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The Rural Voice, 1986-09, Page 76NEWSLETTER - Perth County Pork Producers Garry Van Loon, R.R. 2, Dublin, Ontario NOK 1E0 FROM THE OPPMB Hog Prices Hog prices shot up to more than $200 per hundred Kg ($90/cwt) in June and have remained strong since then. Irv. Stinson, OPPMB Sales Manager, reports that marketings for the past five weeks have been down about 8 per cent from last year. There is an iden- tical situation in the U.S. and the result has been record high Ontario prices almost on a daily basis. The quick rise in hog prices caught everyone by surprise. The retail trade is still trying to adjust to the change. If consumers are willing to keep buying then hog prices should remain relatively high. For producers, the current market is good news. Margins have been very tight over the past few years. The quarterly margins for the years 1985-1986 have been either negative or a very small positive in every year but 1982. Margins shown in the graph are the Ontariop price less the medium cost of production per cwt using the OPPMB cost of production formula. The increase in hog prices during June and July has done much to strengthen the trend towards pro- fitable hog production. Un- doubtedly many producers are making money starting with June prices. The profit will likely be us- ed to pay down debts and catch up on needed (and long delayed!) repairs to buildings and equip- ment. Tripartite Stabilization In Ontario about 3,800 pro- ducers signed up for the market hog plan where premiums are deducted by the OPPMB. Another 1,400 producers are on the weaner section of the plan. Only after a complete month of premium col- lections will an accurate picture of the sign-up emerge for Ontario. Participation is known to be high in the west with 80 per cent of pro- duction in Alberta, 90 per cent in Saskatchewan and Manitoba. Premium deductions of $2.90 per hog were begun for Ontario producers after June 30 and as the finalized applications were receiv- ed from the Ontario Ministry of Agriculture and Food. The final 76 THE RURAL VOICE registration date was so close to June 30 that it was not possible to have many of the applications in the Board's computer on the first week. Producers are advised that just because they have not yet had a premium deduction does not mean that their application was not received. More likely, it has just not been processed. Premiums are due on all market hogs shipped on or before June 30. Producers whose premium deductions began after the first week in July will owe premiums on those hogs shipped between June 30 and the week their deductions began. These "retroactive" premiums will be collected starting on Friday, August 1. A message will appear in the message box of the settlement form whenever "retroactive" premiums have been deducted. Participation in Stabilization Still Possible It is still possible to sign up for stabilization as a late entrant. The penalty provision for late entry on- ly applies in the case of a pay -out. At current prices and costs, no pay -out is called for as margins are well above the guarantee level. In fact, the current good prices will be part of a very useful support level for the next five years. A producer signing up now would be eligible for full payment after one year. Think about it! The penalty for late registration is a reduced portion of any pay -out for a period of four quarters. For example, a producer signing up during the third quarter of 1986 would have premiums deducted starting with the fourth quarter of 1986. Pay -outs for that producer would be limited to 25 per cent for the 4th quarter of 1986, rise to 50 per cent for the first and second quarters of 1987, to 75 per cent for the third quarter and to 100 per cent for the last quarter of 1987. A producer signing up in the fourth quarter of 1986 would follow a similar schedule but delayed by one month; premiums would be deducted in the first quarter of 1987 and pay -out eligibility for that quarter would be 25 per cent and so on. Canadian Pork Council The Canadian Pork Council held its annual meeting in Charlot- tetown, P.E.I., on June 27 and 28. Elected president was Bill Vaags of Manitoba. Vice presidents are Tom Smith (Ontario) and Laurent Pellerin (Quebec). Ontario's representatives to the CPC are Tom Smith, Dave McDonald, Doug Farrell, and Howard Malcolm. The next meeting of the CPC will be in Ottawa in early December. The CPC's activities are very similar to the OPPMB's except they are on a national scale. There are standing committees on pro- motion, research, grading and ROP. Some of the issues discussed were the Industry Study (a national look at the hog industry), the Nutrient Composition Study (a follow-up on the study completed by Dr. Steve Jones for the OPPMB on the nutrient composition of pork), P.S.E. (how much is of genetic origin and how much from faulty handling methods), and trade relations with the U.S. and other countries. The CPC operates on a levy of $0.03 per hog, or about $470 thou- sand. Ontario's share is about $139 thousand. There were additional levies in 1985 to offset the legal costs incurred in fighting the U.S. countervail actions. Canada Pork is a new development at CPC. On- tario's food service promotion program to hotels, restaurants and institutions has been expanded to become almost a national pro- gram. Provinces participating in the national promotion program pay an additional $0.05 per hog. Discussions are continuing on the prospects for similarly expanding Ontario's retail promotion pro- gram to a national activity. The cost of the retail program at a na- tional level is estimated to be $0.10 per hog. OPPMB Semi -Annual Meeting The OPPMB Semi -Annual Meeting will be held in Toronto's Skyline Hotel on Thursday, September 11th. The one day ses- sion is designed to keep the Board's 251 elected producer delegates and the secretaries and presidents of the 43 county associations abreast of recent developments.