and just need to rant. But you say that grain companies have some magical ability to know how much grain is on the ground. You give them way too much credit. And in other rants, you say that the USDA and others are lying or incompetent about the size of the crop. And you know this how? Have you counted soybean pods in Nebraska? If it's just that you're wishing for a smaller crop because you haven't sold anything yet, just say so.

[Zaphod]

Haha!!!Lmao!!!

[dave4441]

I think CWB is your best bet Saskfarmer. Maybe move to 100% board grains, stay in the pool, get the average.

RE ConAgra- I do not know how much value added they do, but I bet it is alot. I bet their investment is huge. One of the problems in Agriculture is that we produce a base input for the rest of the chain to add value to. We do not own that chain, so it pisses us off to see the profits created on our input. The typical bread value vs wheat arguement has been ongoing for years. Food values have not dropped because in many cases, the value of the wheat in bread, for example, is such a small part of the total value or expense to produce the bread. Try getting 4 bowls out tomorrow AM and fill them with wheat and pass them to your kids and wife. Will anybody eat that? No of course not, it is not a consumer product. I agree that the farmer's share of the consumer produce is dropping, but we consume more and more processed products all the time. Look at the change in your own household over the last 20 years.

My hat is off to those that are attempting to add value to their own farm products. It is not a easy venture, labour/intelligence is tough to hire, banks are not easy to deal with, technology is propreitary and big research and investment of business dollars are required. And consumer interests are fickle. They have to make big bets for their returns, outguessing what the market wants in 3-5 years. Even something as small as packaging and labelling is incredibly expensive. Grass is not likely greener on the other side. I would love to hear some comments from someone that has done some secondary food processing. Not easy stuff.

Bottom line, is that Saskfarmer believes that he almost had control of the global grain markets (but amazingly in the next breath states that the CWB can not influence control globally), if there had been one more good year. I say that is a pipe dream, as supply and demand will always win out. That is what happens in free markets. If you love them when prices are high, you still have to love them when prices come off. The alternative has been (CWB) killing Western CDN Ag for years. How would your marketing have been differnet if you had open markets on wheat/durum this year?? The idea that COnAgra had a good year becuase their input costs came down might have some similar impact as 2007 crop did on our farms when we grew a high value crop on cheaper inputs. DO not get me wrong, i do not want to see cheap inputs and cheap grain, but I am realistic that both will move around and it is life. Need to make the best possible decisions with what we have control in.

[cottonpicken]

Sorry davy supply and demand are not the major factors for the price of things.

[dave4441]

How is "sit tight be all right working for you"?

[SASKFARMER3]

Hey da?e I am stuck so have time to repy. Man you don't get it. Our prices are in tank we were sold a line of BS for way to long. Today Cargil is phoning for me to supply peas to them cause farmers did not deliver more off combine so their short some 40 cars. HM genius when we want we are in control. As for value added that was preached how are your neghbors that bought into that doing oh their gone richie brothers was their last spring.the livestock and hog guys giver and bought into the ideads of intelectuals like yourself then when the ship hit the fan the govt and the guysd that pushed these guys baled on them. Small value added had same problem. The big companes are scared when farmers have cash and can wait. It creates a different game. Simply when farmers have cash they are in control. And on the CWB we loose because of low cash to farmers. The price for all other products drop because only game out their. And for not hitting top prices talk to my accountant and rev canada. Now canadians get screwed on products they buy most times us producers pay way less for fert chem and bins plus equipment hell on a new fith wheel I bouight the price is 18000 cheaper in US than canada. So dave I have no problem with profit its the statement we purchased our ingrediants cheaper and still gouged the cosumer so all is well.

[dave4441]

So what is your increase in value becuase Cargill is "short" peas at your location?

[dave4441]

As for saving $18000 on a fifth wheel that is complete BS. I follow those prices, there is advantages to buying in US at certain times, but to say you saved $18000 you would have to be talking about MSRP in Canada on a 35 foot and cash deal in US on a 25 foot.

[jensend]

are you stuck in your own tears?

[SASKFARMER3]

Dave its gouging you dufdus that I hate with a passion. Its a 40 ft and yes cash vs cash no finance Delivered to farm ND vs 3 hrs north or 1 hour out of city. all canadian dollars taxes figured in so dave read a little and check insteady of firing back with little substance or facts gouging doesent work and cash is king.

[JDGreen]

LMAO.. And I was called an idiot by family and friends for locking up profits in may and june..... At any rate I will side with SF3 here in regards to the fifth wheel.. Way less money south of border cash for cash.

[cottonpicken]

Dont worry about me dave.

http://charts3.barchart.com/chart.asp?vol=Y&jav=adv&grid=Y&divd=Y&org=stk&sym= MWZ9&data=H&code=BSTK&evnt=adv

I'll be ok.

[Zaphod]

I bet the plastic, steel and aluminum suppliers are complaining about getting screwed by the 5th wheel maker who sold it at an exorbitant price to SF3. But wait, he bought it for as little as he could, just like the jerks in India are trying to do with our peas. Hmm, kind of ironic no?

[SASKFARMER3]

Zapper I paid fair price for product I didn't steal it. India would sacrifice their own people to try steal our peas and as I am trying to show people like you and dave believe everything the dealers, chem, fert monsantos bayers tell you. You say I am the bad guy for questioning them and not believing that they know everything. But keep believing and one day maybe they will have you guys on their payroll or by your comments on always supporting them you are.