The Rural Voice, 1983-06, Page 47Forward
Contracting
The Ontario Pork Producers' Marketing
Board (O.P.P.M.B.) is introducing a
program which will allow producers to
forward contract hogs. The Board be-
lieves forward contracting will be benefi-
cial to hog producers because it will
enable them to lock in proven prices and
so remove some of the uncertainty in
financial planning.
Under the program, which begins the
week of June 13, pork producers can lock
in a price seventeen weeks before
delivery. The service for hogs is unique in
Canada though it is available in other
commodities such as corn and soya
beans.
O.P.P.M.B. Chairman, Doug Farrell,
said the program will be a useful tool as
it can reduce some of the financial
uncertainty in hog production. "It will
allow Ontario producers to forward sell
hogs in a way similar to that offered by
the Chicago Mercantile Exchange. How-
ever. it will be based on the Ontario
market and you can contract for smaller
lots of hogs", he said.
Producers will be able to forward
contract hogs in lots of ten, with a
minimum of ten and a maximum of one
hundred. Hogs in excess of one hundred
will be allowed at the end of the week if
there is still room.
The price will be set by a tender system
held each Monday with packers bidding
on lots of two hundred hogs. The highest
priced lots will be filled first so the final
price for the contract will depend upon
the number of hogs offered by producers.
Producers will be able to phone a
special number to find out the size of the
contract and the possible price range.
Commitments from producers will be
accepted by phone from Tuesday until
Thursday at 3 p.m. on a first come, first
served, basis. The final price will be
announced on Thursdays.
Producers are expected to deliver their
hogs seventeen weeks after they accept
the contract. Contracted hogs will be
accepted at the O.P.P.M.B. assembly
yards on the regular shipping days.
Provision is made for late or early
delivery of up to four weeks but there will
be an increasing penalty for every week
early or late.
Producers who want to forward con-
tract hogs must sign a forward contract-
ing agreement with the O.P.P.M.B.
Copies of the agreement and more
information on the program are available
from the O.P.P.M.B. office in Toronto.❑
FRITZ CONCRETE FEEDER
— Concrete feeder: made to
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— Galvanized steel grate:
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— Zinc coated chains:
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feed
— Will not rust
— 6 piece construction easily
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— 12 hole feeder: will accom-
modate 48 hogs per feeder
— Galvanized lids available
SPECIFICATIONS
Approximate Weight — 800 lbs
Height — 40"
Length — 48"
Width — 34"
Visit our Booth at the
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RR 1 CHEPSTOW ONT. NOG 1K0 (519) 366-2661
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PG. 46 THE RURAL VOICE, JUNE 1983
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