HomeMy WebLinkAboutTimes-Advocate, 1978-10-26, Page 15piiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinijiUHiniiiininHiimn^
1
CUSTOM
CORN COMBINING
Former chairman issues warning
ean board faces so
SR Wide & Narrow Rows
Ready When You Are
Donald Geiger
236 4865
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FARMERS
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GRENIER BROS.
George ,
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Rick
237-3402
By TOM NUNN
Cash Crop Farming
The Ontario Bean
Producers Marketing Board
must make some tough
policy decisions soon or face
its own demise, according to
former Board chairman Phil
Durand.
“If major policy decisions
are not made immediately, I
believe producers will de
mand dissolution of the
Board,” said Mr. Durand
during a recent interview on
his RR1 Zurich farm.
There has been talk
among producers of cir
culating a petition to acquire
the 1,500 signatures
necessary to have the
Board’s dissolution con
sidered by the Ministry of
Agriculture and the Ontario
Farm Products Marketing
Board, he said.
Phil had a hand in adop
tion of the current agency
marketing by the Board 10
years ago but policy towards
dealers and producers
prompted him to abandon
positions as Board chairman
in 1976 and finally as a direc
tor in December 1977. He
was elected Board chairman
in 1972 and decided to resign
completely from Board
business in December, 1976
but some growers talked
with the agency marlfeting
system and dealers cc/ld be
offering incentiys to
producers witho/t the
Board’s knowledge.
“The whole syste/i is bas
ed on honesty,” /aid Mr.
Sherman. “Honesy is fine
but it’s like a spe^ limit. If
you can break it, X)u can get
away with it. It’^mpossible
to police.” ThtyBoard can
pass regulatiA18 on the
dealers but enforcing the
regulations ire another
matter, he sail.
“We don’Vreally have a
viable alterative to the
agency matfeting system,”
said Mr. /herman. “The
producers 4o not have an
elevator rpr does the Board
have an qevator. Somebody
has to pr/cess the beans and
if you’re not doing it
yourself then the dealers
have toioit.”
Dire/t sales by the Board
could /'ause other problems,
Mr. german said. Dealers
are currently handling and
marleting beans “and if
you /emove part of their job,
and’you end up still having
then employed to handle
th/ beans, you would have
soneone working for you
mcFj
hen employed to handle h7 b
;c/ne
Times-Advocate, October 26, 1978 Paae 15
tough decisions
who wouldn’t like their job.
I’d say you’d by schnooked,”
he said.
Mr. Sherman said there is
a clause in a Board agree
ment with dealers which
would allow the Board to
sell “in conjunction, with”
dealers. “There are certain
instances where we could
handle the marketing but we
haven't really seen a time
where we can use that
clause. The clause could be
used in marginal markets
but it would define that the
Board and producers are
responsible if a buyer
doesn’t pay,” he said.
Mr. Durand cited the
wheat marketing system as
an example which could be
followed by the Bean Board.
The wheat board requires
dealers to report the quality,
quantity, price, grade, and
present a certified cheque
before wheat is shipped to
trade and the same re
quirements should be made
of dealers acting as agents
of the bean board, he said.
Bean producers are also
docked 9-10 cents/lb. by
dealers receiving bad beans
but dealers are still allowed
to sell these beans, he said.
“Producers should not be
charged for the removal of
bad beans if dealers are
allowed to sell their intake.”
Besides the problems with
receiving and dockage for
bad beans, the Board also
has a definite unwillingness
to formulate policy and stick
to it, he said.
“The Board has made
policy and, after a meeting
with dealers, has been
prepared to change it. Most
of the major policy decisions
were made to satisfy
dealers
Mr. Durand cited the 1976
Hickling and Johnson report
as providing the Board with
some good recommen
dations but the report has
remained confidential and
few of the recommendations
have been adopted by the
board.
Specific information
regarding dealers’ handling
capacities and other private
information should remain
confidential but most of the
report, about 95%, should
have been released to
producers, he said. When
Phil resigned from Board
duties he was asked to
— Please turn to Page 17
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him into remaining on the
Board for another year as a
director. In December, 1977,
he resigned as a director for
several private reasons “but
mainly over disagreement
with Board policy.”
“One of my major dis
agreements was our receiv
ing system from producers.
My major concern was that
the Board had not held
dealers responsible for the
quality they receive from
producers.”
Currently the Board
accepts reports from
dealers that they have
received all no. 1 grade
beans and then .when the
beans are sold to trade,
dealers report selling lower
grade beans, he said.
“I believe that all the
beans purchased from the
producers should be bought
on the same basis as they
are sold to the trade.’,’ The
Eastern Pea Bean Grade
Standards, currently used by
dealers to sell beans to
trade, should also be used
when dealers purchase
beans from producers.
If dealers originally
report receiving all no. 1
beans they should not be
able to sell them to trade at
a lower grade, he said. With
the Borad price pooling
mechanism, grpwers who
actually deliver no. 1 beans
will lose money, said Mr, i
Durand. /
“Every ’time we allow a/
bag of no. 4 beans to bd
removed from the pool, x
replaces no. 1.1 believe th/t
to be most unfair /o
producers who deliver nd 1
beans into the pool. I thini it
is very wrong.” ■
No. 4 beans are usually
priced $5-$121ower tharjno. 1
beans and when a bagM no.
4 beans is removed frpn the
pool, the money iomes
directly out of producers’
pockets, he said. The Board
should make dealer^ respon
sible for selling be/ns at the
same grade as /they are
reported as bein/ received
from the producer, he
suggested.
“I believe it is very wrong
for a dealer to sell these
beans as no. 4'after he has
taken them in is no. 1,” said
Mr. Durand. “There is no
reason why the dealer is not
0 held responsible for what he
takes in.”
An agreement between
the Board and dealers states
that dealers cannot offer
producers an incentive to
ship through their facilities.
“Not docking producers ac
cording to the agreement
could be an incentive. It is
quite possible that they don’t
dock producers the way they
should be,” he said.
Other incentives the
dealers could offer
producers would be a lower
charge for drying or pay
ment for shipping the bean
to the dealer’s plant, he
said.
Lewis Sherman, current
Board chairman, agreed
there could be problems
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