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APPLES
Phil Durand says
•
THEmkonoti Emicksi1r9R. .JANUA
Durand, chairman of the Baord, Mr. Durand claim's one of his who was recently re-elected as a • main concerns is that the extra
board member from Huron Coun- profits the dealers have made, ty. Mr. 'Durand was, re-elected, have allowed them to offer along with Richard Erb and John incentives to the bean producers. Hazlitt and new comer Joe Miller, This, he claims, has forced, the all from the Zurich 'area at the smaller dealers to compete and , annual meeting of Huron County ••• 'has hurt many of the smaller, • bean producers held in Zurich
in December. The meeting saw
many producers protest 'the lack
of action on the part of the board
in carrying out a direction by the
producers at' the 1974 annual
meeting that instructed the board
to move towards ,selling the bean
crop directly and bypassing the
dealers.
Robert Allan of Brucefield, a
long time board member , who
opposed the board bypassing the
dealers, was defeated in the
election of four board members
from Huron County.
Interviewed by the News on
New Years Day, Mr. Durand was
adament in his stand that the
producers must bypass the deal-
ers.
"I believe that our marketing'
program is one • of the most
effective in Canada but it seems
we have left some loopholes open
that have allowed our dealers to
use these loopholes to the disad-
vantage of our marketing pro-
gram," said Mr. Durand.
"Under the present
—• agreement", he 'continued, "the
• dealers have the best of two
worlds. Number one, we
guarantee the dealers a' good
handling charge so they can make
a profit and we also guarantee
them storage at double the rate
they charge for storing corn."
' Mr. Durand said the bean
producers are willing to pay
double the storage rate to make
sure the dealers hive sufficient
funds to expand facilities in order
to hindle an 'ever increasing
production.
"On top of this we ,have paid
the dealers a seven per cent
incentive on anything over an
$11:59 net return to the
producer," said Mr. Durand. He
huedredweight and the Micigan
price at $58,' the lioard instructed
the dealers to sell all the beans
and since its price 'was lower than
4
the current' U.S. price, expected
this would be done.
',!.The board. felt M was most
important that wL sell the.
from Exeter Indep. News the dealers to sell the heans," IPernbers, with the exception of
This is the second of a series of according of Mr.Durand. "They .19 Mr. Allan, if they were not happy
interviews concerning the white did sell (mite a few into the U.S., with the way the board operated
bean industr y in western Ontario, even at the • high price, but we in 1975, Mr.Duirand suggested
Late in December, the News were left with $0,000--hundred- the producers did not know what
'. . interviewed Robert Allan who weight."
was defeated in, his bid for Asked if it was not strange that
re-election to the Ontario Bean the board did not know what the
Prqdncers _Marketinga BoarB„, price; the dealers were selling for
'this intereiewV•i with board over ' a six week period, Mr.
chairman Phil bitrand• took placet; Durand admitted it was.
a few days prior to 'the annual "Th is is true and this is my
convention and election of officers POO concern," said Mr. Durand.
of the board held in London en "Our, board does not hive the
Tuesday, January 6, 1976. information it should about what
Ontario's bean producers are in . is going on in the marketplace. ,I
grave danger of losing control of know from investigating other
their industry unless they are marketing ° boards that , they
willing to make changes in the • require invoices and direct
regulations currently'set down by information on who- bought • the
the Ontario Bean Producers Mar- produce,,what the price was and a
keting Board, lot of other information that the
That is the opinion of Phillip board, shquld have." ;
Bean produtets.
was going on. ,
"One of the main problems is
that the produceii do got 'have
enough information on what is
happening," said Mr. Durand.
"kris vital 'that they turn out at
the annual meetings.
Asked if it was possible that a
"middle-of-the-road" solution to
the problem might be found, one
•
should sell their own
estimated alew-gmtl/§ ftig010: also said that—other egporters
Such as Chile,' Argentina,
Ethiopia and Bulgaria have no
beans to expert.
"We feel we will be the only
exporters," said Mr Durand.
"Looking at the bean industry
since opt present board was
formed in 1968, our production
has doubled and we have,
returned more to our produters
than, any other crop," said Mr.
Durand. 'He said this was due to
die type of =dieting, board the.`
•• bean :rower's have ins, also
because the board works ve Ty
4.4
mwch clody with
413411::rt:bit:iti the Pep
extension
"mother big feeter 14 the
4tsidi W pay 0n Vwhiehhas, reltdit a1tpqtsentgf
Ontairn roducers using
pedigree seed conipared to,
cent
thiogf pranwohoeurceeetsus only about puto2907epeer
sped," said Mr. Durand. He
s tated that Ontario' yields are
consistently 35 per, cent higher
than in Michigan and he feels that
rthesephoingshiebkrusfeor thofp is. edt gr ee seed
dealers and some of the larger
ones.
"This is one of the frustrating
things," says Mr. Durand.
-"They are using the extra profit
to Make the board look bad and
undermine their competitors,"
Mr. Durand claims that unless
the bean producers are Willing to
take some action, some of the
smaller dealers are going to be
forced out of business.
