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    adm

    Lower prices for grain and oilseeds were partly responsible for a 77% increase in first quarter net earnings at Archer Daniels Midland (ADM). The company today announced earnings of $266 million, up from $150 million in last year's first quarter.

    "Record harvests in North America are nearly complete. Reduced prices for grain and oilseeds improved the company's liquidity and contributed to the continuation of strong operating results," said Allen Andreas, ADM Chairman and CEO, in a company release.

    Oilseeds Processing operating earnings increased to $91 million from $68 million last year as improved North American and European operating results were partially offset by decreased operating results in Asian operations.

    Corn Processing operating earnings were lower, at $103 million compared with $107 million last year. Bioproducts results improved to $48 million from $18 million last year as higher ethanol and feed ingredient bioproduct selling prices more than offset higher

    #2
    ADM - who own 19% of Agricore United and control it 100%. We should let the CWB compete head to head with these people and teach them a lesson.

    I am sure that ADM has never dealt with such a well financed and powerful adversary as the Canadian Wheat Board in any of the 100 or so countries where they do business world wide.

    Oh and in the process the CWB will also become a much better player. When they drag themselves up out of the muck, bloody and bruised they will realize that they were just a big fish in a little pond.

    Will they survive the encounter? Perhaps. Will we recognize the good ol' CWB afterwards? Probably not. Will you be doing business with them. Probably not. Will they have learned their lesson. Who will care? Who will still be here to care? ADM will take all the marbles and move on to the next game.

    Comment


      #3
      RationAL;

      Interesting that you say the CWB could teach ADM a lesson...

      WHO DO YOU THINK the CWB IS; THE CWB IS Western Canadian Farmers. The CWB is the individual farmer next door, and to teach ADM a lesson... who will it cost money... but each individual farmer in western Canada.

      This has been ruled illegal by the WTO... to use a legislated pool to knock a commercial player in the market, out of the market place.

      If ADM can make a profit... there is room for farmers to make a profit too.

      Agricore United came out with a Canola pricing deal on Friday last... $6.50/bu minimum price... farmer has till March to lock in a higher price... if the Winipeg futures rise.

      I am glad the profits of those like ADM can give us marketing tools like this!

      NEVER BURN BRIDGES!

      Ripping one of your best end use consumers (ADM)... off... is not exactly a smart business move... is it RationA1?

      Comment


        #4
        Fear mongering only works in US Elections, Al.

        After years at the boardroom table, this is what you have to offer?

        How bout hedging some of those marbles like the rest of the big boyz do?

        Comment


          #5
          Five days after election day, the 2004 U.S. presidential election was still too close to call. Neither Bush nor Kerry had enough votes to win the election. Therefore, it was decided that there should be an ice fishing contest between the two candidates to determine the final winner.

          There was much talk about ballot recounting, court challenges, etc., but a week-long ice fishing competition seemed the manly way to settle things. The candidate that catches the most fish at the end of the week wins. The contest would take place on a remote and cold lake in Alaska. There were to be no observers present, and both men were to be sent out separately on this remote lake and return daily with their catch for counting and verification.

          At the end of the first day, Kerry returns to the starting line and he has 10 fish. Soon, Bush returns and has zero fish. Well, everyone assumes he is just having another bad hair day or something and, hopefully, he will catch up the next day.

          At the end of the 2nd day Kerry comes in with 20 fish and Bush comes in again with none.

          That evening, Dick Cheney gets together secretly with Bush and says, "I think Kerry is a lowlife cheatin' son-of-a-bitch. I want you to go out tomorrow and don't even bother with fishing. Just spy on him and see if he is cheating in any way." The next night, after Kerry comes back with 50 fish, Cheney says to Bush, "Well, what about it -- is Kerry cheatin?"

          "He sure the hell is," Bush says. "The sonofabitch is cuttin' holes in the ice!!!

          Comment


            #6
            Nice one Timm.
            Here in the 51st state (UK) we think we should get the casting vote.

