The Brussels Post, 1979-03-14, Page 5A FULL HOUSE — The Royal Bank had a good crowd when it sponsored
a farm meeting at the Brussels, Morris and Grey Community Centre on
Thursday. (Brussels Post Photo)
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Active market here
The market at Brussels
Stockyards Friday was very
active with all classes of fat
cattle trading higher, cows
were steady, pigs traded
easier. There were 893 cattle
and 2043 pigs on offer.
Choice Steers - 83.00 to
86.00 with sales to 86.90.
Good Steers - 80.00 to
83.00.
Sixteen steers consigned
by John M. Perrie of Brus-
sels averaging 1153 lbs. sold
for 86.90 with his 30 steers
averaging. 1196 lbs. selling
for an overall price of 86.60.
Five steers consigned by
Clarence Ritchie of Lucknow
averaging 1264 lbs. sold for
86.00 with his lot of 13 steers
averaging 1163 lbs. selling
for 85.80.
Fourteen steers consigned
by Murray Forbes of Clinton
averaging 1032 lbs. sold for
86.30.
Two steers consigned by
Maple. Emblem Farms of
Dungannon averaging 1315
lbs. sold for 86.35 with their
26 steers averaging 1182 lbs.
selling for an overall price of
85.70.
Thirteen steers consigned
by Earl Cox of R.R.2,
Goderich averaging 1123 lbs.
sold for 85.80 with his 35
steers averaging 1120 lbs.
selling for an overall price of
85.67.
Fifteen steers consigned
by Henry Farms of Blyth
averaging 1124 lbs. sold for
85.80 with their 30 steers
averaging 1182 lbs. selling
for an overall price of 85.45.
Seven steers consigned by
George Adams of Wroxeter
averaging 1235 lbs. sold for
86.50 with his 19 steers
averaging 1259 lbs, selling
for an overall price of 85.43.
Seven steers consigned by
Earl Fitch of Wroxeter
averaging 1108 lbs. sold for
85.30 with his lot of 12 steers
averaging 1126 lbs. selling
for 85.20.
Six steers consigned by
McKerchar Farms of R.R.1,
Dublin averaging 1145 lbs.
sold for 85.70 with their lot of
12 steers averaging 1186 lb.,
selling for 85.20.
Three.heifers consigned by
Bob Hastie of Gorrie
averaging 1056 lbs. sold for
83.90.
Two heifers consigned by
Mac Armstrong of R.R.2,
Teeswater averaging 1115
lbs. sold for 83.00 with his lot
of 5 heifers averaging 1006
lbs. selling for 82.05.
Keep up with beef
cycle, farmers
told in Brussels
THE BRUSSELS POST, MARCH 14, 1979 1—
BY DEBBIE RANNEY
The outlook for the beef industry ana
other commodities provided the forum for a
farm meeting held by the Royal Bank in the
Brussels, Morris and Grey Community
Centre on Thursday.
Ralph MacArtney, beef specialist from
the Ontario Ministry of Ariculture and
Food (OMAF) in Clinton urged beef
farmers to retain more heifers for
breeding.
He told farmers that the most important
thing in the cattle cycle was to keep abreast
of "where you are in the cattle business."
He explained that as the supplies of the
product increase, generally ,the product on
the market exceeds demand and prices
drop , so that producers cut back supplies
to the point where the price increases
again. He said there was a'cycle in the beef
business about every 10 or 12 years.
"We had the biggest calf crop in 1975
and you have to keep in mind that from the
time the cow is bred till the time the calf
goes to market it's about three years later
and it's really difficult to make any market
projections," He said.
He said the market started to decline in
1975 and as the years progressed fewer
and fewer cattle were available for feeding.
He said many people in Canada kept their
cattle so that they were fairly old when they
got to market whereas United States cattle
were selling fast and farmers there con-
tinued to replace them.
"Hopefully this year we'll start to see
some people retain heifers for breeding,"
he said. •
He added that the problem with the beef
cycle was that people tended to over react.
TOO HIGH
"We always get supplies too high or as
the situation is now, too low. Likely in the
next f ew years, prices will improve a bit,"
he said.
Now, heavy cattle are returning to the
feedlots for more feeding whereas a
couple of years ago these cattle •
; went to slaughter.
Suggestions he made to improve the
beef cattle market situation included
budgeting, making sure feeding programs
were going to get the cattle off to market
quickly, and hedging replacement feeder
catle on the futures market next fall.
Another problem he noted in the beef
industry was that out in the west there was
a lot of cheap barley but here the cattle had
to be fed pretty expensive corn and silage
because of a reduced yield.
Improvements he suggested in raising
beef cattle were balanced ration of feed,
alternative feeds, using implant and
rumasin and getting faster gain to
minimize cost. For people not sure they
wanted to stay in the beef business he
suggested.
Alternative methods of farming such as
getting into the feed business or diver-
sifying, "I think it's an on going decision
that everybody has to make,"
Brian. Little from the Agricultural De-
partment of the Royal Bank's regional
office in Kitchener showed a film and
discussed how some risks involved in
farming including production and yield risk
and weather could be eliminated.
Some of the suggestions made to
eliminate or control risks, provided with a
word of caution, were: for production and
yield risk--selecting, do what you do best;
diversify your business, avoid adding
inefficient enterprises, maintain flexibility
using low-risk production practices, in-
vesting in extra machine capacity,
negotiating lease arrangements,
maintaining resource reserves,
maintaining a crop insurance program,
obtaining additional information on live-
stock and crops.
SUGGESTIONS
Suggestions made for controlling
business and financial risks were to:
maintain adequate liquidity, have longer
repayment periods on loans, leasing
strategy, incorporating parts or all of the
operation to limit risks, and obtaining more
accounting information.
In controlling technological risks, the
suggestions were to maintain flexibility--
eg. shorter lived assets, lease rather than
purchase, keep yourself informed of the
latest property insurance, for social and
legal risks-maintain a libility insurance
program and keep informed of the new
regulations of the law and for human
risks--plan back-up managements, plan for
the possible loss of an employee, maintain
an insurance program and estate 'planning.
All these things depend on the farmers,
resources, goals and objectives and at-
titude.
' OUTLOOK
Mr. Little also gave the outlook on pork,
dairy, poutlry, and cash crop farming. He
said the pork industry looked pretty good
until the end of this year anyway and that
there had been a lot of expansion in
Ontario by people committed to the industry.
He said it looked like the dairy industry
had stabilized during the past nine months.
He said the broiler people had seen the gap -
in the meat business because of higher
prices so that they increased their quotas
and made quotas available. Cash crops
such as corn and soybeans look really good
for next fall, he said.
"I' would say agriculture is about the
brightest thing on the whole horizon in the
economy right now," he said.
"We have to have food production. The •
problem is to convince the consumers to
pay a reasonable price," he added.
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