The Rural Voice, 2000-12, Page 571
PERTH 11'R
County Pork Producers NEWSLETTER
A case for co-operation
Any opinions expressed herein may
not necessarily reflect the views of
the Perth County Pork Producers'
Association.
This column has been used very
often for an opinion page rather than
a newsletter. I have been as guilty as
anyone for that. This month, I would
like to offer some opinion as well as
outline some of the events the county
association has been involved in
lately.
Joseph W. Luter III, president and
chief executive officer of Smithfield
Foods Inc. gave a message to
shareholders a couple of months ago.
The world's largest hog producer and
pork processor completed its year-
end on April 30. Earnings were down
somewhat to $75 million from $94
million the previous year. Luter
explained that the decline in income
was anticipated as it went against
record high profits the year before
when processing returns had been
substantial due to hog prices that
were at 50 -year lows. Luter said the
company's 1999 and 2000 returns
demonstrate the importance of
vertical integration as hog and pork
processing returns work to offset
each other during periods of price
bottoms and tops. "By participating
at both ends of the business, we can
remove (the impact of)...peaks and
valleys," he said.
This giant in the industry, who has
also just made a bid for IBP, the
world's largest meat processor, has a
model for growth. It is vertical
integration. They pursue it
unapologetically, firmly preaching to
shareholders that it is the best way to
succeed in the food chain. In some
ways it is difficult to argue with
them. Integrated chains are
consumer -driven, focused on quality
and able to respond quickly to
challenges. Information flows freely
between sections of the chain and
compliance with overall goals is
virtually assured. And the real
clincher is the ability to absorb price
fluctuations between sectors because
producer and processor have the
same owner.
We in the Ontario pork industry
have an idea for a different kind of
model. It is outlined in a recently
released Vision Statement for the
Ontario Pork Industry. Really, it is
not that different. We want to be
consumer -driven, focused on quality
and capable of profitably addressing
market opportunities. We want to see
the development of strong
relationships between producers,
processors, government, input
suppliers and other stakeholders.
Those relationships will be the key to
co-ordinating information flow
between segtors, and developing
industry -wide planning and response
systems. We even want to tackle the
issue of price volatility. The
difference between the proposed
Ontario model and the Smithfield
model is that the sectors would
remain independent. This is so
fundamental, and it speaks to the
heart of most every farmer.
How we achieve this model is
almost a contradiction. To maintain
an independent production sector we
have to become interdependent. We
have to buy into the concept that we
will be successful only as our
processor partners are successful.
The reverse is also true. It will
involve communicating more
information than we are comfortable
with. Forecasting production and
abiding by that forecast will become
Jim Van Herk, President
519-595-4863
• The Rural Voice Is provided to Perth
County Pork Producers by the PCPPA.
necessary. Hog quality specifications
will be driven back down through the
chain that may be different than we
are used to. Too much to swallow
some will say! I agree, it will not be
easy, but the Smithfield alternative is
a much more bitter pill in my
opinion.
The Perth County Pork Producer
Association has a "Donate a Hog"
program. Association member Julie
Natywary heads up the committee.
She reports that four county food
bank organizations have received
product recently from hogs donated
by producers. Processor, Walnut Hill
provides its services at a reduced rate
to help the program. Our thanks to
producers for contributing to this
very worthwhile project. Julie's
telephone number for those wanting
to donate is 519-595-4754.
Another venture that the county
participated in was a Harvest Tour
conducted in October. The BBQ
committee provided Teriyaki on a'
bun to hungry travelers. Producer,
Fred Groenestege also opened up his
barn as a stop on the tour.
Finally, during July, a fund-
raiser for the Stratford Museum,
called the Flavours of Perth saw some
directors at a booth selling sau age
on a bun. The above are examples
of how, at a local level, the
association seeks to promote pork
and contribute to the well being of
the community.0
— Submitted by Larry Skinner
PERTH COUNTY PORK PRODUCERS'
PORK PRODUCTS
• Smoked Pork Chops • Fresh Pork Chops
• Stuffed Loin Chops • Smoked Sausage • Smoked Cheddar
Sausage • Bacon Burgers • Teriyaki Pork Steaks
• Vittorio's BBQ Sauce
AVAILABLE FROM:
Steve Hulshof (Kinkora) 348-8167
Martin van Bakel (Dublin) 345-2666
Walter Bosch (Monkton) ...356-9000
Ted Keller (Mitchell) ...348-9836
DECEMBER 2000 53