HomeMy WebLinkAboutFarming '88, 1988-03-30, Page 47FARMING ’88, WEDNESDAY, MARCH 30, 1988. PAGE 23.
Agreement already changing marketing
Continued from page 20
meet domestic consumption needs
regulated to ensure price stability
and allocated to assure every
Region a market share. No similar
constraints exist in the U.S.
Consequently, she added, Cargill
Inc. and Cal Maine Foods “have
more laying hens between them
than all of Canada’s regulated
producers put together.”
It is this type of scenario which
will ultimately result from the Free
Trade deal, she said, as corpora
tions move toward a so-called level
playing field. She disputed Federal
Agriculture Minister John Wise
statement that marketing boards
are “secure” under a Free Trade
deal.
Citing statements from the
Grocery Products manufactures of
Canada, the Canadian Food Pro
cessors Assoc. (CFPA) and the
Canadian Wheat Board, Briscoe
said it is apparent that a primary
objective of the Free Trade deal is
to lower farm gate prices for raw
agriculture products. Despite the
continuing existence of many
marketing boards their ability to
control or regulate imports and
establish prices will be sorely
undermined, she continued.
The N.F.U. official stressed the
importance of marketing boards
for Canadian producers. Noting
that in 1984-85 56 per cent of
farmers receipts were earned
through 150 marketing boards. In
Ontario alone 23 marketing boards
accounted for57 percent of that
province’s total farm cash receipts
amounting to about three billion
dollars.
The Free Trade agreement could
also spell the end for an estimated
3,000 jobs in Ontario’s food
processing industry she added.
Citing figures from the CFPA she
said 20 plants would close immedi
ately upon implementation of the
agreement followed by serious
cutbacks in another 15 major
plants.
Briscoe said that the “changed
circumstances” resulting from the
agreement stemmed from the
logical migration of production
facilities into the U.S. to ensure a
larger market and to take advant
age of lower costs and economics of
scale.
The NFU official noted that an
obvious and immediate impact of
the agreement itself on Ontario
farmers is the loss of the two-price
wheat system. In addition, open
ing the border to U.S. imports of
grain and grain products will have
serious consequencesfor Cana
dian brewing, bakery and milling
industries, particularly since end
use certificates will not be required
for all such imports.
She suggested circumstances in
Canadian agriculture are already
in anticipation of the agreement
coming into effect. Pointing to
recent developments in egg sup
plies and prices in Ont. super
markets, Briscoe said retail chains
have been selling Grade A large
eggs at prices below those for
Grade A medium eggs. The
resulting shortage of large eggs
creates an excuse for imports of
comparable Americans eggs at
cheaper prices and force the
Canadian Egg Marketing Agency
to sell medium eggs to processors
at reduced prices.
“This is an example of how the
effectiveness of marketing boards
can be scuttled” she said.
In Manitoba a flood of chicken
parts imported from North Caro
lina and Georgia by Weston owned
Super Value stores puts strong
downward pressure on Canadian
chicken prices. Consumers were
unaware they were buying Ameri
can chicken parts because the meat
was re-wrapped prior to being put
on store shelves.
“By concentrating heavy chick
en imports on local markets within
a Region ie: Manitoba which has a
relatively small share of the global
chicken production quota, the
effectiveness of a marketing agen
cy can be broken” explained
Briscoe.
The recently proposed promo
tional agency for potatoes provides
a good indication of what future
marketing boards will be like under
the Free Trade deal, said Briscoe.
“This board will be more advanta
geous to the corporations than to
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Ontario’s wine industry will also
be decimated under the deal,
leaving grape growers stranded,
she said, adding that thfc provinces
corn growers could also expect to
face renewed imports of cheaper
American corn if the current tariff
is removed.
For livestock producers the
lowering of health standards is
setting the stage for increased
importation of U.S. cattle and hogs
supplies, she noted. Blue tongue
regulations on cattle imports and
pseudorabies rules on live hogs
have been relaxed in the Free
Trade agreement. This latter
change has broken the monopoly
selling position of the Ont. Hog
Producers marketing board.
“The potential economic inte
gration of the Canadian Agricul
tural Industry with that of the U.S..
will drown our producers in the
backwash of U.S. production,” she
concluded. “Free Trade is equiva
lent to allowing free market forces
to act as the primary price
determining factor.”
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