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Barley Plebescite Discussion

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  • charliep
    Senior Member
    • Oct 2000
    • 9002

    Barley Plebescite Discussion

    For those of you who haven't 100 % made up your mind on the barley plebescite, just an offer to answer any questions and provide information to help help with your decision. One requirement is that whatever is discussed here has to relate specifically to barley and the questions that are being asked. Politics around the CWB/the questions the federal has outlined can go to another thread.

    1) Do you believe the $59 mln benefit outlined by Schmit, Schmit and Gray? The argue I hear (and don't understand from a practical market sense) is that farmers would give up 100 % of the malt barley premium in an open market.

    2)Given two distinct markets for malt barley (export and domestic malt processing), do you get adequate price signals from the market place to make good decisions? I could ask similar questions around 2 and 6 row.

    3) What role does the CWB currently serve in malt barley marketing? Selection? Sales? Market development? Logistics? Pricing?

    4) What barley marketing products and services would the CWB provide in an open market? What would the CWB need to do to get your business commitment?

    5) I note the industry concerns expressed about overdoing the shift to canola in the coming year. I have the same concerns about barley. What will happen in the coming year if western Canada produces a 13 to 15 mln tonne barley crop and has 1 to 2 mln tonnes available for sale above normal requirements (domestic feed and normal malt sales). Tight corn supplies are optimistic but this has to be offset by increased Aussie and European malt barley supplies. What will 2007/08 look like if we maintain the current system? What will 2007/08 look like in an open market with a CWB alternative?
  • parsley
    Senior Member
    • Oct 2000
    • 10986

    #2
    1. No, I don't.

    Comment

    • kamichel
      Senior Member
      • Jan 2007
      • 631

      #3
      To number 1. About this malt premium. I was at the CWB days in Saskatoon in January and got a very depressing market outlook. They told us that when they sell malt they controle the supply that is if there is too much they only offer say less and sell the rest into the feed market to prop up the malt price. With their marketting expertise they claim that malt will be generally be 15 dollars per ton higher than feed price. That does not make sense to me because malt has never really gotten much of a premium over the feed price basis saskatoon Sask. For one if you grow malt barley it is a different barley that yields generally less than feed plus must be carefull how much N is applies so as not too have too much protien. Well some locations I think are unfortunate because they do not have other markets than the CWB. So if you grow a feed barley with 15 percent better yield, no worry about too much N then the 15 dollar premium that the board gets is actually a reduction, not a premium. Now to the 59 dollar premium that your study come up with well any farmer should know that that is complete garbage.

      Comment

      • Burbert
        Senior Member
        • Jan 2007
        • 2242

        #4
        NEWS FLASH The Alberta government wants the CWB crushed, so they, the Alberta Barley Commission can take over and be the board, maybe we'll even reinvent the Alberta Wheat Pool. Privatization has brought Alberta high electrical bills and crazy natural gas prices. Can't wait to see what they'll do to the grain business if given a chance. Good Old days here we come, lets turn it all over to the grain companies!

        Comment

        • snappy
          Senior Member
          • Jan 2007
          • 2242

          #5
          Charlie you tried.

          Answer to question 2.

          I believe Yes.

          Comment

          • Jman
            Member
            • Dec 2005
            • 70

            #6
            the malt premium in an open market will only need to be high enough to secure supplies from the domestic feed market. some years there will be no premium some years there will be a significant premium. A good example is the feed - milling oat market spreads. remeber the malt market only needs 2-2.5 MMTs per year.

            Comment

            • kamichel
              Senior Member
              • Jan 2007
              • 631

              #7
              Hey Burbert, the origional post said to keep politics out and try to stick to facts.

              Comment

              • kamichel
                Senior Member
                • Jan 2007
                • 631

                #8
                Hey Burbert, the origional post said to keep politics out and try to stick to facts.

                Comment

                • Burbert
                  Senior Member
                  • Jan 2007
                  • 2242

                  #9
                  It it is facts that you are looking for, keep on looking, this is the wrong forum, this is the baloney network! Facts just get in the way, here on Angriville.

                  Comment

                  • kamichel
                    Senior Member
                    • Jan 2007
                    • 631

                    #10
                    Sorry facts was maybe an error on my part.
                    There is two sides to every story so not my place for you not to make an opinion. I should have said political only. The thread states the discusion should be about the 5 questions being asked.

                    Comment

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