Ontario Farmers Know How to Manage Both Growing AND Marketing

[parsley]

Larry Weber says in his newsletter this morning in the part about Ontario Wheat Marketing Board:

"Of the wheat grown, 2,903,900 MT, a whopping 90,000 MT was deliv-ered to the pools or 3%"


Imagine. Ontario farmers delivered 3% and sold the rest themselves.

Now, I wonder why.

Ontario farmers have not spent 60 years wringing their hands, lined up giving their "opinions" to employees at an annual Cough and Puke Conference that would pay them to attend.

No indeed.

They are not cap-in-handers

Ontario farmers manage BOTH the agronomics on their farm AND they also manage the marketing on their farms.

But then, they are confident they can do both.

And insist on doing both.

Because that is what business people do.

Pars

[charliep]

Not Ontario but here is a Australian Barley Board communication on their marketing programs.

[URL="https://www.abb.com.au/mediareleases/tabid/191/newsid533/297/mid/533/default.aspx"]ABB contracts[/URL]

[parsley]

charliep, Ontario farmers didn't seem to care what the OWB offered them, maybe it was bells and whistles and balloons, or maybe it was regional wheat marketing pools, or maybe it was jacuzzi night selling with wheat massages, the point I was trying to make by posting was this, and I think it was Weber's point too, unless I'm reading it wrong,.... all of the Ontario farmers**** EXCEPT 3%****** byppassed Ontario Wheat Board marketing.

That was the point.

[charliep]

sorry about that.

Was only making the point things change when there is competition and farmers are able to make marketing decisions. From AAB side, I found the tone interesting and their willingness to offer a variety of products that are tuned to a farmer business needs.

[charliep]

Should be ABB - not AAB.

[dalek]

You almost got it Parsley. I would guess maybe 10% of producers actually delivered SOME of their yield to the board. Probably only 1-2% go solely through the board, the rest use it for excess production over and above what they have contracted, or as a small part of their marketing plan.

Don't know, haven't sold anything to the board for years now.

[dalek]

Sorry, noticed that was 3% of total production. I'd guess probably more like 10-15% of producers rely on the board for all or most of their marketing but they'd be the ones representing 1-2% of production.

[parsley]

<p></p>
<p class="EC_style8ptBK"><strong>[URL="http://parsleysnotebook.blogspot.com/2009/09/gfpp-shoulders-ontario-farmer-risk.html"](Risk Program)[/URL]</strong></p>

[parsley]

Agricorp licenses 264 grain dealers and 337 elevator operators in 337 locations across Ontario.

Annual grain sales covered by the program are in excess of $1.1 billion dollars