The Culture of Jealousy.... Fear, Uncertainty,
and Doubt
CWB Monopoly buying of "designated
area" wheat and barley, does the CWB really extract the premium for
farmers they say they do?
WHO can measure CWB performance, when the CWB outlaws competition?
I guess it all depends on how you view of the world.
Iraqi, Jawad Amer Sayed, hid inside a 3 foot by 7 foot false wall in his
farmhouse, for 22 years. Fear of death at the hands of Saddam Hussein's
secret police motivated his self imposed solitary confinement. He was
afraid he would be executed like his friends were, so he built a chamber
between two rooms in the house. The only view of the outside world, was a
small hole the size of his finger. From this vantage point, he could see
the inner courtyard of his farmstead. In time, a date palm grew up to
obscure this limited view. He lost all his teeth, one by one, during his
self imposed exile, and carries them in a matchbox.
Fear is a powerful tool, when used by expert villains.
The CWB marketers claims that the world (the evil USA, EU, Multinationals,
speculators, and even your "designated area" grain growing
neighbor) will destroy our wheat and barley prices if Marketing Choice was
allowed. Further, Goodale's CWB makes it self fulfilling prophesy, they
(the CWB) will be destroyed if any accountability or competition were to
be allowed in the "designated area" of western Canada.
NOW How is the CWB monopoly performing in the 2002-03 marketing year?
Well Sugardaddy Goodale, propped up sagging CWB popularity by raising CWB
wheat initial prices during the CWB elections last fall. The CWB itself
decided to abandon our wheat customers last summer and fall, and withdraw
from the market, to drive up world wheat prices. CWB Directors claimed
that they drove the world market up an additional dollar a bushel, by
withdrawing from selling the 2002 harvest.
The result.
Fear drove the wheat market last fall, CWB induced fear. October 2003 --
1CWRS 13.5 -- $380/t port offering price.
Wheat customers worldwide searched high and low to find wheat, any wheat.
They found non-CWB wheat.
And (must be a surprise to the CWB) the CWB monopoly does not control
wheat outside the CWB "designated area" in western Canada
When January 03 rolled around, the election and Christmas break over, the
CWB finally thought maybe they should sell some of our 2002
harvested wheat.
Prices had fallen drastically, Canadian quality wheat had been replaced by
lower quality wheat, (claims the CWB) and (Surprise) the worlds bread
makers and bakers were able to bake breads, buns, donuts, cookies. simply
amazing. the world had substituted Canadian Wheat with something else,
anything else.
Recent CWB sales levels appear far below initial price guarantees. On June
16th 03, the CWB Thunder Bay Domestic offering price Quoted by
OsterDowJones Commodity News (ODJ) on the DTN wire services was; 1 and 2
CWRS 13.5% and lower -- $202.86/t CDN. The CWB St. Lawrence offering price
in the first week of October 03, was $380/t, now the June 16th price was
$228.75/t.
A drop of $150.00/t, and the CWB wasn't actively promoting sales when the
record wheat values occurred.
The Canadian Government guaranteed 2002-03 price to farmers, basis Port
position -- St. Lawrence was and is $250/t
WOW, the CWB has guaranteed us $120/t less than the October selling price
for our wheat, one third less than what it was worth! And Minister Goodale
is probably clambering to stop the CWB from accepting any more grain, to
stop the pool deficit from getting bigger!
The high volatility in wheat prices, which in no small measure the CWB
takes responsibility for, drives fear against marketing alternatives
outside the CWB itself in many "designated area" farmer's minds.
Yet western Canadian wheat farmers were prevented from accessing October
2002 high values through an unrestricted cash market. Minister Goodale and
the CWB say Cash Prices would destroy the CWB and Pooling. The CWB claims
a cash market would be cherry picking, and your neighbors would get ahead
of you.
Fear, Uncertainty, and more doubt.
I think it is appropriate to end this report by reflecting upon how the
Washington Post Report by Daniel Williams quotes Iraqi, Jawad Amer Sayed.
After his 22 years of self imposed solitary confinement in his farmhouse
wall, Sayed said this;
"I enjoy sleeping outside now. Looking at the stars. But, sometimes,
I like to go into the wall. It is my second home. Maybe it is my first. I
will leave it like it is."
"Maybe it is my first. I will leave it like it is."
This is exactly what Minister Goodale and the CWB monopolists are counting
on!
By Thomas R. Jackson
Tom is an Alberta Wheat and Barley grower and marketer, who has been
actively working for marketing choice of CWB grains since his "Road
to Damascus" conversion to this cause in January of 1996. |
