The Rural Voice, 1979-01, Page 19Rural news in brief
Cattleman
challenges store
on ground beef prices
Alex Connell, President of the Ontario
Cattlemen's Association has challenged
the statement attributed to Chester Wilcox
Corporate Meat Manager, Dominion
Stores Ltd. that regular ground beef could
go as high as $2.00/1b. unless the Federal
Government increases beef import quotas
for 1979. Mr. Connell, a beef producer
from near Palmerston, Ontario saki: '`The
statement is misleading in that it implies
that the price level for ground beef is
determined primarily by import controls.
This is simply not the case since price
relationships among the various cuts of beef
are reasonably fixed and the general price
level both for cattle and beef in North
America is primarily a function of supply
and demand."
Imported beef, which comes primarily
from Australia and New Zealand repre-
sents approximately 7% to 9% of per
capita beef consumption in both Canada
and the United States and is used primarily
in the institutional trade as opposed to the
retail trade. A study conducted a number
of years ago indicated that ground beef
sold through major retail chains was
primarily derived from the meat cutting
operation where high quality carcasses are
used. Less than 20% of ground beef being
sold over the retail counter originated from
imported product. Mr. Connell concluded:
"The price level from ground beef is going
to be determined by the general price
level for carcass beef."
Mr. Connell went on to say; "Cattle
numbers have been declining not only in
North America but all around the world
since 1975 because of heavy supplies and
extremely low prices. The year 1978 will be
the fourth consecutive year of herd
liquidation because of low prices. Few
consumers seem to realize that beef prices
were so depressed from 1975 to 1977 that
the current price levels, even though
markedly above last year, are no more than
adequate to renew interest in the cattle
business and to provide enough financial
incentive to cow herd owners to begin
rebuilding breeding herds. Since it takes
one year for a decision to materialize in the
form of a new born calf and a further two
years to get that calf readied for market,
consumers can expect dwindling beef
supplies for at least three more years. The
situation has been similar in every other
major beef producing nation in the world."
Massive increases in beef imports would
be a signal to cattlemen not to expand
breeding herds and theinevitable result
would be still lower supplies. Reasonable
import levels should not discourage herd
expansion.
Mr. Connell concluded by saying; "It is
ridiculous to say that Ottawa's policy is "to
hell with consumers." Many beef pro-
ducers have the same feeling about
Ottawa's attitude toward cattlemen. The
federal government has indicated that it
would control beef imports for the next
three years. Cattlemen in Canada, through
their provincial and national Associations,
have been seeking a long term and
permanent import policy for beef so that
producers can make long range production
decisions and consumers can know what to
exnect."
Topical speakers
at UofG
conference
Four current topics affecting agriculture
will be featured at the Ontario Agricultural
College (OAC) Agricultural Conference,
January 3 and 4.
The conference, called Agriculture Con-
cerns All of Us, is sponsored by OAC, the
University of Guelph, and the Ontario'
Ministry of Agriculture and Food.
More than 800 people, including prod -
Merry Christmas
B& B
PALIN MACHINE
. Wrought Iron Work
. Snowblowers
. Machine Work
. Welding
. Gen. Repair
1/2 mile north of Seaforth
Phone
527-0114
THE RURAL VOICE/JANUARY 197Q P(:. 19