Value Adding on the Farm

[parsley]

Wood Hill Marketing Club, with 38 members, have a really good market for their special non-registered variety of barley. It is graded feed.

The small mill that they ship it to in the USA is being bought out by a large corporation, who are prepared to expand the operation considerably. Because the CWB requires the Club's members to get an export license, the CWB has complete access to the destination and the name of the company that the couple supply. The producers feel that the CWB may star to "eye up" this market and start denying them export licenses.

The growers feel that there is a conflict of interest and that the CWB cannot be both a regulator and a marketer. In Australia, the regulatory arm and the marketing arm of the Australian Wheat Authority were detatched for this very reason. Can the growers refuse to provide the name of the company that will buy their product?
Parsley

[basil]

Parsley - All very good Questions. I am very interested in the Wheat Boards answer to these and others. Keep on pushing for answers!

[TOM4CWB]

Parsley,

This was exactly my beef in 1996 when the CWB denied my export license.

I filled out all the paperwork, but the CWB was not satisfied that they knew exactly who was going to be the end user in the US. They will die before they give up that info!

Ken Ritter really got stung because farmers in district 4 know of cases where the CWB sent in salesmen after a producer applied for an export license, and the CWB significantly undercut the farmer trying to do the direct sale.

This fact left Ken Ritter speachless!

Ken Ritter knows there is a big problem, as does the CWB.

What does the CWB propose to do about this conflict?

Denying it exists isn't good enough any more is it?

[parsley]

Maybe thalpenny can answer this one.
J and C are organic farmers in Saskatchewan. They contracted with a flour mill in the East to buy their wheat in '94. To be delivered upon demand.

When they went to do the buyback, surprisingly, the CWB refused to give them an interprovincial license.... at any cost. Period. No license granted. A day later, the CWB "changed their mind" and issued the license.

J and C voiced their concerns to the CWB about J and C's legal obligations for fulfilling a written contract in the future. Particularly if the CWB denies licenses ..out of the blue. The CWB legal department replied that that the CWB can issue or deny licenses as they please and they do not have to give a reason.

Forward contracting is an invaluable tool for farmers. How do producers legally make contracts with their customers if they cannot fulfill them because of the CWB? Does this stance by the CWB help or hinder value-adding?
Parsley

[parsley]

A large group of farmers in central Manitoba are interested in contacting a Middle Eastern country that has shown an interest in identity-preserved wheat with certain characteristics. It's a country a lot of producers are uneasy with. But they have cash up-front for grain. Lots of cash.

One of the negotiaters of the deal, Henry, has family working there and consequently, has met some high profile contacts. He sees potential to make money.

Henry has worried over Howard Migie's supplementary material to Migie's March 6, 1997 presentation to the Standing Committee of Agriculture. Migie was the Director General.

In it, Migie says, "..in connection with an embargo on exports to the former Soviet Union. And this is a situation where it may not be in the interest of Prairie farmers but there was some overriding Government interest at stake"

It seems to Henry there are far too many "government interests" downloaded on the Prairie producer. He doesnt like the guys to put a deal together and then have the Canadian Government's CWB step in and shut it down with an embargo or red tape.

Would the producers be better to have the cargo destination leave from a different country ?

Parsley

[parsley]

CharlieP or halpenny,

In the 1980's there was a "situation" in Canada where the Federal Government ORDERED the CWB to provide export licenses for barley from Ontario. Would you explain what that was all about .

I'll Appreciate the information,
Parsley

[TOM4CWB]

To the CWB,

Is there a specific formula that the CWB uses to determine buy-backs?

Could the CWB explain why feed wheat and barley with specialty uses for human consumption purposes are not exempt when the CWB does not and can not legally supply these markets?

There are no Canada Grain Act Grades defining these intrinsic special values!

Are you sure what you are doing is legal?

[parsley]

Value added has consistently been tethered in the West. The CWB repeatedly states they will not issue export licenses to Designated Area farmers trying to value-add because it will negatively affect marketing by the CWB.

In this week's Oat, Wheat and barley, Jeff Reid, in his article New Regulations revive Ontario wheat, writes:

"..industry observers.....believe the Ontario wheat crop is poised to increase from its current 800,000 acres to more than a million ares over the next couple of years.

Certainly such a significant increase in production will result in the CWB having to battle it out with Ontario for international market share.That much increase in wheat will definitely have a marked effect upon marketing done by the CWB.

Only the CWB can grant export licenses for wheat and barley in Canada.The CWB makes sure that Designated Area producers don't impact upon CWB marketing by consistently denying export licenses. Should the same rule apply to Ontario producers?

thalpenny, should the CWB deny Ontario export licenses...... for the same reasons in my beginning paragraph, "because it will negatively affect marketing done by the CWB."?
Parsley

[TOM4CWB]

Thalpenny,

Since CWB Act section 39.1 now provides the CWB with the right to buy Ontario wheat under part III of the CWB Act, please tell us how the CWB fits Ontario Wheat into your marketing plans.

If production not offered to you by me is costing the CWB money, then why is not Ontario production that is not marketed by you costing the CWB money, and therefore costing western wheat and barley farmers money as well?

I fail to see the difference! Could you please explain?

[parsley]

I asked this question before..... of CharlieP or halpenny...and no answer:

In the 1980's there was a "situation" in Canada where the Federal Government ORDERED the CWB to provide export licenses for barley from Ontario. Would you please explain what that was all about .

Maybe Lee Melvill would field the question, since it would be nice to hear from you sometime...........( or are you imaginary?)
Parsley