commercial relations

[btjadenlepp]

CWB Working On Delivery Issues
Written by Kelvin Heppner on
Wednesday, 24 October 2012



There have been some growing pains
surrounding the launch of CWB's new open
market pools.

Pool Manager David Przednowek
acknowledges some producers have faced
issues with delivering CWB-contracted
grain.

"There have definitely been some
challenges...farmers have certainly
bumped into some issues with certain
companies," he says.

He says one common theme is that grain
companies have told producers they don't
know what their deductions will be for
CWB grain.

"If someone is telling you they don't
know what their handling charges are
going to be - and they're the ones who
are setting the handling charges and
have always set the handling charges -
the farmer is not getting good service
from that elevator and they're not being
treated all that well as a customer,"
says Przednowek.

He says most elevator staff are now up-
to-speed on how CWB contracts work in
the new marketing environment, but if a
farmer is facing challenges, they can
deliver their CWB grain to any company.

"You have the opportunity to shop that
grain around and seek out delivery
opportunities at other facilities if
you're not getting treated properly or
if you can get a better deal. They are
mobile contracts," says Przednowek.

He notes grain that's been contracted to
the new pools is moving.

"About a quarter of the Early Delivery
Pool has already moved, and some of the
Harvest Pool is moving. We've had over a
thousand contracts that are already
delivered against," says Przednowek.

Farmers must sign-up by October 31st to
have grain marketed through CWB's new
Harvest Pool.

[btjadenlepp]

Why, why, why at this stage of the game,
pit farmers against grain companies?

This is what I'm hearing CWB say:

- If one grain buyer can't understand
their handling agreement or the new pool
programs, you as a farmer should not sit
down with him/her and your pen and paper
and just work it out. Assume you're
being treated unfairly.
- Don't pick up the phone to call head
office for some answers - they're
obviously hiding the necessary
information from country staff and
producers on purpose.
- Above all, don't be sympathetic,
patient or give them the benefit of the
doubt. Just march out of there in a
huff. Surely the next elevator down the
line is going to have all the answers
and cheaper deductions and a better deal
for the guy who insists on supporting
the new CWB.

Not that I don't - honestly, I think the
organization has great potential down
the road to bring competitive new
programs to producers. But I wonder how
much this 'tone' has to do with all this
year's delays and confusion in
establishing the commercial relations
that they so obviously need.

Whatever, I'm sure it will just take a
while for all that kool-aid to wear off.

www.farmlinksolutions.ca

[bucket]

Better yet, why doesn't the marketing wizards in winnipeg come out with prices based at the delivery point instead of TB or Vancouver.

[cottonpicken]

Imagine for a second a magical brokerage
system,hooking up buyers and sellers on timelines
and commissions etc etc etc

Un-levered and cdic approved.

Thank you from before Brenda,i remember.

[mbratrud]

Tensions high because they are not buying any grain. I can honestly say i dont know of one person who put any grain in a pool...

[fjlip]

Same here, nobody.

[wmoebis]

Bucket I think the price is set FOB Van and TB because that is where they have negotiated their deals at.

For instance the grain companies still are getting loading incentives from the railways but aren't passing that back to farmers anymore. The theory was that we could put one company against the other to get a better rate but the grain companies have other ideas.

[bucket]

The grain companies still have to move their grain to the sales they have made. If farmers hold back, someone might have to blink.

I think I have seen it happen. P&H raised their cwrs bid to 8.60 yesterday and later months are higher.