Newsroom
2003
CWB offers more marketing choice options for durum growers
April 23, 2003
Winnipeg – The CWB today announced more marketing choices for farmers growing durum by offering a Fixed Price Contract (FPC) for durum for the 2003-04 crop year.
“Farmers value the marketing choice and the flexibility that the producer payment options provide,” stated Ken Ritter, Chairman of the CWB’s farmer-controlled board of directors. “We recognize that real choice means real alternatives, and programs like the FPC give farmers more control over how their crops are priced and when they receive payment.”
The FPC for durum will be offered April 24, 2003, and is available until July 31, 2003. The FPC will enable farmers to lock in a price on a portion of the durum that they plan to commit to CWB delivery contracts in 2003-04. The FPC values for durum will be based on the Pool Return Outlook (PRO) less a discount for risk, time value of money and program administration costs. The fixed price will be available daily via the CWB Web site (www.cwb.ca), or by calling the CWB toll-free line at 1-800-275-4292. Fax on demand, a self-service option, is also available 24 hours a day at the same number.
Farmers who want to take advantage of the FPC must commit at least 20 tonnes of durum. There is also a guaranteed minimum delivery, which guarantees farmers will be able to deliver at least 60 per cent of the volumes they commit to Series A, B or C delivery contracts against their FPC.
Under the FPC, when farmers deliver durum to an elevator, they will receive the initial payment. An additional payment, representing the difference between the initial payment and the fixed price, will be issued by the CWB within 10 business days. These deliveries will be outside the durum pool and therefore will not be eligible for adjustment, interim or final payments.
The FPC for durum will have a limit of 100 000 tonnes (on a first-come, first-serve basis).
More information on the durum FPC and the other marketing choice options, the Early Payment Option and Basis Price Contracts, are available on the CWB Web site or by calling the toll-free line.
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 the costs of marketing, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
Communications consultant
Winnipeg, MB
tel: (204) 983-4497