            Comment


              #7
              Tom4CWB If it has been ruled illegal for a legislated body to knock a commercial, is it also illegal to use the power of a commercial body to knock a legislated one?


              I don't understand how the profits of ADM are being used to give us a marketing tool. Maybe If ADM is making profit, there isn't room for farmers to make a profit.

              Comment


                #8
                Tower;

                The base of a market system must include the right for the individual player in the market to own property... and to have the use and enjoyment of that property.

                A government legislated monopoly, that has the power to confiscate an individual farmer's grain, such as the CWB operates today... without a cost of sales... is communism... and will push those involved lower and lower till the system colapses.

                Feed barley and wheat that the CWB says have to farmgate value... are perfect examples of a colapseing CWB system... a $49/t buyback on feed wheat worth $57/t... is a simple example of what I am bringing foreward.

                Yet with 3-4 times the feed wheat we can use this year... what is the hope of a fair market value to be obtained without competition sucking up the value of our feed grains from outside the CWB "designated area"?

                Comment


                  #9
                  Sorry; Feed barley and wheat that the CWB says have little or no farmgate value...

                  ADM has a cost of sales... no doubt politics is working to improve the bottom line of these fellows...

                  However when industry players operate below costs... few farmers offer to lower sales prices to the ADM's of the world... we all have a turn... don't we tower?

                  Using to CWB to "punish" our endusers and consumers of our produce... seems a little counter productive... or do we confiscate mills and bakeries too?

                  Comment


                    #10
                    Tom, we strarted off this discussion with a quote from ADM saying how their income was way up because of depressed prices for grains. Naturally, when you are making your money on a per bushel basis for services like processing and shipping, you want the product unit price to be as low as possible so that more product moves through the system.
                    This doesn't provide me with incentive to trust my product to their good will towards farmers.

                    I don't know of any country in the world that doesn't have confiscatory powers. To Say that there is no non-communist governments in the world seems like a bit of a stretch, but that is what follows from your comment.

                    Comment


                      #11
                      Tom, you misunderstood me completely. It was a tongue in cheek statement. I was suggesting that we implement some of your ideas. Make the CWB into a grain company. Take away their marketing monopoly and let them compete head to head with ADM and see if they survive.

                      My prediction is that they wouldn't last one round in the ring with a heavyweight like ADM.

                      Comment


                        #12
                        RationAL;

                        If a marketer is smart... and covers risk... and works margins without taking on undefined risk... that marketer being the CWB or anyone else... can do business and not loose money.

                        CWB logic... as used in CWB sales strategies today... would self destruct the CWB just as you indicate.

                        The OWPMB refused to risk manage... and paid the price... RationAL; are you folks... at the CWB... going to follow step by step in the OWPMB tracks?

                        Empty words cannot convince me for one second that the CWB isn't already many steps down the OWPMB's path.

                        Your little PPO exemption is a perfect example!

                        Comment


                          #13
                          A young fellow that obtained his commerce degree told me that in business you need a sustainable competitive advantage. I would say that today the competitive advantage that the CWB enjoys is the single desk. That is what the OWPMB gave up and that is why they are struggling to survive.

                          At some point in the future the CWB may lose the single desk and I would advocate that a focus on the quality of Canadian Grain would be the best place to look for a new "sustainable competitive advantage".

                          Certainly best business practices must be employed to complement the process and risk management is an important component of that.

                          There is much room for improvement at the CWB and I see there is a will to move on basic issues such as pooling and government linkages.

                          A wise man once told me to look at history and observe that in the world major change takes on average about ten years. To some that will seem like an entire lifetime.

                          Comment


                            #14
                            That's quite a statement - basically what you're saying is the only "competitive advantage" that the CWB enjoys is no competition.

                            Comment


                              #15
                              Chaffmeister,

                              What other advantage would you expect the CWB to have over the multi-billion dollar transnationals?

                              Remember the CWB returns all proceeds from sales to the farmers at the end of each crop year. They have no capital base, own no elevators or terminals, and are not engaged in value added processing.

                              Comment

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