Craig's thread July 4 - Call on Government for 50 million

[charliep]

Thought I would bring back an old thread. (Still would be nice to sort by last date posted Joe).

craig posted Jul 4, 2007 21:12
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What am I missing? The malt industry and the CWB continue to call on the federal government to cough up if the CWB can't access enough barley supplies to meet there malt commitments.So it was alright under the old system that producers would get 50 million less for their barley because they had no other choice.We kept hearing how the board messed up last year because they forward sold too much malt early but that this year they would make up with much better prices.Guess it shouldn't be too much of a surprise. The CWB has to compete for malt business but not to secure supplies. If they screw up it must be someone elses fault. Well worth the friends of the CWB fighting for maintaining our old system. If we get that extra 40 million from the CWB we are still 10 million further in the hole.


Found the following quote in the CWB response to the to a report entitled Market Signals in the Canadian Barley Sector by the Barley Working Group of Agriculture and Agri-food Canada's Cereal Grains Value Chain Roundtable.

Source: http://www.cwb.ca/public/en/hot/record/barmarket/

Quote: "Marketing and Sales

The CWB’s marketing objective for barley is to maximize customer demand for malting, food and feed barley produced in western Canada. This is accomplished by maximizing the value created for customers. The CWB’s sales objective is to claim as much of that value as possible for the farmers it represents, through effective sales planning and negotiations. The end results are maximized volumes of designated (malting and food) barley sales at premium prices, and feed barley export sales at a premium to domestic feed barley values."

Will note that customers - not farmers - are mentioned in the first 2 sentences.

[cropduster]

You are right Charlie....different angle,different light......it never has been about MARKETING grain!!!!Now these donkeys are truly caught between a rock and a hard place.Farmers WILL know Aug 1th(as they are observing by the marketplace)that the "strength" of the CWB was only used to smother their activities.CWB lawyers argued they had "no duty of care to farmers".The TRUE market will show that in spades!!!!

[charliep]

Still don't understand why the CWB can't offer cash contracts in cooperation with maltsters for farmers who choose to use their services.

My assumption is the last published PRO in March accurately reflected the contracted values on CWB sales to maltsters. Otherwise, where did this forecast come from? Reference - http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2007_20070322.html?OpenDocument&CropYr=2007-08

Since the March PRO, western barley futures have risen by $20 to $25/tonne. See http://futures.tradingcharts.com/chart/BA/A7. Since no priced contracts with farmers have been signed (at least with the CWB), what steps have either the CWB or maltsters taken to manage their price risk/ensure they can get an accurate price signal to farmers that reflects the market and ensures farmer deliveries?

If I look ahead, I think there will still be services that a renewed CWB can offer maltsters (starting 2007-08). These two groups will then have to develop programs/contracts that farmers will participate in.

[Burbert]

Charliep, How many times do I have to point this out to you guys. The reason barley prices have climbed is because last year, a very,very, very, small amount of barley was grown/selected as malt. NOT BECAUSE OF CHANGING THE WAY WE MARKET BARLEY. Guess we'll now have to grow/market it the way the yanks do, cause apparently there is no other way. Canada can then go on picking lint out of its navel, since this is a MAJOR step forward in farming and maybe the whinnning and snivelling will stop now. Praised be Chuck and the ABBC are now in charge, yyyyyyyyyyyuuuuuuukkkkkkkkkkk!

[TOM4CWB]

Burbert,

HOW MANY TIMES MUST THIS BE POINTED OUT TTTTTTT0000000 YYYYYYYOOOOOOOUUUUUUU

You have intentionally ignored the obvious.

When the CWB sells into the millions of tonnes, at substandard prices, like the Malt Co's swear they did...

Why would any Malt co offer any more than what they can buy it from the CWB...? Obviously the CWB offered this grain at, at least $50 million under Fair Market Value.

Please explain to me how this is anything but proof you are wrong on the marketing of Barley?

Go to long term USDA charts... and see how US growers on average get more for their barley than Canadian growers!

I believe Charlie has posted these links up before.



And... since the CWB is willing to tell half truths and willing to distort real market signals on barley... what makes you so sure the same isn't happening with wheat... when there is strong evidence to show that as well?

There are none so Blind... as those who will not see!

[AdamSmith]

Burbert, explain to us why oct wpg wheat has only gone up $5.7/t since March 30, (roughly the date when the plebicite results were announced),

and oct wpg bly has gone up $28.7/t?

prior to that both tracked a very similar pattern based on the value of domestic feed grain only.

After the plebicite barley began to chart it's own path based on international demand.

If was what you say, feed wheat would have gone up a similar amount as both are feed grains that can be substituted for one another.

By the way we are talking new crop here and there is a big crop of barley out there and it's still going up.

[Burbert]

Adamsmith, The price has been going up/retreating etc., cause of the cornfusion that exists in the market at the moment. Nobody, but nobody knows, what is going on, with exception of the Angriville boys, who are great guessers at the best of times, and of course are soooo special, grain companies lovve them, since they are bound and determined to see everyone associated with the CWB, doing time, cause they are/were soooo croookeddd!!!

[FarmRanger]

Not sure I understand your logic Burbert? Are you saying that:

Farmer with a financial interest in his grain having a relationship with a grain buyer = bad thing.
But,
CWB agent with no financial interest in the farmers grain having relationship with a grain buyer = good thing?!?!

Nothing to see here, move along, move along.

[FarmRanger]

oops, sorry I posted this in the wrong thread.

[FarmRanger]

Burbert said “The price has been going up/retreating etc., cause of the cornfusion that exists in the market at the moment. Nobody, but nobody knows, what is going on….”

I can buy that the price would drop below a market price because of the confusion in the market caused by uncertainty. But wouldn't the rise compared to feed wheat be best explained by the removal of the one buyer malt market. What else changed that would explain otherwise?

[charliep]

Burbent

Yes. Less barley was grown in western Canada. Aussie had drought. Production problems in the Ukraine. Problems Europe. The driver for barley right now is middle east demand that is struggling to get covered in the short term.

The original question was about the $50 mln. As representative of the CWB, where did this number come? Is the CWB looking after farmers who will sell malt barley's interest or those of the malster?

I would encourage to read this years annual CWB producer. Your neighbors are not happy campers with the CWB. The link is below (sorry I can't make a hot link but not that techie).

http://www.cwb.ca/public/en/newsroom/releases/pdf/prod_surveymay2006.pdf