CWB barley changes

[Ron]

Why the hell do I have to log in to the CWB to listen to the new barley program? Top secret shit?

On page 1 of the producer it mentions a CashPlus program for malt barley.
I looked at the cwb site but have to log in to e-services to listen to it. More bullshit from the CWB, more to administer/control and farmers pay for it. Why not just type the bloody thing out so we can read it.
If anybody has listened to this thing please let me know what the hell it says.

SCREW THE CWB

[just_wondering]

Canadian Malting Industry Rejects CWB's New Malting Barley Price System
OTTAWA, Dec. 27 /CNW/ - The Malting Industry Association of Canada (MIAC)today informed the Canadian Wheat Board (CWB) that the malting industry is not satisfied in the Board's currently proposed Guaranteed Price Production Contract scheduled to be implemented in the New Year. Over the course of the past 4 months the malting industry has held extensive discussions with the Canadian Wheat Board in an attempt to develop alternative mechanisms for marketing barley that better fit the needs of farmers and end-users. Unfortunately, the program currently offered by the CWB does not meet the industry's most fundamental requirement: that of providing clear, accurate and fully transparent price signals. The CWB's proposal limits the price going back directly to farmers, thereby continuing the inability to send proper price signals to growers. The industry will continue to advocate to the CWB that before any new program is unveiled, it must fully address the industry's concerns and most importantly the issue of full price transparency and accurate price signals back to the farmer. MIAC will continue to work collectively with all other stakeholders in the barley supply chain to have the Government of Canada introduce legislation which offers barley farmers Market Choice effective August 1, 2008. The Malting Industry Association of Canada represents the four major malting companies in Canada. They include: Canada Malting Company Ltd. with plants in Calgary, Thunder Bay and Montreal. Rahr Malting located in Alix, Alberta. Prairie Malt Limited located in Biggar, Saskatchewan. and ADM Malting located in Winnipeg. Collectively, the companies are the largest customers of the CWB buying approximately 1.1 million tonnes (60% of the entire CWB pool)of malting barley annually. Canada is the 2nd largest world exporter of malt

[Ron]

So the board negotiates a cash price with the maltsters, gives part to producers, acts as a middleman scimming off as much as they want and distribute any surplus among farmers? Sounds like another pool?

SCREW THE CWB

[SASKFARMER3]

What part of this don't the CWB get. Its time to end this nonsense and get on with farming. Quit holding back farmers.
CWB must end, sooner than later or we will loose out again.

[parsley]

OLD BARLEY PROGRAM:

Sell barley to the CWB. Wait to see what price they set on your barley.


NEW BARLEY PROGRAM:

Sell your barley to the CWB. Wait to see what price they set on your barley. The new Malt Barley Specialist in the new Malt Barley Department will write it down on environemntally-friendly pinko paper.

"That's it folks," observes Bugs Bunny.

Parsley

[charliep]

Here is the clip for the Western Producer (will read the rest when I get home).

CWB offers option
this document web posted: 2007-12-27
By Adrian Ewins
Saskatoon newsroom

The Canadian Wheat Board plans to introduce in January a barley pricing system, designed to offer farmers the best of both marketing worlds.

The board hopes to offer farmers the choice between a cash-price contract for their malting barley, or continuing to take a pooled price.


Is the stuff in the CWB producer web area pdf or can it be clipped and pasted onto Agri-ville?

Interesting negotiation tactics by both sides. When things negotiations stall behind closed doors, its amazing how information becomes public. Benefit is farmers are now part of this negotiation.

Would encourage farmers to be aware of what is being proposed and provide comments to all decision makers including government.

Same comment changes CGC/canada grains act.

[Ron]

Charlie

What info the CWB has is only available on podcast for people who have signed up for the top secret info (at least they havent thought of making us pay for the info, yet).
It looks like the CWB negotiates a sale with the maltster, the farmer delivers, CWB pays him partial, at the end of the year the CWB pays any left over money equally to participating farmers. (this is what I understand it to say)
This sounds like a pool with a larger initial payment and no interims, just a final?
Wow, thats the best of both worlds. The CWB must think a win-win deal is when they get to screw the same farmer twice.



SCREW THE CWB

[Ron]

Going to get my fingers slapped again, yet here is some more information directly from a conference call the CWB had with select farm organisations, perhaps this is old news now - the controller at the CWB has my direct line!! I also understand that the grain trade still can't come to resolution with the CWB on how they are going to market barley in the 08/09 crop year. MIAC and the grain trade deserve the right to know now, just as I a producer should know now, that we all will be marketing our barley freely Aug 1/08.
The view of the CWB is the new plan would provide: (my comments in brackets after)
1. Cash price that responds to market conditions. (false no transparency as it is not a true cash price, new gen pooling is what is is)
2. Flexibility to offer farmers premiums and discounts. (maltsters can and do that now so whats new?)
3. Secure supplies ( I sign contracts now with whom ever with canola, pulses so why can't the Maltsters contract directly with me?)
4. Facilitate forward sales (as a middle man ? once again why?)
5. Place price & production risk on those willing to assume it
6. Liquidated damages
7. Fulfill CWB’s obligations (ok what more underpriced sales that drive the new gen pool down?)
8. Ensure competitive prices offered to farmers (ok in a true price transpanent open market that would work but not with this!)
9. Maximize farmer/selector flexibility to negotiate (what ? middle man once again going to tell the maltster what they want? instead of the maltster working with the producer to ensure quality?)

