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Alberta, Saskatchewan and BC governments support marketing change at CWB....

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    Alberta, Saskatchewan and BC governments support marketing change at CWB....

    Some more political chess moves.


    Prairie farmers welcome BC, AB, and SK governments support for marketing change at the CWB
    REGINA, July 8, 2011 /CNW/ - The Canadian Federation of Independent Business (CFIB) welcomes the Alberta, Saskatchewan and British Columbia government's support for marketing change at the Canadian Wheat Board (CWB).

    Today, the Agriculture Ministers from the three Western provinces welcomed the Government of Canada's plan to give producers marketing choice for wheat, durum and barley. Ministers committed their support for marketing choice at the Annual Federal-Provincial-Territorial Agriculture Ministers meeting, where ministers gathered to discuss how to better work together to help farmers grow the agriculture industry and continue to drive the Canadian economy.

    Earlier this spring, CFIB released its Prairie farm members' views on the CWB in a research report, Time for a New Vision at the CWB. "It is evident growers need more consistent, timely, accessible and transparent marketing signals in order to make the best possible marketing decisions for their own farm," said Virginia Labbie, CFIB's senior policy analyst for Agri-business. "Farmers who want the opportunity to market their own wheat and barley are obviously hobbled by the current single desk system."

    "The message from farmers is that the CWB is not currently meeting producers' evolving needs," added Labbie. "In fact, 83 per cent of CFIB's farm members in Western Canada said they want the option to market their wheat and barley outside of the CWB. A Prairie farmer said it best, "It is time the Canadian Wheat Board lets us farmers choose who and how we want our own grain sold."

    "Let's be clear - our farm members have never advocated for the complete dismantling of the CWB. In fact, 59 per cent say it is very or somewhat important for the CWB to remain a marketing option if marketing alternatives to the CWB are introduced," stated Labbie.

    When asked what the main benefits would be to their farm business if they were given the option to sell their wheat and barley in the open market, CFIB farm members indicated they would have access to better marketing signals, greater opportunities to niche market their product, greater control of the profitability of their farm business, and growth in the value-added industry.

    As Federal, Provincial, and Territorial Agriculture Ministers conclude their discussions this week on Growing Forward 2 (GF2), CFIB is calling on all governments to ensure GF2 drives productivity and innovation in the agricultural sector. "Some of the key themes of Growing Forward 2 are centered around competitiveness, market growth and innovation," noted Labbie. "If we are serious about driving innovation in the farm sector, it is time to let farmers market their own wheat and barley just as they do with their pulses and oilseeds."

    "We're pleased the Federal government is delivering on its important commitment to bring marketing change to Western Canadian farmers," concluded Labbie. "We are disappointed with the government of Manitoba's desire to maintain the status quo at the CWB. It is time to move on."

    CFIB is the business voice for agriculture, representing 7,200 independently owned and operated agri-businesses in Canada (2,500 in Western Canada), the majority of which are primary producers.

    #2
    Yes, and when the CWB asks for "regulated" access to privately owned elevators our Ag Minister Ritz stammers and stutters and says that it probably wouldn't be enforceable.

    This means that when the compulsory aspect of the CWB is ended the CWB will be "tossed to the wolves" with no place to do business,

    This is maybe what farmers didn't want to see happen but in effect the CWB is being DUMPED, pushed from the plane without a parachute, deep sixed, trashed, and eliminated once and for all.

    I believe that this WAS the intention all along or the Conservative government would have had a workable transition plan in place BEFORE they announced their plans for eliminating the compulsory aspect of the CWB.

    Those who say that the CWB should be able to work in parallel to the private sector have no idea of the logistics involved. The government does but they are chickening out and are going to watch the CWB go down in flames. Not a very responsible position in my opinion.

    Comment


      #3
      The CWB will get its just reward. I have about as much respect for this useless organization as it did for me. I sincerely hope it fails!

      Comment


        #4
        The only ones being irresponsible here are the mono directors who refuse to roll up their sleeves and get to work. Its no longer good enough to collect a paycheck just for beating ones chest and crying "the single desk forever". Its time for them to think about actually selling grain instead of uber-socialist ideology.

        Comment


          #5
          Wilagro

          You mention CWB regulated access to elevators. Just curious what this would look like. Based on contracted volumes? A percentage of handle?

          Will note the CWB has handling agreements today with all the major grain companies which I assume are commercial in nature. Why couldn't the CWB continue to negotiate handling agreements?

          Comment


            #6
            Wilagro,

            No elevator in Canada now is required to give CWB grain spece or do business with the CWB itself.

            As Charlie correctly stated... it is all done by contract voluntarily. If I do not apply to handle CWB grain... I cannot buy CWB grain. Even to the point that I cannot buy my own grain back from the CWB... unless I do it through a licensed agent of the CWB.

