Video - Market Prospects: Grain Supply Chain - Dr. James Nolan

[AgrivilleAdmin]

Dr. James Nolan, Department of Bioresource Policy, Business & Economics (BPBE), University of Saskatchewan, Saskatoon SK discusses "The Western Canadian Grain Supply Chain" Market Prospects 2014 segment originally broadcast on CTV Saskatchewan's "Fa

[jdepape]

It would take too long to explain all the problems with Nolan's ideas.

I would be interested in his views if he understood the marketplace better.

- graincos don't know how to coordinate shipping?!
- economies of scale in grain handling? (What he suggests - costs go down as size increases - does not apply to a fixed-cost business like grain handling. there are more important things at play that he doesn't even acknowledge).

His view is indicative of a fundamental problem we have in this industry -- that the only way to combat market power is by regulating. Rather than trying to neuter graincos (as he suggests), we would all be better off if we focused on ways to put more market power in farmers hands.

[farmaholic]

Surely not?