This idea was floated before our wheat market deregulated. It was idea but didnt get up but i will run it past oyu as i best remember. ps maybe long sorry to bore you.
In the new single desk model,grain trading companies are the ones who accept grain deliveries from growers not the single desk operator.
The companies then transfer grain to the single desk for sales overseas.
The single desk operates a wholesale pool for trader and traders offer growers a retail pool.
Competition
occurs between trader operating pools with different fees and hegeing mechanisms to enhance grower returns. CWB,Cagills Vitterra LDreyfus who ever operate the pools.
The single desk operator can be a govt operated and over seen by extraders who ever but there job is to sell the wheat under a single desk banner for best return possible no comapnies taken out bits and pieces, that occurs in the retail pools and if one retail pool operator doesnt perform for whatever reason people walk away from them the next harvest.
The companies that participate are paid by the wholesale pool operator,in proportion to the amount of equity they have in the wheat which they have delivered to the pool.
Companies delivering to the wholesale pool can offer cash prices if they wish as they have pooled grain as collateral.
Not sure if that makes sense to you guys it did here in australia but it never got up, for varying reasons but it got serious consideration.
One problem was amount of wheat being exported in container thats been deregulated here since about 2001 i think so if people wanted to circumvent the wholesale pool and export on the tere own they would have done so in boxes.Plus the other reason was barley was fully deregulated in some states and was working ok so it was another negative for the above scenario.
They tried and tried to get a single desk system that could keep everyone happy but in the end it was all to hard, but maybe you guys can find middle ground.
Thoughts from single desk supporters and non supporters welcome,if you cant get mind around it im happy to complicate the model....with further comments
In the new single desk model,grain trading companies are the ones who accept grain deliveries from growers not the single desk operator.
The companies then transfer grain to the single desk for sales overseas.
The single desk operates a wholesale pool for trader and traders offer growers a retail pool.
Competition
occurs between trader operating pools with different fees and hegeing mechanisms to enhance grower returns. CWB,Cagills Vitterra LDreyfus who ever operate the pools.
The single desk operator can be a govt operated and over seen by extraders who ever but there job is to sell the wheat under a single desk banner for best return possible no comapnies taken out bits and pieces, that occurs in the retail pools and if one retail pool operator doesnt perform for whatever reason people walk away from them the next harvest.
The companies that participate are paid by the wholesale pool operator,in proportion to the amount of equity they have in the wheat which they have delivered to the pool.
Companies delivering to the wholesale pool can offer cash prices if they wish as they have pooled grain as collateral.
Not sure if that makes sense to you guys it did here in australia but it never got up, for varying reasons but it got serious consideration.
One problem was amount of wheat being exported in container thats been deregulated here since about 2001 i think so if people wanted to circumvent the wholesale pool and export on the tere own they would have done so in boxes.Plus the other reason was barley was fully deregulated in some states and was working ok so it was another negative for the above scenario.
They tried and tried to get a single desk system that could keep everyone happy but in the end it was all to hard, but maybe you guys can find middle ground.
Thoughts from single desk supporters and non supporters welcome,if you cant get mind around it im happy to complicate the model....with further comments
Comment