CWB will evolve, says rep
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Simon Ducatel
VulcanAdvocate.com
2012-11-14
Now that farmers have the freedom to choose where to sell their crops, the Canadian Wheat Board (CWB) has to evolve to keep producers interested in its services.
About a half dozen Vulcan County farmers attended a CWB informational session Nov. 9 at the Vulcan Legion hall. It was also an extended deadline for farmers to sign up for a CWB harvest pool contract for wheat, durum and canola.
“It was good,” said Greg Bialobzyski, a CWB farm business representative who spoke about the changes the CWB faces. He said it would have been nice to see more farmers attending, but added the poor weather likely didn’t help.
Local agronomist André Lacourisère, a service rep for the CWB and owner of 2nd Opinion Consulting, also addressed the handful of area producers who attended.
Lacoursière spoke about the market while Bialobzyski focused more about the CWB and the changes it faces.
“They’re going to try to stay in the game,” Lacoursière said about the CWB. But it won’t be an easy road and the wheat board will face challenges, he added.
“Producers have to understand it’s (CWB) another company now — not a monopoly,” he said. “It has to be competitive to stay in business.”
The wheat board has some different tools available to its customers. If the board’s options fit a farmer’s need, he shouldn’t be scared to deal with the CWB, Lacoursière said.
“They (farmers) should look at its (the CWB) programs — if they fit, use them, otherwise, don’t,” he said.
“A producer is way ahead when he considers all the different options,” said Lacoursière.
Those options include taking a look at all the available grain marketing companies — not just the CWB, he said.
One market factor keeping some farmers from considering selling through the CWB is the current high cash market brought on by drought in the U.S., Bialobzyski said.
“That takes away from a pooling concept of grain,” he said.
Producers tend to wait for that homerun and will wait for the highest possible price before selling, said Bialobzyski.
But what goes up must also come down, he said.
Farmers don’t generally sell when prices are rising, but when the prices start to fall, he said.
“It’s important to consider the CWB as a viable option in the risk management of grain marketing,” said Bialobzyski.
Balancing risk is key, he said, adding the proverbial “you don’t put all the eggs in to one basket.”
The CWB used to provide free information to producers, but the board simply won’t have the resources to continue providing information for free.
In its restructuring, the board went to a staff of 100 from 425.
However, the board, which only used to handle wheat and barley, will now be accepting any kind of crop, said Bialobzyski.
It’s important to point out the CWB isn’t asking producers to commit their entire crops to the board, said Bialobzyski.
“We’re not asking producers to sign over everything, just a portion to see how it goes,” he said.
“If you don’t sign up, how can you justifiably criticize the board after the fact?”
Another important aspect of the CWB’s drastic changes is that politics have been left at the door, said Bialobzyski.
“We’re operating in a competitive environment,” he said.
Although the board is now another company competing for business, the CWB will receive government backing for five years, after which point it will have to become self-sustainable.
“We have to evolve into a private enterprise or a co-op,” said Bialobzyski, who’s confident about the CWB’s future success.
Although the wheat board is in strong financial shape, it will need support from Canadian farmers to keep it viable, he said.
Selling product is not a problem for the wheat board, it just needs to secure farmer’s grain, said Bialobzysk.
“Our history and our sales relationship with more than 70 countries in the past 60 years help us to maximize the best sales possible” through strong relations with customers, he said.
He told the Advocate Nov. 13 the CWB has been “getting good sign up” and that the board can move forward. The CWB will likely have other pool contracts later this winter, but details have yet to be announced, said Bialobzysk.
After the meeting, several farmers signed up on a harvest pool contract with the CWB through Lacoursière.
He said it’s possible they signed on out of curiosity to see how the new CWB will work for them.
The CWB has to rebuild the confidence of producers, said Lacoursière.
“They’re more than willing to try,” he said.
--------------------------------------------------------------------------------
Simon Ducatel
VulcanAdvocate.com
2012-11-14
Now that farmers have the freedom to choose where to sell their crops, the Canadian Wheat Board (CWB) has to evolve to keep producers interested in its services.
About a half dozen Vulcan County farmers attended a CWB informational session Nov. 9 at the Vulcan Legion hall. It was also an extended deadline for farmers to sign up for a CWB harvest pool contract for wheat, durum and canola.
“It was good,” said Greg Bialobzyski, a CWB farm business representative who spoke about the changes the CWB faces. He said it would have been nice to see more farmers attending, but added the poor weather likely didn’t help.
Local agronomist André Lacourisère, a service rep for the CWB and owner of 2nd Opinion Consulting, also addressed the handful of area producers who attended.
Lacoursière spoke about the market while Bialobzyski focused more about the CWB and the changes it faces.
“They’re going to try to stay in the game,” Lacoursière said about the CWB. But it won’t be an easy road and the wheat board will face challenges, he added.
“Producers have to understand it’s (CWB) another company now — not a monopoly,” he said. “It has to be competitive to stay in business.”
The wheat board has some different tools available to its customers. If the board’s options fit a farmer’s need, he shouldn’t be scared to deal with the CWB, Lacoursière said.
“They (farmers) should look at its (the CWB) programs — if they fit, use them, otherwise, don’t,” he said.
“A producer is way ahead when he considers all the different options,” said Lacoursière.
Those options include taking a look at all the available grain marketing companies — not just the CWB, he said.
One market factor keeping some farmers from considering selling through the CWB is the current high cash market brought on by drought in the U.S., Bialobzyski said.
“That takes away from a pooling concept of grain,” he said.
Producers tend to wait for that homerun and will wait for the highest possible price before selling, said Bialobzyski.
But what goes up must also come down, he said.
Farmers don’t generally sell when prices are rising, but when the prices start to fall, he said.
“It’s important to consider the CWB as a viable option in the risk management of grain marketing,” said Bialobzyski.
Balancing risk is key, he said, adding the proverbial “you don’t put all the eggs in to one basket.”
The CWB used to provide free information to producers, but the board simply won’t have the resources to continue providing information for free.
In its restructuring, the board went to a staff of 100 from 425.
However, the board, which only used to handle wheat and barley, will now be accepting any kind of crop, said Bialobzyski.
It’s important to point out the CWB isn’t asking producers to commit their entire crops to the board, said Bialobzyski.
“We’re not asking producers to sign over everything, just a portion to see how it goes,” he said.
“If you don’t sign up, how can you justifiably criticize the board after the fact?”
Another important aspect of the CWB’s drastic changes is that politics have been left at the door, said Bialobzyski.
“We’re operating in a competitive environment,” he said.
Although the board is now another company competing for business, the CWB will receive government backing for five years, after which point it will have to become self-sustainable.
“We have to evolve into a private enterprise or a co-op,” said Bialobzyski, who’s confident about the CWB’s future success.
Although the wheat board is in strong financial shape, it will need support from Canadian farmers to keep it viable, he said.
Selling product is not a problem for the wheat board, it just needs to secure farmer’s grain, said Bialobzysk.
“Our history and our sales relationship with more than 70 countries in the past 60 years help us to maximize the best sales possible” through strong relations with customers, he said.
He told the Advocate Nov. 13 the CWB has been “getting good sign up” and that the board can move forward. The CWB will likely have other pool contracts later this winter, but details have yet to be announced, said Bialobzysk.
After the meeting, several farmers signed up on a harvest pool contract with the CWB through Lacoursière.
He said it’s possible they signed on out of curiosity to see how the new CWB will work for them.
The CWB has to rebuild the confidence of producers, said Lacoursière.
“They’re more than willing to try,” he said.
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