Wheat Board monopoly to end in 2012

[petros]

As I am aware that you are directly involved in the industry, I will certainly defer to your comments. That said, am I mistaken in my belief that a grain producer must sell to the Wheat Board? One of the articles that I read related to a wheat producer that wanted use their own crop to produce bread and pasta to sell commercially and were not allowed.

Contract producing is different. The buyer pays a levy to the SWCDC (Sask Winter Cereals Developement Corp.) Which does basically the samething as the CWB. It's a marketing board.

What makes the CWB good is that a buyer can buy from one source rather than having to deal with possibly hundreds of producers or private resellers that may not have the quantity or grade required to meet the purchaser's needs.

 

[captain morgan]

From the buyers perspective, that is an excellent deal; and for that matter, I can see some upside for the producers.

Where my biggest problem lies is in the notion that a producer has no choice in determining who they sell to. I understand that the Wheat Board operates in Ontario/Quebec, but those producers have the option to sell to the CWB or to sell to an outside party.... I don't think that this issue would be nearly as significant if that same option was made available clear across the board in all provinces.

 

[petros]

From the buyers perspective, that is an excellent deal; and for that matter, I can see some upside for the producers.

Where my biggest problem lies is in the notion that a producer has no choice in determining who they sell to. I understand that the Wheat Board operates in Ontario/Quebec, but those producers have the option to sell to the CWB or to sell to an outside party.... I don't think that this issue would be nearly as significant if that same option was made available clear across the board in all provinces.

Who is there to sell to? US elevator companies in the northern US simply can't handle anymore grain than the Minnesota, Dakotas, or Montana already produce and don't want the Canadian grain.

How does the producer get their product to the buyer? The Feds won't allow us to buy our own railcars and if you don't have a semi you have to pay someone to get your product to market.

To send overseas requires bagging and loading in sea cans in small quantities. All the rail spur lines that lead to the producers have been torn out. And there just aren't that many sea cans kicking around the rural areas of SK or any province for that matter not to mention bagging facilities.

The more times a product is handled the more expensive it gets for the buyer and in the end the consumer.

If Harper wants to start coughing up extra cash or more tax credits to move the goods from producer to market then go ahead and kill the CWB so that private interests can make their cut.

Then there is the infrastruture cost thrusted on the producer and the residents of the province and the rest of Canada.

What is easier on our roadways? Grain moved in mass quantity by rail or by truck?

If Harper really wanted to make selling grain more efficient and cheaper he'd be dumping money into the Port of Churchill so we can get our grain to markets cheaper and faster with our own damn rail cars.

The farmers have been trying to buy out the Canadian Grain Car portion of the CWB for ages.

 

[captain morgan]

Who is there to sell to? US elevator companies in the northern US simply can't handle anymore grain than the Minnesota, Dakotas, or Montana already produce and don't want the Canadian grain.

Weston Bakeries, any major grocery chain that bakes in-house, breweries.. The list can be as long as your imagination.

How does the producer get their product to the buyer? The Feds won't allow us to buy our own railcars and if you don't have a semi you have to pay someone to get your product to market.

The feds may actually sell the rail cars currently under contract or owned by the CWB.. If the CWB is dissolved, they won't have a need for the logistics arm. Failing that, I am certain that big producers and/or cooperatives can arrange for economic transportation via road/rail.

To send overseas requires bagging and loading in sea cans in small quantities. All the rail spur lines that lead to the producers have been torn out. And there just aren't that many sea cans kicking around the rural areas of SK or any province for that matter not to mention bagging facilities.

If it's being done right now, it can be done without the CWB's legislated intervention. In the end, it costs money, but just look at the gouging that the CWB does to the producer.. Indies will still pay, but (theoritically) they will make more money based on the notion that CWB isn't buying really low and then selling for market. From what I understand, they are one of the bigger beneficiaries in this supply chain.

Then there is the infrastruture cost thrusted on the producer and the residents of the province and the rest of Canada.

That cost is there regardless of whether the CWB exists or not.

 

[dumpthemonarchy]

No it wasn't. It was set up in 1919, but its origins were some years older.

I read in the paper that during WW2 it was important for food production, but the emergency is over. Over time, the CWB has lost its original purpose and is just another bureaucracy we have to feed with tax dollars. Farmers are not poor, they are businessmen and they don't need a govt nanny watching over the sales of their product.

Get rid of the CWB and food marketing boards as the latter increases the price of our food. Limiting producion of food, which the food marketing boards do, is not how food should be regulated.