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1998 September Report of the Auditor General of Canada
September 1998 Report—Chapter 11
Exhibit 11.2—Product Marketing
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Approach of Producer Organization
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Description
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Examples of Producer Organizations
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Single Desk Selling
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The product is marketed and sold by the
producer organization. Revenues are
generally pooled and producers are paid
based on the grade and quality of their
product. Producers receive payments from
the producer organization, after a pro rata
deduction has been made to repay a
portion of the advance.
In the case of the Canadian Wheat Board, elevator companies issue advances upon completion of an application by the producer. The elevator companies also pay producers a net amount at the time grain is delivered to them, after deduction of a pro rata repayment of the producers' cash advance. The Canadian Wheat Board reimburses the elevator companies for the moneys advanced and interest costs.
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Canadian Wheat Board
BC Tree Fruits
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The crop is sold by the producer under
terms of a contract with a specific buyer
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Prices are generally negotiated by
producer representatives, while quantity
and delivery dates are generally
negotiated by individual producers.
Payment is made to the producer by the
contractor. Contractors often will withhold
a portion of the sale price and remit this to
the producer organization directly,
representing repayment of the advance.
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Keystone Vegetable Producers (Manitoba
potatoes)
PEI Potato Board (process potato sector only)
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Producers find their own customers
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Customers may be elevator companies,
dealers, wholesalers, processors, feed lot
operators or livestock producers. Prices
can fluctuate on an hourly or daily basis
and may vary between similar buyers.
Some buyers may withhold repayments on
behalf of the producer organization, but in
some cases the producer is responsible for
repayment of the advance directly to the
producer organization.
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Canadian Canola Growers
Ontario Corn Producers PEI Potato Board (seed and table potato sectors)
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