Dear Charlie et al:
The CWB cannot match US export prices...
Because
Customers/Folks in the international community PAY a premium in a market that is non-political, honest, and has dependable growers/suppliers with integrity who have/will supply that market at a fair transparent value.
CWB grain sales offers; can not match the integrity of the US marketing system. The CWB depend on the CWB 'Designated Area' slave market in western Canada to supply their customers in the international community!
Why should anyone pay a premium for our slavery grown Wheat/Durum/Barley products... with a master who claims they rip off these same customers/folks who buy this slave grown/traded grain!!!
Canadian Canola does meet these these higher US standards... and we do get a premium for Canola.
Why do grain growers in western Canada walk around with blinders... and still not get it... THE CWB system ITSELF devalues our wheat/durum/barley???
THE CWB could be different... but they have chosen to be dishonest with virtually everyone.
I am TOM4CWB. A CWB that finally is honest and stops spinning everything it says...
AS in the end our present CWB only serves to extract premiums FROM growers and gets less for their grain!!!
THE CWB is BACKWARDS!!!!
Background:
"1. The World’s Most Reliable Choice – Part 1
The reliability of U.S. wheat supplies makes a positive difference for wheat buyers around the world and U.S. Wheat Associates (USW) has often noted that the U.S. wheat store is always open. Today, market circumstances again clearly reflect the value of reliability.
This is the first in a two-part series that examines why we claim to be the world’s most reliable source of high quality milling wheat – and why this reliability is so valuable to buyers.
· The U.S. Wheat Store is Always Open. On average, about 50 percent of the annual U.S. wheat harvest is available to supply our export markets. Farmers and commercial warehouses can store and maintain wheat in top condition until the market needs those supplies.
· Open Market. In 2007/08, another period of price volatility and export restrictions by other suppliers, former Secretary of Agriculture Ed Schafer wrote, “Please be assured that curtailing exports is not a viable response to tight domestic markets. We believe that markets function best without government interference, especially during these volatile times. Shutting down exports would override normal market signals, creating greater market uncertainty.”
Restraining exportable wheat and other food supplies with little consideration for market economics unnecessarily increases world prices and sends false market price signals to everyone involved. Importers and the world’s consumers all suffer as a result, while producers see reduced incentives to produce the crops the world needs. That is why customers should consider the value of reliability in contrast to these steps by other origins to restrict supplies:
· Export Bans. Governments of some countries, such as Russia, Ukraine and Kazakhstan, have implemented export bans on various grains. These actions have resulted in contractual prohibition, the outright cancellation of existing export contracts without recourse and the blockage of any new sales. This leaves importers with no ability to recover their purchases at agreed upon prices, often resulting in much higher replacement costs.
- Russia has issued two bans in the past 15 years, including five months in 1999 and another ban in 2010 that now extends at least through the 2011 harvest period. Many world buyers in 2010 had to replace Russian wheat at prices of $100/MT over the original purchase price.
- Ukraine banned wheat exports in March 2007 for an eight-month period.
- Kazakhstan banned wheat exports in April 2008 for five months.
· Export Licenses. Countries that utilize licenses, such as Argentina, can stop issuing the licenses or change the validity period of these licenses with little notice. China and Ukraine have used licensing systems in the past as well.
- Argentina stopped issuing licenses in March 2007, re-opened issuances in November 2007 and stopped the practice again in December 2007. The government again issued licenses in January 2008 and stopped the practice in February 2008. This stop-and-go licensing practice brings supply reliability into question. In addition, the government reduced registration periods for exports from 365 days to 45 days.
- China stopped issuing export quotas for wheat in 2007.
- Ukraine has implemented an on-and-off-again licensing system to control wheat exports; reports indicate that extra customs and documentary checks following the 2010 harvest were unofficially blocking exports and officials ultimately implemented an export quota in 2010.
· Export Taxes. Several countries, including Russia, Kazakhstan, China and Argentina, have used export taxes in recent years to control exports, which result in higher prices to consumers. Meanwhile, the U.S. Constitution prohibits implementing export taxes on U.S. grains.
- Argentina increased its export tax from 20 percent to 28 percent in November 2007. The government then issued a variable tax in March 2008 that had the potential to increase taxes to 46 percent. When the variable tax structure ended, export taxes were set at 23 percent.
- Russia has used export tariffs off and on for several years to decrease export flows, increase domestic supplies and lower domestic prices.
- Kazakhstan implemented a tax scheme in March 2008.
- China also issued export tariffs ranging from 5 percent to 25 percent in January 2008 on certain grains.
· Export State Trading Enterprises (STE). Export STEs, such as the Canadian Wheat Board (CWB), manipulate prices and can simply choose not to offer wheat to some customers as they did in 2007/08.
In the next issue, we will discuss how export restrictions increase risk for the world’s wheat buyers."
