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February 14, 2007

Canadian Wheat Board: "Our apologies for the awkwardness"

Background, via a reader: "The Ag minister wrote an op-ed letter in January, wherein he made certain price comparisons on wheat. The CWB is mass mailing prairie newspapers in reply. But instead of trying to directly challenge the comments made by Strahl, the CWB is trying to “correct” the newspaper’s “erroneous price comparisons”. Here’s what happens when one editor points out that the CWB ought to state that Strahl had his numbers wrong. Enjoy!"

Correspondence with a Saskatchewan weekly newspaper from Heather Frayne, CWB Communications Consultant:

(1) Heather Frayne original letter:
Woops. Sent you the wrong letter. Here is the right one. (She had first sent the one intended for the Whitewood Herald).

Heather Frayne
CWB communications consultant (acting)

__________________

The following is a letter to the editor regarding erroneous price comparisons in an article in the January 24 issue of The ***.

It was suggested in the January 24 issue of the *** that an Ontario farmer currently selling hard red spring wheat with 13.5 per cent protein would receive $5.50 per bushel, whereas a grower on the Prairies selling 1CWRS would receive about $4.40 per bushel as a final pool return - approximately $1.10 less. The implication is that this is because of poor performance by the CWB. That implication is incorrect, because of several errors in the comparison.

To begin with, the comparison relates a spot price (the Ontario price) to a pool value (the CWB Pool Return Outlook). This is a misleading comparison. A pool value is by definition an average of prices achieved over an entire crop year. In a rising market such as we have experienced so far this crop year, a spot price is always higher than a pooled price. Is the CWB selling wheat at those "high" Ontario values and returning those dollars to farmers? Yes. In fact, CWB values are even higher, as noted below.

The Ontario farmer spot price of $5.50 per bushel is presumably a price at or near an Ontario mill. Therefore, an appropriate comparison would be the current price of CWB wheat landed at an Ontario mill. On February 5, the CWB offered eastern mills No.1 CWRS with 13.5 per cent protein for $230.47 per tonne at Thunder Bay. Add to this freight charges of $25 from Thunder Bay to the mill, and the landed price equals $255.47 per tonne or $6.95 per bushel.

The comparison, then, is between $5.50 per bushel of hard red spring wheat to the Ontario farmer and $6.95 per bushel for CWB wheat sold in Ontario. This $6.95 per bushel would be added to the pooled payments western farmers receive for wheat sold throughout the 2006-07 crop year.

Because the CWB's Ontario sales prices are based on competitive North American values, western farmers can obtain similar cash values today under the CWB's other pricing options such as our Daily Price Contract.

It appears that Ontario farmers are receiving prices that are significantly under current market values.

The truth, therefore, is the exact opposite: CWB prices are higher.

Sincerely,
Gord Flaten,
CWB Vice-President, Marketing

Heather Frayne
CWB communications consultant (acting)

(2) Editor’s Reply:
Hi Heather,

I looked for the article in question. The information appeared, not in an internally generated piece, but in an op-ed provided by Chuck Strahl, our minister of agriculture. As a hint, and since I know you're sending this to everyone who runs the op-eds from Strahl, if you want editors to run your piece, you should not try to make it look like we made a mistake - since we didn't! If you want to reword your letter to be more accurate - that being that 'in an article by Chuck Strahl, minister of agriculture, which appeared in many publications in Saskatchewan,' ... you might actually have a shot
at getting your side in print. As it is now .. best of luck, you'll need it.

(3) Letter from Heather Frayne:
Hi **,

I just called 306-** and left a message for you with a man whose name I didn't catch. He said he would ask you to call when you get back in.

I appreciate your comments, and agree absolutely that more specific information would have been useful and appropriate. Unfortunately, because of the gag order and the political environment in which we're trying to operate, I wasn't at liberty to include those details. In other words, I'm relying on editors and publishers to understand the reference--like you, most are well aware of what they've published and what they haven't--and joining the dots for their readers.

So... all the best. And my apologies for the awkwardness.

(4) Editor’s Reply:
Hello Heather,

What gag order would that be? The one that says that you cannot bad-mouth your boss - the minister of agriculture, Chuck Strahl? … I know it must be frustrating to try to mount a campaign against the guy who signs your pay checks, but I do not believe in 'inferences.' To run your letter without being specific, not only serves to make me look bad, it serves to make you look bad as well.

