Perfect competition

[ado089]

In another thread it became obvious that some on here don't understand what an open market means and the importance of competition in that system. Here's a little study guide for you. Read the entire entry and then compare it to agriculture in Canada. What economic model do you think we as farmers fall under vs our industry partners?

In economic theory, <ahref="http://en.wikipedia.org/wiki/Perfect_competition"target="blank">perfect competition</a> (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product.

[ado089]

<ahref="http://en.wikipedia.org/wiki/Perfect_competition"target="blank">Perfect Competition</a>

Lets try that again

[ado089]

<ahref="http://en.wikipedia.org/wiki/Perfect_competition"target="blank">Perfect Competition. </a>

[ado089]

[URL="http://en.wikipedia.org/wiki/Perfect_competition"] Perfect Competition. [/URL]

[riders2010]

Perfect competition is when in utopia everyone competes without interference and that way only the most talented win. Only thing is utopia doesn t exist, because in order to win human nature is that cheating starts. outside influence is bargained for votes money sex and drugs. Its reality. So as it goes along not always the most talented get ahead but usually the most crooked,rich, stoned out sexed up individuals in one way or another control everyone and everything. Until of course they get so big that governments and people that they are actually screwing decide well we cant let them fail because of my little pension will be gone. That pretty much sums it up. Its in every industry every facet of life almost. There s even politics at the Vatican so how could there not be everywhere else.

[ado089]

Riders, my point is that production agriculture is full of contradictions when we start talking about the concepts of competition and open market.Obviously a true open market driven by pure competition is impossible but to burry ones head in the sand and and humm away happily because the CWB is gone is ridiculous.

[bucket]

True competition means you don't call one another to set the price like the graincos are doing right now.

We have true/perfect collusion.

There is no such thing as competition in Canada in grain or cattle.

But for those that don't believe me do like our federal ag minister learnt from his ag days, put your head in the sand.

[stonepicker]

I'll take this market over the old soviet style cwb every day of the week. Were wht. prices high every year under the cwb.? A resounding no!! Anybody who sold their wht. early instead of late for 2014 crop did well. Wht. and canola drop from historically high prices and everybody screams about the evil grain companies. Why would any grain co. wanna buy grain they know they can't move in good time? Prices will go up again. Garanteed

[ado089]

No one wants the cwb to return. What we have a problem with is a $3 or more basis and no access to outside markets due to a grossly dysfunctional transportation system. I was on the eight side of selling early but the structural issues need to be fixed unless we are only expecting to get a normal crop once every 5 years.

[stonepicker]

I agree that our transportation system is dysfunctional, it has been for a long time. But we did hav a huge crop and a bitterly cold winter and i believe we're farther from salt water than any other exporting country in the world. But there is definately room for improvement. I'm just saying, if the grain co's can't move it for sale,their not gonna pay top dollar, hence the wide basis.I'm optimistic that things will improve in the future.