HomeMy WebLinkAboutThe Exeter Times-Advocate, 1956-02-23, Page 5Down
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By D. I. HOOPER
receive less dollars for his
It is beyond our comprehension
just "why the agents of the Hog
Producers Association have anta
gonized the only outlet for their
product. They have used trade
unionist tactics in their dealings
and 'have created a definite feel
ing of hostility by their actions,
That to us is exceedingly poor
business judgment.
Taking a very clinical look at
the pork industry we are forced
to assume there are only four
people interested in a hog—>(a)
Producer, (b) Processor and
wholesaler (the packing firms)1
(c) Retailer, (d) The Consumer.
To obtain a certain cash value
for any article it must be pro
duced efficiently, and be of a de
finite quality. In the case of a
hog, the price to a producer is
dependent on the price .paid by
the consumer for the various pro
ducts which are made available
to them by the retail -outlets after
the ihog has been processed by
the packing firms. And there can
be little doubt left in the minds
of our readers as to the efficiency
of the two operations when they
compare them with the efficiency
of the average hog producer, who
has only made great advance
ment in production efficiency not
only from' the standpoint of
breeding but also in feeds and
feed conversion factor.
Reasonable Profit
Thus admitting- that the three
stages, producing, processing and
retailing are efficient the big
question is how can they make a ,
reasonable met profit on these
operations. They must take their
costs plus dividends and charge
the consumer this amount for
that -quality of product.
This is the ultimate point, how
can they obtain it? Definitely not
by trying.,to cut the other fellow’s
throat. .That is detrimental to the
issue. I is necessary that they alh
flit down and have a round table
discussion of their individual pro
blems and reach an. agreement
satisfactory to all concerned.
This -is a far cry from the
present situation
producer’s selling agent and the
processor. Admittedly, there may
be fault on both sides and it may
become necessary for the pro-
between the
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ducers, if they wish to. recover
their former good relations with
the processor, to make drastic
changes in their marketing
methods. This may include. the
change of certain key personnel
whose continued presence will
not strengthen our (position.
If our memory serves us right
we believe that-the only member
vote held -in the producers organi
zation was in November 1945.
(We didn't vote,—we and many
others were .still on active serv
ice) and since that time condi-
tons have changed drastically.
When the present system of
marketing hogs was put in force
it was not by the vote of the
producers. It was by the vote of
the executive and the “party”
supporters. Theodore Parker may
be correct. In effect, it was like
a dictator government taking
power without the vote of the
people.
By now, many readers will be
saying this column is not in fa
vour of a producer organization.
They are wrong. We are in fa
vour of
support
cannot
present
They are attempting the impos
sible. They are costing the hog
producers substantial sums of
money by inefficient marketing
methods—price .gain is nothing if
other losses more than counter
act it. It is impossible to bargain
satisfactorily for a product that
.is perishable within 48 hours
(ask the peach growers—they
found out).
First Attacked Shippers
Our producer’s executive first
attacked the transporters of hogs
as the men who were making a
killing (how .many of them drive
Cadillacs?) Now they are attack
ing the -next man—the processors
(who show low dividends and in
some cases net losses).
How blind can they be? The
processors have to compete on
the open market but if they and
the producers ihad been welded
by -a strong bond of .mutual sup
port rather than .seesawing on the
whiffletree they would have been
in the position of. marketing the
liogs in a less vulnerable position.
That .price would be governed
by consumer demand and if they
priced their product out of pro
portion to their competitors-beef,
mutton and fowl—-they would
soon know about it from volume
of sales.
That is co-operative market
ing. The present so called “co-op”
marketing is weak, selfish and
vulnerable. It is showing net los
ses to the, producers. It has no
future unless the producers pro
cess their own product, er until
the past and present marketing
policies are changed.
The appeal of a local disil
lusioned farmer is .“May the Lord
protect Us from ourselves”. We
must take action before it is too
late A vote is one answer.
DID YOU KNOW?
PRO or CON"
This column will
to. present to our
matters relative 'to
system of Hog Marketing. Write
telling us your experiences and
Opinions. \
P.iS. All names confidential to
the Editor. Addiress all corre
spondence Down to Earth, Exeter
Times-Adyocate, Exeter, Ontario.
an organization and will
it as a producer but we
sanction the past and
actions of our agents.
be honoured
readers any
the 'present
By ». L HOOPER
There must always be two
sides of every picture. ’ Today
“Hog Marketing” is the most
Obscure mixed up picture that
has appeared on the farm scene
for some .time, Information re
garding the marketing of . hogs
4s not .too plentiful 'and most of
it is incomplete.
