US wheat needed to fill off CDN ship in VCVR!!!

[TOM4CWB]

Charlie;

Had you seen the CGC letter about US wheat that was used to fill up a CDN Vancouver cargo of wheat... because the terminal didn't have enough to finish the boat load off?

Doesn't this top off the saga of unregistered DNS wheat "contaminating" CDN wheat... when they just can do it at the export port terminals anyway!

IF an unregistered US hard red spring wheat meets the millers spec, why shouldn't it be paid the same as a registered CDN variety?

Superb, the new CWRS "superwheat" is mostly Grandin with a little Domain thrown in... so it is obvious every year that goes by we are producing closer and closer to US quality anyway...

If a US variety, CDN Winter Wheat Variety, or CPS wheat meets the miller's spec on milling quality, why should't it all be paid the same as CWRS?

Aren't we now working on a 5mmt exportable CWRS crop because of the further weather damage, and won't a lot more of this blending be required to make commercial boatloads with acceptable quality?

When I delivered 17/18%PX CWRS, what mill will want to use it without blending it down first?

So if blending is required, why wouldn't US wheat be allowed to be blended into CDN grain?

I understand the CGC CAN give permission for US blending... will this permission be forthcoming?

[melvill]

I can't comment on the specifics of this instance but I was at the coast recently watching ships being loaded with bulk grain. Loading a ship with US wheat (if it did happen) without mixing with Canadian grain wouldn't be at all tough. The bulk carriers I saw loading had 5 to 7 separate cargo holds. If the ship is to be loaded with different grades of the same commodity or even several commodities, each hold can effectively carry something different.

I also saw the bottom part of a hold being filled with canola and the top part of the same hold filled with flax. How? The stevedoors (spelling?) placed a sealing layer between the canola on the bottom and the flax on the top. Apparently that's quite common practice for part cargoes of bulk commodities. Of course bulk fertilizer couldn't be carried with, say, grain, in the same hold but certainly two different grains can be placed in the same hold without mixing.

[TOM4CWB]

Lee,

I understand a specific incident caused the CGC to warn terminals not to blend US and CDN grain, without the CGC's permission.

Does anyone have a copy of this August Letter?

[charliep]

Hard for me to answer. The customer buys quality characturistics as much as the grade. You would have to go to the contracts involved to evaluate.

A comment I will make is that we have potential to ruin our reputation if we blend crops to much that have different characturistics/are not appropriate to customers requirements. Our competitive advantage is quality/ability to segregate. If western Canada gives this up because of poor service to customers, our competition becomes eastern Europe/former Soviet Union. Can we compete with these countries on a cost basis?

[TOM4CWB]

Charlie,

THE US system depends on blending, and they are getting a dollar a bushel more than we are...

Shouldn't this tell us something?

The CDN system used to blend, through the CWB delivery and collection system... 2 rail cars from here, 3 rail cars from there, 10 cars from over yonder...

Now 100 car trains don't blend quality, nearly as much, and consistancy is out the window for the year long period, which mills depend upon to create consistant baking quality.

I see exactly the opposite that you see charlie, we are paying now because we won't blend to create a consistant quality that will last through our supply till the next crop year,s production becomes avaliable...

Could this partly be why the CWB is getting a dollar a bushel less than US grain companies?

[charliep]

We likely don't disagree.

Going out 10 years, more emphasis will be put on bin sampling and providing buyers very specific information on grain that is being stored.

Customers will come in with specific quality/specification requirements and the grain system will draw it forward as needed. There will be less emphasis on grades/types and more on fitting customers needs. The farm manager will have to be paid for the effort and have specific delivery commitments.

Blending will still occur but with a specific purpose/customer in mind.