The Manitoba Canola Growers are exploring the opportunity for its members to market canola through the Canadian Wheat Board on a voluntary basis. Pick your jaw off the ground and check the calendar to see if this is an extended April fools joke. I’m sure that many of you had the same reaction as me…..HUH????
Based on a resolution passed in 2006 the MCGA is exploring the opportunity for its members to hand over their canola marketing to a pool account, similar to wheat. The Canadian Wheat Board has the ability to market other crops if desired but to this point crops have been coming out of the pool instead of into the pool.
On the MCGA website they list four specific reasons for this initiative.
- They like price pooling so that they don’t have to guess on when to sell or hedge their canola
- They would like to make greater use of producer cars and the Port of Churchill
- They perceive that basis levels are often too wide
- They want a window on industry cost and revenue components.
Personally this makes no sense to me at all but I thought it would be very valuable to dig deeper and try and understand this significant shift in strategy. I contacted Rob Pettinger, President of the MCGA about the reasons for the volume survey for the CWB and how this would potentially work for Manitoba canola growers if initiated. Have a listen and you be the judge whether it makes sense to you if you think the Manitoba Canola Growers will make this happen.
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