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CWB Tendering Policy

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    CWB Tendering Policy

    Some discussion in other threads but I thought worthy of its own area.

    What are peoples thoughts about the change in CWB policy from 50 % tendered board back to 20 %?

    Alberta government expressed its opinion in the following press release.

    http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/com7391?opendocument

    Your thoughts?

    #2
    I think it was a step backwards by the wheat board to scale back their tendering process. The excuse was that it would make things fairer for all the terminals and then they would compete more vigourously for the grain in the form of producer incentives. In our area the reverse has happened last year we got all the trucking paid on our milling wheat but this year it is only a portion of the trucking. I am not impressed!!!!!!

    Comment


      #3
      Charlie;

      Is 50% tendering better than 20% tendering? I don't know the answer. I thought the tendering process as it was functioning in practice was not offering the desired benefits as advertised. It certainly had little resemblance to what Estey had envisioned. Freight and handling charges were continuing to creep upwards yet the level of service offered by the system has continued to erode.

      But what disturbs me most, is how the Board can unilaterally change the terms and conditions of an agreement they had made with Minister Goodale and Goodale couldn't seem to care less.

      It's as if Estey/Kroeger never happened.

      So the Board signs an agreement with the feds and two years later breaks it. What other agreements do they not honour? Do they break contracts with customers or farmers? What will the rules be next year? And the year after that?

      Who knows what the rules will be, but what we do know is that the Board sees nothing wrong with breaking deals and breaking it's agreements.

      Partners like that I do not need.

      Comment


        #4
        Charlie;

        I am somewhat in the same boat as Adamsmith...

        I see the tendering profits going to the pool accounts as somewhat negative... those who did the most work in providing the best product, as needed, when needed, should have been returned the rewards, NOT the Pool accounts.

        But the CWB's choice this year was to take the efficiencies away from everyone who could create them, so no-one now gets the gained commercial efficencies and benefits, which is even worse.

        IMHO Reduced service and higher cost is the result, not what we were looking for, in any event, especially when I have invested in a new high throughput elevator system!!!

        Comment


          #5
          "It's as if Estey/Kroeger never happened."

          And the Western Grain Marketing Panel never happened either.

          R.E.G. only believes in consensus if it satisfies his or his governments beliefs.

          Comment


            #6
            I hope that it works more to our benefit now. With the old system of tendering, the large terminals got all the grain cars, so therefore, they had all the space. We could not haul to the company or elevator of our choice if we needed to move product quickly. Also, I think all those savings that the tendering system were supposedly reaping went directly to trucking so we could get our product to the nearest terminal that could "compete" in the tendering process. Hard on roads, equipment, and time.

            I don't agree with the pooling system, but from our standpoint out in the boonies, the tendering system as it was gave us NO benefit.

            As an example. In our area we had to have the crop year delivery period extended so we could deliver to our chosen point. This in a year of record low crop production!!

            If we have to load our crop on to a commercial truck to get it to a terminal, it will stay on that truck and go west to take advantage of freight rate reductions..... tendering or not.

            Comment


              #7
              achiliak

              I have no problem with you shipping from the north pole... IF you are willing to pay the increased cost of getting the service you wish to your community.

              Now that I have invested major cash to increase my elevator's efficiency, ... for you to require me to cross subsidise your shipments, is not fair... IS IT?

              Comment


                #8
                Charlie,
                did you say this was a grain tendering thread or RHETORIC: 101. Come on you guys, how can you question giving a dozen different players an equal shot at your grain versus two grain bullies that are spending their shareholders grandchildrens future,is less competitive. Is this the time to be seen paroting the views of head- office propaganda, filtered down to the local non-boards.
                It wouldn't be so bad if there were farmer directed companies here when we get to the final conclusion. But I'll bet you dollars to doughnuts there isn't one of them that is still farmer held ten years hence. And Tom 4cwb, did they build a farmer terminal in Alberta or did you move east. (What's with invested major cash....)?

                Comment


                  #9
                  boone,

                  If the shareholders of the "bullies" believe that their company's are fritering away their grandchildrens future, those shareholders are free to sell their shares and divorce themselves from foolish decisions.

                  But what I hear you saying is that you don't have a problem with a transportation system designed to choose favorites, you just want to see a different set of favorites.

                  But isn't that how are system functions?

                  Instead of free and equal opportunity being the foundation for our grain marketing/handling and transportation system, the foundation is built on special treatment and favorites.

                  No wonder it's such a polarized industry.

                  Comment


                    #10
                    Just a note to highlight website that might serve to help this discussion.

                    http://www.quorumcorp.net

                    Just an interesting note is that I had an interesting discussion with this group regarding a net product they are working on - a farm netback calculator that works off the internet - takes an elevator CWB payment at various elevators near your farm (including grade promotions) and converts to your farm gate price.

                    Comment


                      #11
                      Adam Smith
                      Generally you would be right, except in this case where most of the shareholders are non participatory, the farmers that still hold these companies are refered to as non- sophisticated investors, derisive or apt I won't decide. I would consider it deer in the head lights. And until the gentleman from Dominion Bond rating has something to say the sophisticated (now that's derisive) don't ask about what they can't understand. They do understand if your riding a dark horse and, up to your neck in debt, it is best to give the him his head and see if self preservation will take him through the mud hole. Ergo buy market share and throw mud on the rest of the herd that had the sense to go around. Giddyup!

                      Comment

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