CPR shuttle trains

[TOM4CWB]

Charlie;

I see the railway alliance CPR UP are creating new arbitage in our markets for feed grains... for the PNW and Southern AB feed consumers...
http://www.grandforks.com/mld/agweek/4491447.htm

[charliep]

Grain is something like. Water flows from high places to low (unless it is prevented by a dam). Grain flows from low prices to high with arbitrage/transportation making it happen.

[TOM4CWB]

Charlie;

This is why the CWB "single desk" premium extracting power defies economic and political reality...

The world can and will produce wheat products without CWB supplies this year... for the largest part.

We are back to square one in rebuilding market share... the CWB's "monopoly" cannot force anyone anywhere to pay more than what our wheat or barley is actually worth!

[ianben]

I asked earlier,
Can a sale be a premium.

This is how we were sold identity preserved.

The fact that our grain was id preserved would give us a same price sale instead of no sale at this level.

Is part of CWB premium number of tonnes sold?

[TOM4CWB]

Ianben;

THE point is still the same...

If the CWB is IP selling grain... the costs of IP are still paid by those farmers producing this grain... the premium is paid because of services rendered... NOT THE MONOPOLY.

WE must remember that the CWB system is a cost plus system... risk is placed squarely to the farmers account... premiums earned are not extracted but paid because of the service provided the buyer of our products.

In a highly commpetitive international market place... there are no "gifts" to anyone... as I am sure you are all too aware of yourself!

[ianben]

The point I was trying to make was that I incured extra cost with IP but sold at same price in order to make a sale.

I sold xtonnes. My competitor sold none.

Did I gain a premium?