Malt vs Feed

[wd9]

Any speculation whether should sell malt as feed or as malt? Simple feed contracts are pretty decent but how is the malt crop this year?

[Fransisco]

When the editorial board of the main newspaper in Winnipeg comes out in favour of marketing freedom that is a big deal indeed.

Way to go Free Press!!

[Fransisco]

<b>CWB plebiscite less than it seems</b>

By: Sid Green

Posted: 09/15/2011 3:17 AM


When I was a student at the University of Manitoba, most us got to the Fort Garry campus by public transit. At the time the transit company was privately owned by the Winnipeg Electric Company and there was an ongoing battle between the students and the company related to the level of services.

The student newspaper, The Manitoban, published a sarcastic article wherein it was stated the transit company was complaining of vandalism by students who damaged the seats of the vehicles.

The authority said it intended to retaliate by removing the seats from the university-bound buses. In order to demonstrate its good faith, the company said it would conduct a plebiscite among the students, giving them the opportunity to voice their opinion before it took any action.

The announcement then ended with the statement: "The plebiscite will be taken, the results will be announced, and the seats will be removed."

Supporters of the Canadian Wheat Board are now accusing the federal government of acting in a similarly arbitrary and undemocratic manner by ignoring the Canadian Wheat Board-sponsored plebiscite that polled farmer opinion on the continued monopoly position of the board with respect to the marketing of wheat and barley in the Prairie provinces.

The plebiscite has been held, the results have been announced, and the monopoly position of the board will be terminated. This despite 62 per cent of the voters supporting the board with respect to wheat and 51 per cent supporting the monopoly with respect to barley.

But before we jump to the conclusion of making inappropriate analogies, some consideration should be given to important features of this case that make such comparisons meaningless.

First, the Canadian Wheat Board used its resources to advance a political position, which it had no mandate to do. The wheat board is responsible for the marketing of grain and should not be involved in the question of whether it should continue to have the legislative powers, which come from the government of the country. The government created the wheat board and whether it will continue is a political decision. As the saying goes: "The legislature giveth, and the legislature taketh away."

In addition, what is being voted on is whether the majority of a group of farmers can decide that the freedom of those who disagree with them can be removed.

It is probably correct to say, as the wheat board will argue, that unless there is a single desk to which all farmers are required to market their grain, the effectiveness of the CWB will be reduced and it might even be forced out of business. But is this reason enough to deny a freedom to which most Canadians are entitled as of right?

The true magnitude of the vote should also be assessed. Only 55 per cent of those eligible cast their ballots. That means only 34 per cent of eligible farmers voted in favour of a wheat monopoly and about 26 per cent in favour of a barley monopoly.

Since many people who would have voted negatively knew the government was going to legislate, it is likely they saw no need to cast a ballot in what had been described as a useless gesture.

Should 34 per cent and 26 per cent respectively have the right to say that 100 per cent will be denied the right to operate as do their fellow Canadians in Ontario and Quebec, who are not subject to wheat board control?

Then again, the vote was only open to those who have been engaged in the marketing of wheat and barley. It is reasonable to assume that some farmers gave up these crops because they didn't want to subjected to wheat board control.

As Lenin said of the Russian soldiers who deserted the front in the First World War: "They voted with their feet." If those votes were counted, it could well turn out that a small minority of the relevant farmers actually prefer to be subjected to a controlled rather than a free market.


Sidney Green is a Winnipeg lawyer and former NDP cabinet minister.


Republished from the Winnipeg Free Press print edition September 15, 2011 A10

[Fransisco]

From a former NDP cabinet minister no less!

Well, well, well, there are some folks on the left who can still think.

[charliep]

At 25 to 30 % harvested, not a good handle on selectibility this years barley crop (will look for help from Agriville participants who have crop in the bin).

Is anyone hearing cashplus offers? A birdie tells me cash plus will be limited as a mechanism to protect malt barley pool returns. Your spread between malt barley and feed (domestic and export) is wide and likely to narrow. Yes problems Europe. Argentina looking good. The Aussie story is yet to be told but will be an aggressive seller if they get quality.

Would go for malt selection but push hard on the domestic malt/exporter for an front offer using cash plus. Go political on the CWB side as well. I note the comment from the CWB press conference on the 51 49 barley split was more barley programs (feed and malt). Perhaps that would start with more clarity and better use of existing programs. There should be malt barley cash programs available every day with a visible price.

Off my soap box. Sorry.

[charliep]

wd9

Barley to date has been quality and selectible. Much better year than 2010 but only 70 ish percent harvested. Will be 50 % quick if weather hangs on.

A frustration is the grey area between politics and commercial needs in 1011/12. Will the CWB play around with the size of the 2011/12 pricing pool to manipulate final payments? Is money being transferred out to pay for the current single desk compaign or to top up the contingency fund? What is happening with the relationship between farmers sales representatives (grain companies and the CWB) and potential export buyers? Maltsters? Domestic brewers?

The simplicity of moving to a system of a simple price signal that farmers can react to and make decisions around delivery commitments is something that should start in 2011/12. The CWB has the tools to do this. Have the B. of D. step down their political rhetoric (or at least differentiate barley from wheat in what they say) and allow the operations side to use existing programs with more clarity and clearer price signals.

[redbaron]

I wonder how MP Pat Martin"s blood pressure is after
reading this article. Despite Sid Green's party
affiliation. He has always been a great debater and a
man that can see the issues. To bad others have such
a problem.

[wd9]

God, its so complex, is there any wonder a dumb farmer like me other then using a dart board can make some business like marketing decisions?

[mbratrud]

Great Artilcle

[charliep]

I suspect you make complex business decisions everyday based on information. What is needed for your question is better information and something you can actually do with the information.

For what it is worth, the current PRO is $6/bu ish (2 row malt). Can the CWB protect this?Depends on their decisions over the next few months. Cash plus should be in the $5.75 to $6/bu area - same as this spring/summer. A 2 row malt barley EPO costs $1.20/bu - ouch.

Feed barley PRO is about $4.10/bu (Alberta) - competitive to higher than the alberta domestic market. The CWB does limited business this way and all the feed barley payment/cash programs are hush hush/need to know. All the tag along single desk supporters should be signing "A" series contracts. Grain coming up the drive way is the real vote on barley.

[parsley]

Axiom: ""I'll believe it when I see it"

Eyes: Blink. Blink

Cerebral Awareness: Pinch myself.

Winnipeg is 180'ing?

Wow.

Which province do we plan the party? Pallister's quonset? Pars

[SASKFARMER3]

Took Sample to Canada malt and hauled in on Mon and Tuesday. They took all We had every single bushel. HM.

[charliep]

Did you leave in the malt barley pricing pool or use a cash plus? Just curious.

[Burbert]

ALWAYS, ALWAYS, ALWAYS, go fer malt, each
and every year. The kid (who once spent a
summer helping on his uncles grain farm in
Sask), who is now grading your grain can
always turn it inta feed, with the wave of
his magic wand and he does lottsa times.
Why would any framer in his right mind
grow FEED to sell as feed?

[Burbert]

Saskframer is a prime example of
everything framing. He's the best, at
everything all the time, and isn't
afraid to admit it. He is a total
winner, blowing his own trumpet all the
time. He grows malt and gets it all the
time. So we's should to. I'm guessing.
Sask farmer is always on fantastic
family vacations, hauling grain, makin
life long buddies at grain companies and
railroads. He's truly a legend in his
own mind and kin do everything, fer
everyone all at the same time, bet he
thinks he's great in bed two! Guess he
is trying to be a lot like me. Hee,
heee!