The CWB cannot match US export prices...
Because
Customers/Folks in the international community PAY a premium in a market that is non-political, honest, and has dependable growers/suppliers with integrity who have/will supply that market at a fair transparent value.
CWB grain sales offers; can not match the integrity of the US marketing system. The CWB depend on the CWB 'Designated Area' slave market in western Canada to supply their customers in the international community!
Why should anyone pay a premium for our slavery grown Wheat/Durum/Barley products... with a master who claims they rip off these same customers/folks who buy this slave grown/traded grain!!!
Canadian Canola does meet these these higher US standards... and we do get a premium for Canola.
Why do grain growers in western Canada walk around with blinders... and still not get it... THE CWB system ITSELF devalues our wheat/durum/barley???
THE CWB could be different... but they have chosen to be dishonest with virtually everyone.
I am TOM4CWB. A CWB that finally is honest and stops spinning everything it says...
AS in the end our present CWB only serves to extract premiums FROM growers and gets less for their grain!!!
THE CWB is BACKWARDS!!!!
Background:
"1. The World’s Most Reliable Choice – Part 1
The reliability of U.S. wheat supplies makes a positive difference for wheat buyers around the world and U.S. Wheat Associates (USW) has often noted that the U.S. wheat store is always open. Today, market circumstances again clearly reflect the value of reliability.
This is the first in a two-part series that examines why we claim to be the world’s most reliable source of high quality milling wheat – and why this reliability is so valuable to buyers.
· The U.S. Wheat Store is Always Open. On average, about 50 percent of the annual U.S. wheat harvest is available to supply our export markets. Farmers and commercial warehouses can store and maintain wheat in top condition until the market needs those supplies.
· Open Market. In 2007/08, another period of price volatility and export restrictions by other suppliers, former Secretary of Agriculture Ed Schafer wrote, “Please be assured that curtailing exports is not a viable response to tight domestic markets. We believe that markets function best without government interference, especially during these volatile times. Shutting down exports would override normal market signals, creating greater market uncertainty.”
Restraining exportable wheat and other food supplies with little consideration for market economics unnecessarily increases world prices and sends false market price signals to everyone involved. Importers and the world’s consumers all suffer as a result, while producers see reduced incentives to produce the crops the world needs. That is why customers should consider the value of reliability in contrast to these steps by other origins to restrict supplies:
· Export Bans. Governments of some countries, such as Russia, Ukraine and Kazakhstan, have implemented export bans on various grains. These actions have resulted in contractual prohibition, the outright cancellation of existing export contracts without recourse and the blockage of any new sales. This leaves importers with no ability to recover their purchases at agreed upon prices, often resulting in much higher replacement costs.
- Russia has issued two bans in the past 15 years, including five months in 1999 and another ban in 2010 that now extends at least through the 2011 harvest period. Many world buyers in 2010 had to replace Russian wheat at prices of $100/MT over the original purchase price.
- Ukraine banned wheat exports in March 2007 for an eight-month period.
- Kazakhstan banned wheat exports in April 2008 for five months.
· Export Licenses. Countries that utilize licenses, such as Argentina, can stop issuing the licenses or change the validity period of these licenses with little notice. China and Ukraine have used licensing systems in the past as well.
- Argentina stopped issuing licenses in March 2007, re-opened issuances in November 2007 and stopped the practice again in December 2007. The government again issued licenses in January 2008 and stopped the practice in February 2008. This stop-and-go licensing practice brings supply reliability into question. In addition, the government reduced registration periods for exports from 365 days to 45 days.
- China stopped issuing export quotas for wheat in 2007.
- Ukraine has implemented an on-and-off-again licensing system to control wheat exports; reports indicate that extra customs and documentary checks following the 2010 harvest were unofficially blocking exports and officials ultimately implemented an export quota in 2010.
· Export Taxes. Several countries, including Russia, Kazakhstan, China and Argentina, have used export taxes in recent years to control exports, which result in higher prices to consumers. Meanwhile, the U.S. Constitution prohibits implementing export taxes on U.S. grains.
- Argentina increased its export tax from 20 percent to 28 percent in November 2007. The government then issued a variable tax in March 2008 that had the potential to increase taxes to 46 percent. When the variable tax structure ended, export taxes were set at 23 percent.
- Russia has used export tariffs off and on for several years to decrease export flows, increase domestic supplies and lower domestic prices.
- Kazakhstan implemented a tax scheme in March 2008.
- China also issued export tariffs ranging from 5 percent to 25 percent in January 2008 on certain grains.
· Export State Trading Enterprises (STE). Export STEs, such as the Canadian Wheat Board (CWB), manipulate prices and can simply choose not to offer wheat to some customers as they did in 2007/08.
In the next issue, we will discuss how export restrictions increase risk for the world’s wheat buyers."
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