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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 SMYTH Has The Answer: SMYTH 500 Gal. SPRAYER • Heavy Duty Draw Hitch • Wheels adjust from 60” to 90” Centres • 11L x 15 Tires - 2” Spindles • Wheels swivel for culti­ vating or discing • Wheels lock for row crop SMYTH Welding and Machine Shop RR 2, Auburn, Ontario <519)529-7212 farmers.” 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.” The All New Model 6200 HOT WATER PRESSURE WASHER for only Canadian made. Affordably priced. The most energy efficient Hot Water Washer ever available from Epps. Power and clean­ ing capabilities are superb, yet the light weight and smaller size, with air filled tires, makes the Model 6200 very easy to manoeuvre. 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