(5) Heather Frayne Reply:
You are, of course, under no obligation to correct misinformation that you have previously published.

I, like all employees of the CWB, am paid by the farmers of western Canada for whom I work, not by the Minister of Agriculture.

(6) Editor’s Reply:
I didn't say you worked for him, I said he signed your pay checks.

You know something Heather, better still, why don't you take this up with Chuck. He's the one who 'provided' misinformation, if in fact he did, and he is the one you should be addressing - through a letter to the editor, naming him as the culprit... and as for working for the farmers of western Canada ... I'm from Ontario and I know exactly who you're working for, not having been brought up on the fairy tale.

Posted by Kate at February 14, 2007 6:34 PM
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Comments

THAT is a thing of beauty.

Posted by: Mississauga Matt at February 14, 2007 6:54 PM

That is the kind of role that the media should be playing every day. That this bureaucrat assumes that he'll play 'wink, wink - nudge, nudge' is perhaps a sign of how prevalent this kind of thing is in the media industry. However, high praises for this editor who has the integrity (and good sense) to reply as he did.

Posted by: Shane O. at February 14, 2007 7:08 PM

One would think that one who goes by the title of "CWB Communications Consultant" would have a clue about (1) how to write a letter to the editor, and (2) how to deal with the editor (in my experience, their suggestions, though there have been few, have always made my letters better).

Evidently not. Or perhaps it's just that Ms. Trayne found the facts to be inconvenient to her argument.

Posted by: Vitruvius at February 14, 2007 7:24 PM

I'm seeing Heather's line of thinking in schools every day. Boy, are we in for a rude awakening. She clearly states that she's not being above board and is counting on newspaper editors to join her in her--nudge, nudge, wink, wink--and her employers' campaign against Chuck Strahl.

There's absolutely NO professionalism in her negotiations, just a complicit and entitled sense that she and her cause are absolutely right and that any tactic is OK to forward it. Some "communications consultant (acting)." The only part she gets right about her position is the "acting" part--and it stinks.

The word hussy comes to mind: a wanton or impudent girl or woman (Canadian Oxford Dictionary).

Posted by: 'been around the block at February 14, 2007 7:26 PM

The Ontario farmers also deliver all their grain from the combine and dont have a kings ransom of steel storage facilities to keep their crop till someone decides to sell it.These storage bins dont mean much at three percent interest rates but they sure pushed a lot of farmers off the land at twenty percent interest rates.

Posted by: spike 1 at February 14, 2007 7:33 PM

Nothing in the cororate world is done in isolation. That goes for the CWB as well.
Since they are working to undermine thier boss, he has one effective recourse. Fire them, the whole kit and kaboodle!

Posted by: melwilde at February 14, 2007 7:36 PM

Wonder is this woman is a member of the Women are Angry group. Are they still in operation.

Posted by: mary T. at February 14, 2007 7:36 PM

I followed her example right up until the part where she was adding the freight cost to get the wheat to the mill rather than subtracting it.

So, just out of curiosity, exactly why should a prairie farmer be forced to deliver to the CWB only to have the Board turn it around and sell the wheat to the pasta plant up the road from him? Especially if, the pasta plant is happy to by it directly from the farmer for slightly more than the pooled price because they don't have to pay to ship?

Posted by: Andrew at February 14, 2007 7:46 PM

Andrew; that wouldnt be fair.To who I'm not sure but it would'nt be fair.

Posted by: spike 1 at February 14, 2007 7:51 PM

Election is On??

Kate,

sorry for the OT (no current reader tips and this one is big),

Political Staples has it that Harper has rented the election buses - it's a go.

Here:

http://www.politicalstaples.com/2007/02/14/fire_up_the_buses.html

Posted by: biff at February 14, 2007 8:21 PM

Is this her? href="http://www.writersunion.ca/f/frayne_h.htm

Posted by: Shaken at February 14, 2007 8:46 PM

I'm agreeing with Shane O...I'm not surprised that the CWB propagandist can presuppose that the media will play a game of deceive the public. I'm grateful that the editor had the moral fortitude and integrity to overcome the inane assumptions of this snivel servant.
BTW...I'm the real "Biff (note the spelling)...all other biff's are imposters~!