All this can be mighty mislead’-
ing. The farmers are beginning
to run just a little low on faith.
One farmer said, “If our pro
ducers organization is going to
be of any use we must have faith,
and more faith. But how long
must-we live on faith?”
The hog industry in Ontario
today is in trouble. Not very seri
ous trouble but enough. Three
weeks ago hogs started the week
at 24 cents, increased to asking
price of 24.50, dropped back" to
23.5”0 and closed at the flooi'
level of 23 cents.
The Chairman of I-Iog Pro
ducers’ Association issued a
statement to the press that he
had made the Ontario farmers
$55,0100 that week. We don’t dis
pute this statement but we would
like to have his estimate of
loss incurred by his selling
ganization when they sold
hogs at the end of the week
23 cents after holding them
almo'st 48 hours. .Some of
hogs that were included in
group were still not slaughtered
■the following Monday evening.
This report intrigued us so
much that we set out to find out
the facts if possible. We had read
the producer organization’s ac
count and in all fairness to our
readers, the hog producers, have
brought to light some verp inter
esting facts regarding ithe (selling
distribution and the value of
their produce — a market hog.
We visited the packing houses
which would normally process
the hogs marketed in this area
even under central collection
system. We did not go as a pro
ducer nor a personal friend but
rather as a reporter who wanted
facts. We .got many more than
we will have space to print.
Questions And Answers
The following are some ques
tions ‘asked:
Q. WJnat lis your view -of a pro
ducers association?
■A. They agreed that
ciation is a good thing,
not only be of service
ducers but also to the
a whole.
Q. Do you feel youi’
is justified in setting a
producers at below production
cost levels (flooi’ price)?
A. None wanted this condi
tion but felt this price level to
be temporary. They were forced
to lower the Ontario producer
price to maintain sales to retail
ers who woiild import meat. They
find that competitive pricing to
retailers is necessary. Imports
and exports of produce at all
times sets the producer price.
Q. 'An association director has
implied that packing houses get
together and set the price of
hogs? Are there any grounds for
this accusation?
A. None, The price tof hogs is
set for us. We are only small
operators in the trade The price
is set by the .agency hy asking
one of the larger companies what
they will bid for hogs in Toronto.
This bid
to abide by.
Q. It
packing
the
or-
the
for
for
the
the
an asso-
It could
to pro
trade as
company
price to
is wha.t we are forced
Waterloo Cattle
Breeding Association
William D. Smith
Native Of Exeter To Obtain The Highest Prices
Q, What about hogs delivered
to a plant for processing and
trans-shipped to collection points
to await further bids?
A. Unless the selling agency
has obtained higher bids of 50c
per cwt. or more the producer
will
hog.
Q.A.
hogs
(which offered to compromise on
the prices). Based on their av
erage yields these hogs upon be
ing checked were found to yield O d Tv* it nil i O. Ef fTt
Have you proof of this?
Yes. The agency ordered
transferred from a plant
as much as 2-5% less, not
individuals but as a group;
Immediate Slaughter Best
Q. A local farmer showed-r US proof that a hog slaughtered the
same day as delivered gave him
higher yields than hogs killed
the day after delivery. Could
this be correct? z
A. Answered by the firm who
processed this farmer’s ihogs *—
“Yes, this farmer is correct in
'his deductions, and our firm tries
in every possible manner to carry
out the policy of .immediate
slaughter and except in excep
tional circumstances will guaran
tee slaughter within 24 hours of
delivery, Oui’ policy is to give a
square deal at all times to our
customers, the farmer. He is our
lifeline
Q. What about surpluses?
A. Farmers can help the prob
lem by marketing at lighter
weights (190-200 live). This 'will
put more hogs on market in ratio
to the numbers of pounds of pork
being absorbed by the customer.1
Much of this meat would also in
this man’s opinion result in high
er net returns through higher
grades
Q. Who will handle surplus
pork?
A. Not us. We are only small
pebbles on the /beach. We will
endeavor to pay our producers
the highest possible price to fill
our sales orders but we are not
in the storage business.
Q. Do prices vary with number
of hogs on the weekly market?
