E-Malt.com News article: 3078

Canada, Winnipeg: The CWB announced on August 9 a series of changes to how farmers commit their feed barley for sale through the CWB and how they can get paid for it. The changes will improve the CWB's ability to attract deliveries of feed barley from western Canadian farmers when sales opportunities are favourable.

The CWB will split the crop year into two pooling periods instead of having one for the entire crop year. Effective immediately, the CWB will source barley from farmers through guaranteed delivery contracts (GDCs) instead of Series A, B and C delivery contracts.

"The board approved these changes so that the CWB can better capitalize on sales opportunities when market factors are positive," said Ken Ritter, chair of the farmer-controlled board of directors. "This will also help the CWB send a more accurate price signal through the pool return outlook to farmers."

The first feed barley pool will run until January 31, 2005. The second pool will run from February 1 to July 31, 2005 and a PRO for this pool will be issued a few months prior to the start date. In order to protect the returns of farmers in the pool, the CWB may limit deliveries through the GDCs. At such times, the CWB may move to cash buying, if required, to meet emerging market opportunities.

"We are committed to getting farmers the best returns possible for their feed barley," said Adrian Measner, CWB President and CEO. "With two shorter pooling periods, we are increasing our ability to attract deliveries from farmers and more effectively capture higher value sales in an international feed barley market when they are available."

These changes, which are in addition to the creation of a 100-per-cent Early Payment Option (EPO) for feed barley announced last month, follow consultations with barley producers across Western Canada.

"Farmers have been very clear that in order for the CWB to continue to play an important role in the western Canadian feed barley industry, greater flexibility was needed," said Ritter. "Today's announcement demonstrates the CWB's willingness to continuously evolve to better serve farmers' business needs."

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.


11 August, 2004