Posted by: "Biff at February 14, 2007 8:49 PM

Seems Heather F. is having "one of those days".

http://melaman2.com/cartoons/looney/0-roadrunner/roadrunner-42.jpg

Posted by: ZiLLa at February 14, 2007 9:30 PM

OH WHAT A TANGLED CWB WE WEAVE ,WHEN WE FIRST PRACTICE TO DECEIVE.


Walter Scott.

Posted by: cal2 at February 14, 2007 10:35 PM

The point to be made here is that she, of the CWB secret society, expected this little matter to be taken care of by a once friendly media.
And for a way too many years in the past, it was.

Just ask me about complaining about how the CWB and their friends used to operate.

I had NFU members come to my door and tell me that any future letters that I wrote had to be cleared with them first.

I told them to buy their own pencil and paper and write their own damn letters, if they could.

And the Western Producer (Dryden) told me to bug off.

Three cheers for the blogs and SDA.

Posted by: rockyt at February 14, 2007 10:40 PM

"Heather Frayne began her writing career as a journalist, working for many years as a radio and television producer for the Canadian Broadcasting Corporation."

Can't be too many 'Heather Fraynes' working in Canadian journalism. Looking at the above quote from the "Writers Union", I don't think I need say more.

Posted by: Randy at February 14, 2007 10:46 PM

If i was Chuck i would have Flaten`s & Frayne`s asses fired out the door...who the hell do they think they are?

Posted by: Al W at February 14, 2007 11:03 PM

Andrew said: "So, just out of curiosity, exactly why should a prairie farmer be forced to deliver to the CWB only to have the Board turn it around and sell the wheat to the pasta plant up the road from him? Especially if, the pasta plant is happy to by it directly from the farmer for slightly more than the pooled price because they don't have to pay to ship?"

Are there "Pasta" plants in Sask or are they in the East?
Sorry for the ignorance, but I would suspect they are in the East.

Posted by: Gunney99 at February 14, 2007 11:03 PM

How many, if any, papers published her first letter. Did those papers get any response from farmers. Congratulations to that Ont editor.

Posted by: mary T. at February 14, 2007 11:06 PM

Are there "Pasta" plants in Sask or are they in the East?
Sorry for the ignorance, but I would suspect they are in the East.

They would be in the west if it wasn't for the CWB.

Posted by: HFL at February 14, 2007 11:22 PM

HFL: "They would be in the west if it wasn't for the CWB."

Same as with the Dairy industry.

Now one can see why it is so important we keep the CWB. It would be natural to move the processor plants closer to the product source otherwise. Lower cost products as well and more internationally competitive industry. Not in Canader you say?
If the CWB falls, the rest might go down like dominoes.

Posted by: Gunney99 at February 14, 2007 11:54 PM

Heather Trayne must be into some strange stuff, cuz she sure likes getting spanked in public.

Posted by: Alfalfa at February 15, 2007 12:01 AM

There was a Catelli plant in Lethbridge for years. Recently sold to foreigners and closed.
Farmers have tried for years to get pasta plants in southern alberta. Some have invested thousands of dollars for shares, but the plants never materialized. Something to do with zoning, permits and the NIMBY syndrome. So many processing jobs have been lost or moved elsewhere because of those city people who think milk comes in a carton, and meat from safeway.

Posted by: mary T. at February 15, 2007 12:15 AM

Interesting. The CWB was advertising to hire a temporary communications consultant a couple of weeks ago. Sounds like this job was probably dedicated to spin-doctoring and damage control on the marketing choice issue and Ms. Frayne got the job.

Posted by: doktor at February 15, 2007 1:57 AM

the CWB offered eastern mills No.1 CWRS with 13.5 per cent protein for $230.47 per tonne at Thunder Bay. Add to this freight charges of $25 from Thunder Bay to the mill, and the landed price equals $255.47 per tonne or $6.95 per bushel.

She is either very new to her position or trying to put some serious spin on things.

Sheila Fraser needs to spend a month or two at the CWB offices to get to the bottom of all this.

