The Rural Voice, 1983-10, Page 20FARM NEWS
MacAuley says supply management for hogs
"The price of pork is too low."
This is how Mark MacAuley of the
Bruce County Pork producers began
his presentation on supply manage-
ment to the directors of the Huron
County Pork Producers' September
meeting.
"Last week's pool price was
$67.11," he said, "Yet the present
cost of production is $91.20. A
difference of $24.00!"
He explained that the pork business
has recently become highly capi-
talized and technicalized. This has
had the positive effect of making the
industry more efficient and made
cheap pork available to the consumer.
The negative affect has been the
destruction of the traditional high/ -
low pork cycles. The reason is that
high capitalization locks the producer
into production and there is no longer
the "inner" and "outers" that caused
the old cycles. Manual labour is also
no longer a limiting factor as in-
creased technology and machinery
Peebles
Farms
Yorkshire/Hampshire
Hybrid Gilts
Purebred Yorkshire &
Hampshire Boars
R.O.P. Tested
DOUG PEEBLES
R.R. 2, Atwood
356.2369 356-2230
1n. time - lfterhp.m.
PG 18 THE RURAL VOICE. OCTOBER
have enabled one farmer to manage
very large numbers of hogs. Mac-
Auley declared "the future of the
pork industry appears to be heading
for long term over -production and
low prices".
He warned the farmers that poultry
farmers faced the same problem
twenty years ago. Canadians learned
to cope but in the U.S. the family
poultry farm no longer exists. "The
size of the farms are so large in the
U.S. that four or five farms could
supply all of Canada with eggs." He
explained.
In arguing for supply management,
MacAuley warned that government
subsidies are only a crisis solution, a
momentary solution to financial col-
lapse and misery and an avoidance of
embarrassment to governments. He
also cautioned that the political
realities are that both Federal and
Provincial governments are becoming
increasingly tight-fisted. The federal
government is very negative toward
stabilization and although the provin-
cial government is more positive, they
would expect the federal government
to pay half. MacAuley proposes that
the solution to the crisis is supply
management for the domestic market
and open production for the export
market. "This is the system that
works for tobacco, milk, poultry,
OPEC, Ontario Hydro, Bell Canada,
trade unions, professional associa-
tions etc." he said.
In conclusion, MacAuley claimed
that supply management would stabi-
lize price and production, permit
rational growth, allow realistic finan-
cial planning, create less risk for new
entries and people leaving the busi-
ness, provide reasonable and steady
profit and preserve the family farm.
When MacAuley was questioned
about waiting to see a specific supply
management program before getting
into the discussion of such a complex
issue, he replied, "We're the ones to
discuss this and begin designing a
prototype. We're the ones to benefit
from it and it will be up to us to get to
work on it."
Art Houghton, Director of Kincar-
dine township, who accompanied
MacAuley, explained that "the
OPPMB has the expertise to develop
this kind of program. WC%e got to
1983
ask them to develop a prototype we
can look at."
Adrian Vos replied that the pork
producers looked at the issue of
supply management two years ago
and had turned it down. "We have a
good chance of having our income
insurance program accepted and that
will solve these problems." Vos said.
After the meeting, Houghton ex-
plained that he, MacAuley and John
Bryce, chairman of the Bruce County
Pork Producers were travelling to
their neighbouring counties to make
this presentation to keep alive the
discussion of the supply management
issue. "Something will have to be
done eventually," he said, "The
question is can we accomplish it in
time to preserve the family farm?"
Dublin area pork producers want
the hog assembling facility in Dublin
to be changed from a sub -yard to a
full yard. A petition circulated among
area producers has gathered numer-
ous signatures in support of this
change.
John Aarts, past -president of the
Huron County Pork Producers and
Gary Van Loon, a director of the
Perth County Pork Producers pre-
sented their desire to have the change
made at the yard to the directors of
the H.C.P.P.A.'s September meet-
ing.
The sub -yard is now a five day yard
with a regular flow of hogs. The
volume is approximately 2300 hogs
per week or 10,000 per month. There
has also been selection of approxi
mately 66 heavier hogs for export t„
the U.S. market. The recently up-
graded yard has facilities for hold-
overs.
Aarts said, "Most of the hogs at
coming from a 10-15 mile radius o1
Dublin with about 250 produce
shipping through the yard." Asked it
the full yard would remain a five dad
yard, Van Loon explained that would
be up to the OPPMB, "We are jt
asking for a yard; the number of dad
is up to the yards committee."
The Huron County directors sup
ported the presentation by passing a
motion requesting the OPPMB to
investigate the feasibility of designa,
ing the Dublin sub -yard a full yard.12
talent' Bolton