The Rural Voice, 1978-08, Page 14High beef prices not hurting consumer demand
The higher beet prices that may eventually enable farmers to
recover from several years of losses. don't seem to be causing
consumer outrage that has been evident in the past.
Excellent public relations work by many beef spokesmen plus
increased understanding by some consumers of the plight of the
farmer may be the reason.
Charles Bracey of the Cattiemans Assoc. has been on CBC's
Radio Noon and elsewhere talking about farm input costs and
beef prices around the world.
At the local level. Bob Kerr of the Kent County Cattleman's
Assoc. spoke to the Chamber of Commerce in Chatham recently
explaining the beef farmer's case.
Consumers have been paying up to 70% more for their beef
than at this same time last year. They wonder why. Beef
spokesmen are explaining that the reason is simple Farmers
cannot afford to raise beef cattle at the prices offered during the
past three years.
Charts and graphs in a brief presented to the members of
parliament this past February. indicated that the large number
of cattle for slaughter can only come from a large cow herd
which was built up trout 1970 to 1974. During 1975. '76 and '77
there were more heifers slaughtered in Canada compared to the
number of steers and bulls. The trend indicated. then. in
February. that the numbers and prices would take a turn around
in the not too distant future.
The Huron Cattlemans Association then noted that it was
important that government and producers not over -react when
prices took a leap.
Consumers have been penny pinching but to date there has
been no talk of boycotting beef to force the prices down to a more
attractive level.
In fact consumers are buying just about the sante amounts of
beef as usual. Abattoirs in western Ontario are slaughtering to
capacity.
"We are working to capacity and have not seen anything
different from this year compared to others" says Russell
Coldstein of Al's Abbatoir in Hensall. "People who can afford to
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14 THE RURAL VOICE/AUGUST 1978.
buy heel will keep on doing so."
Beef producers themselves are just now starting to see the
light after years of losses. Bruce county the capitol of beef
G farming in Ontario. has not felt much impact from the increase in
beef prices yet.
2 to 3 Years
Brian 1 reland head of the Bruce County Federation of
Agriculture noted that it would definitly take at least 2 to 3 years
for farmers to regroup their losses.
"The way the prices have been farmers just could not produce
on their cow calf operation." Mr. Ireland says.
Many of the farmers lost 40 - 50% of their equity in the past
years. They have the same capital but as far as the bank is
concerned they are only worth half of what they were worth two
years ago." says the Bruce F of A president.
Farmers in Canada as a whole suffered a $408 million dollar
loss in equity in cattle farming between 1974 and 1976.
"You see other items going up like liquor but nobody
complains too much about that". he says "It's easy to blame the
farmer as he is the weakest link in the food chain".
One butcher in Huron county commented on the high retail
prices compared to the lower retail prices.
"The drop in beef prices this week has been passed on to
the retailers. It would appear that maybe thc processors would
need that extra money to pay for workers willing to work
overtime and for those they have to pay extra due to the strike
conditions at thc packers."
But large retail chains have contributed to rising beef prices by
taking a larger margin on sales. says Bob Kerr president of the
Kent County Cattleman's Associaton. Before April supermarkets
were taking an average of 25c per pound of the total. but Mr.
Kerr says now that margin has risen to 60c.
In the late 1960's and earlv1970's consumer bccf purchases
represente 21/2 per cent of disposable income. In 1976. beef
purchases dropped to 2 percent of disposable income followed by
another drop in 1977 to 1.85 per cent.
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