Posted by: Blackroc at February 15, 2007 7:34 AM

come on guys give poor heather a break...chuck has her under stress and she probably needs another 1000 dollar bonus at our expense.lol

Posted by: stubby at February 15, 2007 9:44 AM

It seems to me that farmers in Sask were trying to start a Co-op type pasta plant or something like that (might have been bread), but they would have had to sell their wheat to CWB and then buy it back from them to do their value added thing.

Anyone else remember anything about that? It was maybe 15 years ago or so.

Posted by: johnboy at February 15, 2007 9:51 AM

I move that the editor be given a $500 bonus.

--

Posted by: Le Politico at February 15, 2007 10:18 AM

Johnboy - that's correct, as far as I know.

Posted by: Kate at February 15, 2007 11:01 AM

I nominate that editor for Best of The Best in Canadian publishing!

Can we find more like him??

Posted by: OMMAG at February 15, 2007 12:00 PM

HFL: "They would be in the west if it wasn't for the CWB."

Gunney99 "Same as with the Dairy industry."

If you look at the west the rural population was growing til the CWB became manditory. In 3 provinces not Quebec or BC,...

someone has a letter in the western standard saying MB, alta, and Sask need to be forced to stay in the CWB course they are from BC which I think has a few acres of wheat.

If Ontario isn't in why doesn't that make the CWB collapse?

Posted by: DrWright at February 15, 2007 3:07 PM

One wonders which "Member of Parliament" Ms. Frayne works for. Any bets that it isn't a Conservative?


I'd say a Liberal is most likely given her penchant for wanting to distort the truth, or perhaps an NDP'er if she's stupid enough to actually believe in the Wheat Board.

Posted by: JamesHalifax at February 15, 2007 5:13 PM

One wonders which "Member of Parliament" Ms. Frayne works for. Any bets that it isn't a Conservative?


I'd say a Liberal is most likely given her penchant for wanting to distort the truth, or perhaps an NDP'er if she's stupid enough to actually believe in the Wheat Board.

Posted by: JamesHalifax at February 15, 2007 5:14 PM

Like most editors it seems this individual can dish it out but he can't take it, and, also as usual he would rather turn somersaults with the facts than let it pass. I have never understood why, in a society where we are all familiar with pencils that have erasers on one end, dimbulbs like this editor you quote, just can't line up like the rest of us. The bus also cometh for him.

Posted by: garhane at February 15, 2007 5:43 PM

Garhane... are you on the right thread?

Posted by: Kate at February 15, 2007 7:24 PM

Frayne's math is wrong. The price western farmers would get is the Thunder Bay price not it plus the cost of transportation to the Ontario mill. Then you have to deduct the CWB's administration costs before knowing what the farmer would get. The Ontario mills would buy CWB wheat when no Ontario spring wheat was left and a lot of the wheat grown in Ontario is winter wheat which is used for pasta etc.
.

Posted by: Alex Binkley at February 15, 2007 10:29 PM

johnboy, You might be thinking of the Prairie Pasta Producers, which took place in the late 90's. They wanted to establish a new generation coop, where farmers would own the pasta plant and deliver their durum directly to their plant.

CWB said, Nope, not unless you sell it to us first and then buy it back.

PPP said, well, what will the buy-back amount be?

CWB said, oh, who knows, just trust us.

PPP said, it ain't gonna work.

And, it never did.

Posted by: doktor at February 16, 2007 11:36 AM

Heather Trayne should take a math lesson. 255 per ton = 6.95 per bu. 230 per ton = 6.26 per bu. 4.40 per bu. =161 per ton. How does she account for the other 2.26 per bu.

Posted by: roger at February 16, 2007 12:46 PM

I believe there was a pasta plant at Mossbank, sask. that failed due to cwb and their policy on buy backs of durum wheat....I'm going to say 15-20 years ago

Posted by: Ross at February 16, 2007 1:54 PM

heather could use a math lesson. 6.95 per bu.=255per ton. 6.26 per bu.=230 per ton. 4.40 per bu. = 161 per ton. 230 minus 161 per ton = 69 per ton or 1.87 per bu. unaccounted for.

Posted by: roger at February 16, 2007 3:34 PM

...don't confuse me with the facts eh.

Posted by: tomax7 at February 17, 2007 2:58 PM
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