"If we are going to have one or
two large dealers controlling the
bean industry it won't be good for
the producers or the general
public," says the bean board
chairman. "Too
counties which. produce beans.He
said there was a motion .
requesting the hoard to sell all' the
beans approved by the producers
at each of the county annual
meetings' and suggests that the
motion' got about 98 per cent
"In Perth county, at the
December annual, meeting for
1975, the producers felt they
wanted more information but I
feel the majority of the producers',
in Perth support the board selling •
all the beans." said Mr. Durand....
"In Middlesex, the - producers
passed a- elation instruetingwthe
board to sell beans in competition
to the dealers. This is legal,
despite statements made at the
Zurich 'annual meeting by Mr.
Allan. That statement was
misleading. It wasn't factual."
Brazilian
visitor likes
farm chores
that would satisfy the "sell the
beans" faction without bypassing
the dealers, Mr.Durand said he
felt that it was possible if the
producers could get enough
information from the dealers.
"The Board must have
information such as the quantity
and price of. beans sold and who
-.they were being sold to," said
Mr. Durand. "Right now the
board does not have that
information: 1 have tried ,to get
the board of directors to pass
motions demanding the.
information but it seems that
some of the board members are
willing tq give in to all the dealers
demands. This was a great
disappointment in the past year."
Thh question of 'why bean
producers, members of the board,-.)
would not be concerned about
getting the best deal for bean
producers was answered
indirectly by Mr. Durand.
"Some of our directors have
suggested that soother of our
directors are concerned 'that they
won't be able to sell their corn or
barley or soy beans or buy their
chemical or fertilizer to the \best
advantage it they stand up and
state their case the way they
should," concluded Mr .Durand.
In London on Tuesday, January
6, the Ontario Bean Producers
Marketing Board held its annual
meeting and ' election of the
executive.A report of that
meeting appears elsewhere in
this edition.
Asked what the present
situation for bean producers
looked like, Mr. Durand said that
it appears good as the P.5'. crop
w I probably be 4,000 or 5,000
ndred "weight less than was
m any
corporations control too much ,of
our society at the:present time."
Mr. Durand Claims the dealers,
are not living up to a contract they
signed with the board. He said
the dealers are forbidden from
paying an incentive in the
contract but have paid it to
producers, ignoring the contract.
The dealers have also accepted
beans with a lot of pick and
moisture in thent," claims Mr.
Durand. 'The producer' that ' is
delivering number one beans is
subsidizing the one that is
producing the poor quality."
Mr. Durand is convinced that
the 'board needs the dealers. and ,
must pay them a good handling
charge so they can show a profit
but he also feels the bean
producers must be in control of
their product and know what • is'
going on in the industry.
"The sterner the board makes
all the sales, the better .off the
program will be," according to.'
Mr. Durand., "We would still
have to 'use ihe dealers and p ay
them well." • -
, `Mr.Durand is also. concerned
that the. members of, the Ontario
also claims the dealers are able to, Bean Producers , Marketing
purchase beans from the. Board, of which he is 'the
producers without investing any chairman, did' not abide by the
money and go out on the market wishes of the producers as they,
and add on 'an extra fifty cents a were expressed at the annual
hundredweight or a dollar or six meeting's in the various bean
dollars or eight dollars." • producing counties in the fall of
„ Mr. Durand is particularly 1974.
bitter about a , situation which Mr. Durand says that support
developed in 1974, He claims the for the "sell the beans" faction is
producers had about 120,000 not just in Huron, as has been
hundredweight, net sold. With indicated, but is , widespread
the board's price at' $52.75 a
•.-across the. southwestern Ontario
remainder of the crop, because we
have a very large crop ,coming on,
4 a 35 per cent increase over the
year before," said Mr. Durand.
'"So we decided to stay at that low
price but due to the fact that the
dealers were tacking on as much
as six or eight dollars 'a bag, we
were left • with 60,000 bags .not
sold. The market started to slide
.becaese of the big crop coming on
and we were forced to-sell th ose
beans for about $24 to $25 a
hundredweight, a Jess of about a
million and a quarter out of the
producers pocket."
ark Asked why the producers had
re elected the tame board
Mr. Durand claims that if the
board had been selling the behns
'directly; the beans Would have
been sold.
"If they are able to make
sale, the profit goes into their
coffers," said Mr. Durand. "If
they lose .a sale because they -
• added on the extra martin of
'profit, it's the producers that
Igoe."
Asked why the board did not do ,
something; about the dealers
selling at the high price during
the six week period in, the
summer of 1974 after the board
had asked the beans be Sold,_ Mr.
Durand claimed the board did not
know what, was happening. He
stated that the board was.
depending .en the dealers to sell
the crop and found that the „
dealers did not even like the
board talking with bean
eustorners.
"There was all kinds of time for
Correspondent
Mrs. Robert Hulley
Miss Bete Maia, Brazil,' staying
with Sandra Hulley and Jesse
Sotto Maior 'Lagos Neto of North
Brazil who is staying with Ray
McNichol for 21/2 m onths spoke
and showed slides and pictures at'
the Boy Scouts in Londesboro
recently. JesSe says he likes farm'
life and enjoys helping with the
chores on the McNichol farm.
Jesse 'is interested in all the
Canadian ways, both town and
country. Jesse says 'it isn't too
hot where he lives, maybe 80° or
85°. In Brazil he likes to hunt and
swim liAd motor boats.