The Rural Voice, 1978-02, Page 14Rural news in brief
F
Long term thinking
called for in beef
industry
Long term thinking, up to 25 years in
advance was called for recently when Dr.
M.C. "Red Williams chairman of the
Department of Animal and Poultry Science
at the University of Saskatchewan when he
addressed 300 Grey -Bruce farmers at the
beef day held at the Hanover Coliseum.
"We know there's something seriously
wrong with the beef industry," Dr.
Williams said. "We're going to have to do
more long headed thinking about the
Canadian beef industry than we ever have
in the past.
"I'm not talking about market prices a
month down the road. We're going to have
to look at the main items determining beef
prices 25 years down the road."
Dr. Williams said farmers must be
mindful of the whole beef system,
producers, packaging, processing, retail-
ers and consumers when they think about
the industry.
He stated that while cow -calf operators
have been suffering for the last four or five
years, the packers are in even worse
condition. He said producers should
understand the problems faced by other
segments of the industry because if one
segment isn't operating well, then
producers will suffer. He also said that
Canadians must be acutely aware of what
is happening on the international scene, in
places such as Australia and New Zealand.
The Australians are moving large
quanitities of beef out of the country at low
prices.
"The Canadian market at any time is
just a drop in the bucket, it's relatively
small in comparison to world markets," he
said.
The one bright spot is that consumers in
Canada are increasing their use of beef in
the diet. "Canadians have virtually
doubled their beef consumption in the past
30 years."
"When you want something fast to eat,
you vat beef or poultry" said Williams.
"The trend to convenience food is very
important, every other meal by 1980 will be
prepared and eaten outside the home."
Williams said beef producers should be
aware that in the near future 50 percent of
the beef eaten will be of manufacturing
quality.
He said as the number in low income
groups increases, the amount of manufact-
1PG. 14. THE RURAL VOICE/FEBRUARY
uring quality beef eaten goes up too.
"There will be tremendous pressure
from consumers to hold the price of
manufacturing beef," said Williams. "You
can change the price of steaks, but you
can't change the price of hamburger."
"We can't produce enough beef for our
own needs," said Williams.
In 1976 the United States imported 84
million pounds of Canadian beef, and 671
million pounds of Australian beef.
Williams said the effects of government
intervention must be carefully monitored.
Price support programs can be a great
advantage in time of difficulty. "but we
now know these support programs
inevitably lead to increased production
costs" said Williams.
Williams said price support programs
also allow unprofitable farming operations
to continue, encourage a dependency on
one area of production, and affect
competitive pricing.
He said Canadians are in danger of
exporting a packing and processing
business to the United States, because of
current marketing practices.
"We're losing the top end of our
industry," said Williams.
"The packing and processing industry is
in trouble, particularly in the west, five
plants have closed, leaving only three in
operation.
Williams said when feeder beef is sold to
the United States, the percentage shipped
back as finishe cuts constitutes potential
processin and packaging business lost.
He said selling feeder cattle to the
United States was good business practice
on the part of the individual farmer, but
"damn stupid for a country."
Williams said another factor contribut-
ing to low beef prices was the power
wielded by large retail chains.
"They begin to dictate to the market -a
continually depressing influence on the
market," said Williams.
"In my opinion the increase in
production costs in the long pull are much
more important than short term price
fluctuations," said Williams. "Production
costs are driving the whole system up and
causing increases in costs throughout the
whole system."
Williams warned that if there is no long
term planning for the beef industry,
eventually the government would be forced
to adopt land policies that would allow
them to become landlords.
Williams compared the cattle industry to
the state of the western grain industry 10
years ago - "it's in an awful mess right
now.
"The beef producer is falling behind all
the time," said Williams. "Prices are
rising, but they're not rising in step with
the increases in other food products."
1978.
Bean Board getting
close to goal
After a struggle to find enough beans.
the Ontario Bean Producer's Marketing
Board is clo' a to filling its forward
contracts for the 1977 crop. Lloyd Taylor.
board chairman said in an interview in mid
January.
Expecting a record 2.5 million bag crop,
the Board had forward contracted 850.000
bags at 100 pounds per bag. That,
however. was before heavy fall rains
delayed harvest and left most of the crop
rotting in the fields and the board found it
had less harvested beans than it had
contracted to sell.
Taylor said 800.000 bags are accounted
for in the elevators and another 70.000
bags have been reported by farmers.
However, many of the beans are not top
grade and it is expected up to 150.000 bags
are not of canning quality.
Board manager Charles Broadwell of
London told the Farmers' Week at the
agricultural college in Ridgetown there are
a "substantial" number of beans being
held back by farmers for planting this
spring.
"We feel there are over 100,000 bags
being held back." far more than the
required 60.000 bags. Broadwell said.
adding that hybrid seed producers already
have made available 40,000 bags.
Broadwell said the farmers are prevent-
ing the board from meeting its contract
requirements.
British canners. Ontario's largest
market. have agreed to accept discolored
beans with top grade taste and texture
instead of top grade white beans.
Broadwell said. The discolored beans are
selling at a 50 -cent -per bag discount.
Broadwell said there is the possibility
some customers will refuse to accept
anything other than the top grade white
bean.
Michigan, Ontario's major competitor in
foreign markets. had a large crop despite
poor weather last fall. Broadwell said. but
like Ontario has experienced bean
discoloration.
Ontario seed prices this spring are
expected to run about $25 a bag. well
under $45 some producers paid in
Michigan. Broadwell said.
For the 1978 crop, the board is going to
establish a two -pool grading system
because it anticipates some residual.
quality problems, he said. The number one
pool will involve only top -grade beans in
color, taste and texture. The number two
pool will involve all other grades and will
be discounted.
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