            The more you proboard 'single desk' folks go... the better this gets!

            Thanks for proving our point Wilagro... the CWB is here NOW to benefit the multi-national grain co's (the CWB respects their property rights)... at the expense of commercial grain growers (through confiscation without permission of our grain)!

            Comment


              #7
              wilagro asked practical question - how will the CWB have access to the
              commercial elevator system for farmers who choose to use their services.
              Once an issue has been identified, then members of supply chain (some
              element of farmers but mainly the CWB/grain companies via WGEA) can
              come up with practical solutions. These solutions can be turned into
              recommendations commercial contracts and/or
              recommendations/regulatory actions.

              Hopefully members of the supply chain are having these practical
              discussions and are presenting these ideas to the federal government.

              The CWB needed the Act to be opened up at some point in time. Issues
              around setting initial payments, developing a bigger contingency fund for
              the eventual loss of government guarantees, clearer definition of investment
              in outside/commercial activities, etc.

              Even in the current, the CWB has taken steps to be more competitive when
              required. Multiple pricing pools for barley, cash plus for malt barley, cash
              pricing for feed barley, 200 % EPV for feed wheat, guaranteed delivery
              contracts, tendering with grain companies, etc. etc., etc.. They have
              experience in doing things differently in cooperation with grain companies
              and accreditted exporters on a commercial basis.

              Comment


                #8
                Tom4CWB: Here is an excerpt from an article from today's Edmonton Journal. Judge for your self.
                ==
                Wheat board wants access to elevators if it loses monopoly

                Federal agriculture minister questions whether regulated right to use of storage and handling would be enforceable

                By Journal Business Staff, edmontonjournal.com July 8, 2011

                EDMONTON - Canada is considering a request by the Canadian Wheat Board for regulated access to private grain handlers once the board loses its monopoly, federal Agriculture Minister Gerry Ritz said Friday.
                But he added that such access may not be enforceable.
                The Conservative government plans to pass legislation this fall to scrap the world’s last major agricultural monopoly as of August 2012.
                The Wheat Board, which has no grain-handling and storage facilities or retained earnings, has asked Ottawa to give it regulated access at favourable rates and times to private handlers and capital, if it tries to compete in the open market.
                “We’re looking at all avenues moving forward. Certainly that is on the table,” Ritz said in a conference call with reporters.
                “But these are private-sector companies that offer services. I’m not sure that regulation could be enforceable, but we’ll take a look at all ideas that come forward.”
                Ottawa will likely come under intense pressure from private grain handlers not to impose new regulations and it’s unlikely to mesh with the Conservative government’s aim to open markets.
                Western Canada’s biggest grain handlers are Viterra Inc., Richardson International Limited and Cargill Inc. Grain handlers have said they would work with the Wheat Board even in a competitive marketing system, but the CWB has expressed doubts.
                Meanwhile, three of Canada’s four western agriculture ministers applauded the federal government’s intention to end the CWB’s marketing monopoly at a national meeting Thursday in St. Andrews, N.B.
                “Marketing opportunities are being lost every day and it’s vital that Alberta’s grain producers be able to market their product to anyone they choose,” said Alberta Agriculture and Rural Development Minister Jack Hayden in a statement.
                “We encourage the CWB and all parties to move forward and work constructively to facilitate the transition to an open market so that every farmer has marketing freedom.”
                The ministers from British Columbia and Saskatchewan had a similar message, but Manitoba opposes the move.
                The Western Barley Growers Association issued a statement supporting the move “to give producers marketing freedom for wheat, durum and barley.”
                Said WBGA president Brian Otto: “In light of the campaign by the Manitoba provincial government to oppose these changes it is gratifying to see the western provinces, representing the largest production in the Canadian Wheat Board (CWB) designated area, backing an open market to allow farmers the freedom to sell their own grain.”
                With files from Postmedia News
                dcooper@edmontonjournal.com
                © Copyright (c) The Edmonton Journal

                Comment


                  #9
                  Wilagro,

                  WHAT does that article prove... except that the CWB may try to continue the 'single desk' confiscation plan... on to elevator companies... if they could get that out of Minister Ritz.

                  So WHAT! THe CWB's Oberg will try anything... to cherry pick and try to get a free ride.

                  WHAT does this prove Wilagro...

                  other than this (CWB 'idea') is NOT a comprehensive commercial handling agreement they are negotiating...

                  but a fairy tale story book dream idea of again NOT BEING RESPONSIBLE for the actions they plan to take.

                  I say thumbs down to a forced handling agreement... it is no better than the 'single buying desk' the CWB has on growers now!

                  Comment


                    #10
                    So if you have to force somebody to do business with you, you are either an asshat, or you shouldn't be in business in the first place.

                    Or all of the above.

                    Comment

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