HomeMy WebLinkAboutThe Citizen, 1990-05-09, Page 15THE CITIZEN, WEDNESDAY, MAY 9, 1990. PAGE 15.
‘Fill your quota’ cream producers urged
Cream Producers must find ways
of filling their quotas or their
industry is in danger, farmers
attending a meeting of the Huron
County Cream Producers in Bel
grave were told May 1.
The message was repeated by
Cream Board officials and by
representatives of Stacey Bros, in
Mitchell, a creamery that depends
on farm-separated cream to pro
duce butter.
Ivan Stueck, District Director on
the Ontario Provincial Cream Pro
ducers Board told members that if
current production trends continue
cream farmers will have filled only
81.9 per cent of their quota
allocation at year end. If 85 per cent
of the quota isn’t filled, part of the
allocation for farm separated cream
may be taken back by the dairy
commission. He said a number of
problems, including breeding pro
blems and poor hay quality may
have contributed to drops in cream
production.
John Duskocy, chairman of the
Huron County Cream Producers
Association urged farmers to bor
row quota from others if they can
produce more cream to lend quota
if they would be unable to fill their
quota this year.
George Stock, chairman of the
Ontario Cream Producers Board
said that although low production
and low quota prices seem bad
* ^news, this is actually an excellent
:ime for farmers to expand in the
cream business. With the cream
quota price down at 23 cents a
kilogram for unused quota “it’s a
drop in the bucket”. “It’s the kind
of year you want to turn your
thinking around,” Mr. Stock said.
Steve Ritz, supervisor of butter
and special products for Stacey
Brothers echoed the advice that
now may be the time to expand..
The dairy industry seemed to go in
two year cycles, he said and the
cycle seems to be going down right
now, meaning it will go up again.
There has been a push on people to
produce more milk and cream and
this has driven the price of cows up
but indications are that by next
spring the price of cows will come
down and that maybe a time to
expand, he said.
He said there is strong demand
for farm-separated cream and his
plant will take all it can get. There
is still a demand for butter with
consumers, he said.
Asked what the future is for the
cream producer, Mr. Stock pointed
out that butter is still the number
one industrial dairy product mak
ing up close to 40 per cent of
industrial dairy sales. Even in a
worse case scenario cream produ
cers will still always have a quota
that can be sold or converted to
fluid milk, he said.
Mark Maggee, in charge of
trucking and logistics for Stacey
Brothers said his company was at
the meeting because “we want the
cream industry to succeed. We
don’t want quota lost.”
Concern over supply manage
ment under free trade and GATT
negotiations was expressed by
many at the meeting. When com
ments of the chairman of Ault
Foods, parent of Stacey Brothers,
about the future of supply manage
ment were mentioned, Mr. Mag
gee said only part of the speech
was quoted. The message had been
that the government wasn’t taking
the threat posed by GATT seriously
enough, Mr. Maggee said. If GATT
regulations are allowed to under-
riiine the supply management sys
tem about half the Canadian dairy
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Mr. Stock agreed that producers
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