A. Definitely yes, with the
number of hogs on Dominion
market not the number on On
tario market, although the ratio
of weekly marketings are com
parable. The fluctuations are not
caused by the Ontario production
but rather the Western hogs
which are priced lower than cur
rent Ontario prices.
Q. In regard .to favouritism iof
Agency to Packers, what proof?
A. On February 7 a Kitchener
■fir,m offered to ‘buy hogs deliver
ed to 'their plant yards .for f$;2'3.50.
•William D. iSmith, '56 of Petro
lia died Friday in Victoria Hos-
ptai, London. He was a native
of Exeter, a eon of the late Mr,
and Mrs. Harry Smith who lived
on the farm on the Lake Road
now occupied by Mr. and Mrs.
Warren 'Sanders.
•His wife was the former Violet
Penihale of Exeter. In 1938 Mr.
Smith went to Forest and was
employed 'by Canadian Canners.
Later he wag transferred to
Petrolia. He was engaged in the
insurance ’business for the past
five years. He was a member of
St. Andrew’s Presbyterian church
and of Petrolia Lions Club.
iSurviving besides his wife are
one son, John and one daughter,-
(Marion) Mrs, John Rankin, both
Of Petrolia. i
■Mr. L, J. Penhale, Mr. A.. J.
Penhale and Mr. and Mrs. Harry
Penhale attended the funeral on
Monday. .Interment was 'in Hills
dale Cemetery, Petrolia.
Selling agency said no, bring
•hogs over to yards. Hogs were
delivered to yards and the next
day/ February 8, the packing
house repeated the bid on the
same ihogs still at the yards, A
definite refusal to sell. These
hogs were sold to Essex Packers
in Hamilton later for $23.50.
Q. Who pays for the dead
losses?
A. If they are in the yards, the
farmer. In transport to and from,
yards, they are covered by trans
port insurance. When the buyer
■is doubtful of pig ((sick, pneu
monia, shipping fever, injured,
etc.) in the yard he simply re
jects the animal.
Q. Do you always send a rep
resentative to the yard?
A. So far, no; but if all hogs
must be procured from this
source definitely — yes, we will
make personal inspection of all
purchases before shipment.
FOR YOUR POULTRY
Sell To The
Riverside Poultry
Co. Ltd.
London 7-1230
LONDON
Phone Collect
"Where Better Bulls Are Used"
The less money you have to spare the more
important it becomes to use our services.-
The cash outlay is low.
The calves you get are efficient Converters of
feed into beef or milk.
The quality of the calves is better than average.
BETTER CATTLE FOR BETTER LIVING
For service or more information phone collect to:
CLINTON 615
Between: 7:30 and 10:00 A.M. Week Days
7:30 and O!3O A.M. Sundays and Holidays
Cows noticed in heat later in the day should be bred
the following day.
Or send coupon to ^he above office. .
Ph
Please call at my farm to give further information on
yottr Artificial Insemination service
NAME
Address ........
Location of Farm**-*
Concession
Lot No. ..
lias been charged that
r____„ companies have ima-de
.tremendous profits on their busi
ness?
A. Unanimous NO!
Editors Note — This we ■ are
forced to accept. It .has been re
ported that one firm paid a di
vidend in 1948 and 1949 of 2%
on preferred shares and their fi
nancial reports since that time
have shown net losses varying as
high at $85,0'00.
Q. If April 24, 19'56, court
decision is favourable td pro
ducer Association, what then?
A, No, one professed to be a
fortune teller, but one house
thought that it would still make
no difference. Supply and de
mand throughout the Dominion
would still control the price of
hogs.
Favorable To Packers
Q Are central collection points
not more favourable to the pack
ers than they are to the farmers?
A. A ufaited NO. While they
would facilitate their supply, a
hog is a perishable product. All
plants contacted have found too
many fractured, legs, bruises,
scratches and other injuries,
which losses are eventually
charged against -these purchases
in louver prices Refusal by selling
agency to accept bids at market
price asked is another complaint.
In the affirmative one company
felt that possible Hogs would
be bought at lower .prices, While
some hogs have been bought at
floor price, in the most -cases were brought from collection
points, and these hogs were a
substantial loss to,, the producer.
Q« Did -these ho'gs shrink?
A, Definitely yes, If they Were
not cleaned up daily. No ht>.g can
make a farmer money in a stock-
yard, Handling a hog several.
times was like handling eggs.
There ate losses, even dead
losses,
Hensall 680R2 j
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