CWB price discovery :
• Up-front cash price to farmers based on feed barley ( non transparent price, as some is hidden in the new gen pool)
• Three-way contract (ok why is there a middle man in my contract with a maltster for ?)
• Pre-harvest and post-harvest - pricing periods
• CWB would establish price range for standard
specifications. Selector and farmer negotiate.
• CWB negotiates sales price to buyer. Minimum price
option.
• CWB would pool spread between farmer price and sales
price to buyer. After risk and costs, dividend paid to
participating farmers. (its my risks, my costs yet the CWB wants a piece of it for doing what again?)
• Pool offered after harvest with sign-up deadline (pooling and malt barley - barley overal does not work, in a paper where all the players took part, including the CWB, the resolution was pooling does not work, see Marketing Signals in the Canadian Barley Sector link found at wbga.org)
• Pilot (this is to be a pilot project)
CWB examples:
Two-row malt offers:
South East Asia 380
Central and South America 365
U.S./Mexico 340
Domestic 340
December barley futures (S’toon) 196.20
$1/bushel over feed (Vcr) 280 to 290
CWB views that:
1. Cash price that responds to market conditions - Yes
2. Flexibility to offer farmers premiums and discounts - Yes
3. Secure supplies - Yes
4. Facilitate forward sales - Yes
5. Place price & production risk on those willing to assume it - Yes
6. Liquidated damages - Yes
7. Fulfill CWB’s obligations - Yes
8. Ensure competitive prices offered to farmers - Yes
9. Maximize farmer/selector flexibility to negotiate - Yes

ok I once again totally disagree with this as it is not by any stretch of the truth marketing choice, just a pooling concept with masking pricing signals to producers and middleman interference with the end user.
My thoughts,
Erik

[Ron]

If the CWB negotiates prices and facilitates every contract what is to keep them from cherry picking pricing for the oldtimers club that remains in the conventional pool vs the new age pool.

SCREW THE CWB

[parsley]

NOTHING HAS CHANGED.

THE CWB STILL WANTS THE FARMERS' GRAIN TO SIFT THROUGH CWB STICKY FINGERS.

Parsley

[charliep]

Has there been any discussion on feed barley? Given different trade agreements (including NAFTA), can the CWB offer different programs for the domestic malting industry and the export market?

The maltster side by the way is they negotiate directly with you as a farmer on price. They would be willing to deduct some amount for the CWB benefit(similar to the organic program which is in the $5 to $12/tonne area) but negotiations/price must be direct between the farmer and maltster. There could still be a role for the CWB as a farm advisor (earn their $5/tonne or whatever the value). Export licences would not be a responsibility of the CWB and the maltster could sell to whoever they choose.

[TOM4CWB]

Charlie,

I believe the Ontario Wheat Growers found out in short order where a margin operator ends up... marginalised... ESPECIALLY if they don't add anything to the value chain!

Either the CWB gets on with being a valid partner in the value chain... creating value... or they had better pack up and stay in the 423 Main fortress and stop bothering us.

I can't believe these people have taken what should and could be a real real market power... that could create valid value for growers... and have squandered it.

Not one attempt to even apologize for the massive blunders on PPO's. DPC, FPC, and failing marks on pool management; prove the CWB is:

a.) Unfair in the distribution of the powers they have been given;

b.) Don't have a valid risk management system in place;

c.) Don't know how to communicate and execute a marketing plan... in a logical well managed manner;

d.) Have not figured out who they are working for... the purchaser of our grains... or the grower of the grains they have the power to control.

e.) Have squandered the "single desk" in the worst possible manner... they forced those who have the most to gain/best supporters... to loose face and confidence...

f.) Barley has been known for over a decade to be a drag and big problem for the CWB to manage... yet they continue to prove they are not in the business to create value fro grain growers... but are simply here to rub our noses in the insane theory that they can create value out of thin air... without providing anything of useful or of lasting value;

g.) If the majority of CWB Directors don't get it now... especially with barley... they never will. Goodale set up a flawed democracy... to maintain an organisation that should have had radical changes 10 years ago...

In conclusion:

There are 3 people to blame for this mess. Jean Chretien, Paul Martin, and most of all Ralph Goodale!

[parsley]

charliep,
"Export licences would not be a responsibility of the CWB" you say.


Could we have the same people who license the canola that is exported, also license the wheat that is exported?

[WheatGrower]

I have bins full of Malt barley here that I can sell to anyone of my neighboring feedlots as feed barley with no involvement from the CWB. Maybe the Maltsters should be buying "Feed Barley". Hey the CWB can use any angle or change the rules to fit the situation as they see fit. Just a thought.

[parsley]

Charlie
You raise some interesting issues regarding trade agreements:
"Given different trade agreements (including NAFTA), can the CWB offer different programs for the domestic malting industry and the export market?"

GATT allows an export 'duty, tax or other charge', but NAFTA Article 314 does not unless the 'duty, tax or other charge' is equally applied domestically.

But CWB Regulation 14.1 does not allow a fee for domestic sales, so the CWB cannot legally charge any fees for either export or domestic licences.

Hence, the CWB devised buy-backs to justify and grow their jobs. Licences are all free and the CWB gets whatever money they want.