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CWB had one thing right

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    CWB had one thing right

    Talked to two different elevators this morning that have had full trains waiting to be picked up, one for a week one for two weeks. First reaction is to be mad at railways. I think we need to look at the bigger picture. One thing the CWB believed was that Canada couldn't compete in producing low protein average quality wheat but we could compete producing high quality wheat for countries to blend with cheaper wheat. It appears to me we have a limit in capacity as to what we can export and therefore we should concentrate in quality not quantity. The canola councils drive for 25 million tonnes is laughable when our system can't handle 15 million. Or the governments assertion we need private investment wheat breeding to improve yields, what we need is more railway capacity and more terminal capacity at the coast. Our capacity to export hasn't improved at all in the last 30 years. If we continue to expand production without expanding export capacity we are doomed to low prices for the foreseeable future.

    #2
    "Low prices cure low prices" " It's darkest before dawn " Prices are down worldwide, why should ours be any different ? What's wrong with 10. canola in a bear market ? What's wrong with forward pricing wheat ?

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      #3
      totally agree our infrastructure is not keeping up on the coast and in the country . We stand in line just about an hour average trying to unload a truck. We need an overcapacity of at least 30% . Grain companies have no incentive to fix it they like a wide basis.

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        #4
        low prices cure low prices ,
        but what if we are the only ones getting the low prices..

        if the rest of the world pays less freight , less for basis ,handling, less for fert. less for govt. incompetence.

        with all this govt.s successful attempts to make us totally uncompetitive in the world market.

        our cost structure is so high
        , we can't compete with anyone..

        the only places we have left to chop expenses are land values , rents and living allowance.

        and as spring comes the only thing the govt. will do is implement is another
        guaranteed money grab UPOV91.

        thanks a lot.

        Comment


          #5
          So..... Stop using fertilizer? That will solve our problem?

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            #6
            I am hoping k plus s potash sends potash to the west coast and brings urea and Phos back. Wouldn't that make someone wake up?

            Agrium and Yara would have to take notice.

            KS are not part of Canpotex . They have their own port facilities and rail cars. You got to think they are considering it when they could make them and the railways money both ways.

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