Canadian Wheat Board gone

[Topaz]

The CWB is now under the control of a US company and more in the hands of the Saudis. I don't know they are doing to the wheat , probably MG's but the bread today taste like crap for a long time. Its hard to find bread without that certain taste. So now any industry in Canada owned by foreigners and the Conservatives are selling us out and don't be surprised if we lose the name "Canadian" as citizenship down the road. http://www.huffingtonpost.ca/2015/04/15/government-privatizes-whe_n_7070054.html?utm_hp_ref=canada-business

[Moonlight Graham]

I'll tell you the truth, I have no idea what the Wheat Board does.

[Bryan]

It's nice that we're finally free of that dinosaur.

[Wilber]

It's nice that we're finally free of that dinosaur.

We are? Why would someone spend $250M on it if they didn't think it would make them a pisspot full of money?

[Derek 2.0]

We are? Why would someone spend $250M on it if they didn't think it would make them a pisspot full of money?

The infrastructure/Real Estate............

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A more apt concern, why does anyone care that Western grain farmers now have parity with grain farmers from Ontario, Quebec etc, farmers that unlike those in the Western provinces, were able to sell their crops to whom and for what price they liked........

[Wilber]

The infrastructure/Real Estate............

..

So why sell it to a vulture fund to dismantle and walk away with the proceeds instead of doing it yourself? As I said, these people aren't philanthropists.

[Derek 2.0]

So why sell it to a vulture fund to dismantle and walk away with the proceeds instead of doing it yourself? As I said, these people aren't philanthropists.

What makes you think the new buyers are a "vulture fund" intent on slash and burn of its new holdings? One could just as easily state the purchase was to secure a stable food future.........If Western grain farmers want in, they can join, but not be forced in by law.

Edited April 17, 2015 by Derek 2.0

[Wilber]

What makes you think the new buyers are a "vulture fund" intent on slash and burn of its new holdings? One could just as easily state the purchase was to secure a stable food future.........If Western grain farmers want in, they can join, but not be forced in by law.

Why else would they be interested in infrastructure and real estate?

[Derek 2.0]

Why else would they be interested in infrastructure and real estate?

Ever heard of a grain farming and distribution network without?

[Wilber]

Ever heard of a grain farming and distribution network without?

So how does one ensure a stable supply by just owning a marketing board if people are free to sell elsewhere? As the terms of this agreement won't be released until June, we will just have to wait and see. Of course by then it will be a done deal.

[Smallc]

So how does one ensure a stable supply by just owning a marketing board if people are free to sell elsewhere? As the terms of this agreement won't be released until June, we will just have to wait and see. Of course by then it will be a done deal.

They'll compete for the business of farmers, just as it should be.

[Wilber]

They'll compete for the business of farmers, just as it should be.

Don't know why they would have to spend 250M to do that when the other competitors don't.

[Smallc]

Don't know why they would have to spend 250M to do that when the other competitors don't.

How else would they buy the Wheat Board?

[Wilber]

How else would they buy the Wheat Board?

My question is why, not how.

Edited April 18, 2015 by Wilber

[Smallc]

My question is why, not how.

To make money....

[Wilber]

To make money....

So you figure this will give them an advantage over other buyers of grain. How so?

[Smallc]

So you figure this will give them an advantage over other buyers of grain. How so?

They bought an established player in the market. That's a pretty common tactic.

[Derek 2.0]

So how does one ensure a stable supply by just owning a marketing board if people are free to sell elsewhere? As the terms of this agreement won't be released until June, we will just have to wait and see. Of course by then it will be a done deal.

The wheat board owned far more than a "marketing board":

[Derek 2.0]

They bought an established player in the market. That's a pretty common tactic.

And will own a portion of the already required infrastructure required to get a given percent of grain to market......going forward, the former CWB's competitors could very well be paying to lease/ship their product in/on the former CWB's elevators and rolling stock...

[Wilber]

And will own a portion of the already required infrastructure required to get a given percent of grain to market......going forward, the former CWB's competitors could very well be paying to lease/ship their product in/on the former CWB's elevators and rolling stock...

.

Sounds like they are buying a monopoly supply system. A lot like the CPR of old. Don't see how that benefits growers or customers.

That's why I have a problem when governments do business based on ideology. It seldom works well for for the people affected by it or people in general.

[Derek 2.0]

.

Sounds like they are buying a monopoly supply system. A lot like the CPR of old. Don't see how that benefits growers or customers.

That's why I have a problem when governments do business based on ideology. It seldom works well for for the people affected by it or people in general.

The CWB was the monopoly........If the now Saudi owned firm was not willing to ship at reasonable rates, other groups now have other legal options, be it by truck or purchasing their own hopper cars to get their product to market......of course, for the Saudi firm, having thousands of rail cars empty on a siding, their several lakers tied up in port, countless silos and elevators unused and the majority of the Port of Churchill brought to a standstill doesn't make good business sense....

[Wilber]

The CWB was the monopoly........If the now Saudi owned firm was not willing to ship at reasonable rates, other groups now have other legal options, be it by truck or purchasing their own hopper cars to get their product to market......of course, for the Saudi firm, having thousands of rail cars empty on a siding, their several lakers tied up in port, countless silos and elevators unused and the majority of the Port of Churchill brought to a standstill doesn't make good business sense....

So we sold the monopoly to the Americans and Saudis. Nothing has changed unless aomeone else wants to invest big bucks in infrastructure just to drive prices down.

[Derek 2.0]

So we sold the monopoly to the Americans and Saudis. Nothing has changed unless aomeone else wants to invest big bucks in infrastructure just to drive prices down.

No, we got rid of the monopoly.......we sold assets.

And no, something very big has changed, now Western Farmers have the same market flexibility as farmers from Ontario and Quebec have had for decades........if Ontario/Quebec farmers have been able to manage for so long without a mandated Wheat board, well receiving actual market prices for their crops, Western grain farmers will do likewise.

[Wilber]

No, we got rid of the monopoly.......we sold assets.

And no, something very big has changed, now Western Farmers have the same market flexibility as farmers from Ontario and Quebec have had for decades........if Ontario/Quebec farmers have been able to manage for so long without a mandated Wheat board, well receiving actual market prices for their crops, Western grain farmers will do likewise.

Market prices are set by the customer not the seller. More sellers means more competition between sellers and lower prices. Edited April 18, 2015 by Wilber

[Derek 2.0]

Market prices are set by the customer not the seller. More sellers means more competition between sellers and lower prices.

Oh, like the cost of gas?

As said, somehow Quebec and Ontario farmers were able to survive without a government forced monopoly (likewise American, Australian etc).......why do feel Western Canadian farmers can't?