The Rural Voice, 1981-08, Page 15Beef producers, at a recent meeting, express their concerns
on continued low farm -gate prices. And what they can do about it.
segment of Canadian business and most
of these bankrupticies are due to poor
management and poor business decis-
ions. The manager of OCA'. Charles
Gracey stated that "the problems of
today are still problems of poor manage -
Harkness angrily told the audience he
figures he runs a reasonably tight
operation and in 1980 he raised 700 head
of cattle and only lost three. But his direct
operating loss in 1980 was $70,000. or
approximately $100. per head. In 1979 his
loss was not quite that large. He feels he
is in a better position than younger
producers and he can handle two years of
this kind of loss, but not a third.
The number two problem, according to
the brief, is there is a reduction in
competition in the meat packing industry
now that there are fewer meat packers.
At the same time, there has been a
greater concentration in market power by
the retail chains. The OCA told the group
that "perspective is lacking in this
statement." and yet there are figures
available which show the mark-up on beef
in the retail stores has steadily increased
in the past five years:
In 1977 the mark-up per Ib. was .21c -
33c,
In 1978 the mark-up per Ib. was 33c - 56c
1979 the mark-up per Ib. was 68c - 78c,
1980 the mark-up per lb. was 85c average
and
and in 19tl1, the mark-up per Ib. was
$1.00/lb. average.
Last fall, the OCAG noticed the
increase in cattle coming into Ontario
from the U.S: 7,000 in November 1980,
16,000 in December, 1980, 25,000 in
January 1981 and 15,000 in February,
1981. The group contacted Eugene
Whelan and were told this was a
temporary situation and would last only
about six weeks. However, the imports
continued and as a direct result the price
for Canadian producers dropped five to
eight cents per pound. The OCA told the
Action Group they were out -of -line in
going over their (OCA's) head to Ottawa
to talk with the Federal Agricultural
Minister.
Harkness went on to say: "The gut
issue here tonight is profitability. The
OCA does not see that the beef industry
is no longer viable. What we need is a
reduction in interest rates and a decent
price for our product. We will not get
these things through the present Ontario
Cattlemen's Association. You will need
to support a more aggressive
organization of beef producers."
"What we need is total supply
management, closed borders and the
price of beef based on the cost of
production." Harkness said, drawing
loud applause from the audience.
"Some farmers are strong supporters
of a free enterprise system. But what is
free about it?" he asked. "We have the
option of going broke."
Cattlemen can register their dissatis-
faction with the OCA by requesting a
refund of their check -off payments.
Usually about five per cent of the
producers request this refund, but in
1980 the number of requests was up to
6.2 percent and so far in 1981 the
requests have jumped to 7.8 percent.
Harkness noted: "The OCA must be
blind if they cannot see that there is
dissatisfaction amongst its members."
However, Dan Pope, Chairman of
OCAG, still feels that the OCA is a viable
organization. The OCAG has already
changed one-third of the directors on the
OCA and is hoping to make more
changes. He urged all beef producers at
the meeting to go back to their counties
and start campaigning to elect an OCAG
supporter as a director to the OCA. "Do
not withdraw from the OCA," Pope
adivsed. "If a director is not doing what
you think he should be doing, then vote
him out of office."
One farmer recommended the OCA
checkoff should be increased five times.
Then there would be enough money to
hire a full-time lobbyist to go to Ottawa
and keep the politicians alert to the beef
producers' problems.
in a letter given to each person
attending the meeting. Harkness asked
beef producers to write to both provincial
and federal Ministers of Agriculture and
let them know what has happened to their
equity position over the past two or three
years, and to say if the bank has been
requesting more security for loans, or if
their operating credit has been reduced.
"Tell them what your operating losses
have been and how much you have been
drawing from your operation to cover
living expenses."
Harkness advised: "Until our elected
representatives get a true picture of how
serious the situation is, it will be difficult
to implement any changes in our beef
marketing system."
One of the main purposes of the
meeting in Harriston, according to
Harkness, was to get signatures on a
petition of support for Senator Harry
Hays, chairman of the senate's
agriculture committee, which is working
on a national beef marketing plan. "By
signing the petition, you are not voting
for a marketing board. You are only
voting to ask for the development of a
plan to be presented to beef producers,"
Harkness said.
The petition outlined the ingredients
for a successful marketing plan for beef,
such as: (1) allow producers to recover
their costs of production, (2) provide
adequate return on investment, and (3)
provide beef farmers with incomes
commensurate with their management
abilities, hours of work and efforts to
produce.
Several copies of the petition were
circulated at the hall and a number of
beef producers took copies home in order
to get other signatures. Over two
hundred memberships in the OCAG were
sold at the meeting.
ALFRED
KNECHTEL
Spray Painting
Ltd.
—SPECIALIZING
IN FARM BUILDINGS—
I'l
(519) 669-2638
R.R. 2 WALLENSTEIN,
ONTARIO
THE RURAL VOICE/AUGUST 1981 PG. 13