The Rural Voice, 2005-01, Page 9National Farmers Union - Ontario NEWSLETTER
Ontario Office: R.R. 2, Godfrey, ON KOH 1TO - Phone: 613-273-5545
Email: nfuo@rideau.net Website: www.nfu.ca/on
Livestock crisis symptom of corporate concentration
The crisis facing Canadian
livestock farmers is a result of
excessive corporate concentration in
the meat packing industry, according
to Don Mills, a farmer from Granton,
Ontario who serves as Co-ordinator
of the National Farmers Union (NFU)
in that province.
In a presentation to the Canadian
Auto Workers .- Canada (CAW -
Canada) convention in Toronto
December 3, Mills said simply re-
opening the U.S. border to live
Canadian cattle will not solve the
long-term structural problems facing
family farms.
"The Bovine Spongiform
Encephalopathy (BSE) crisis has
certainly contributed to farmers'
financial difficulties," he pointed out,
citing a recent Bank of Montreal
study which pegged farmers' losses
since May, 2003 at about $5 billion.
"But farmers' share of the
consumers' food dollar has been
continually shrinking while
concentration of ownership in
food processing companies has
increased."
Today, two major U.S.-owned
packing companies, Tyson and
Cargill, control over 70 per cent of
the Canadian meat processing
industry, and while they are paying
rock -bottom prices to farmers for
Canadian cattle, they're still making
top dollar by exporting large amounts
of boxed beef to the lucrative U.S.
market. Canadian consumers also
continue to pay high prices because
of the domination of the market by a
relative handful of processors and
retailers.
"The closed border provided the
big packers with the opportunity to
drive down prices for Canadian cattle
while boosting profits from beef
exports," Mills said. "In 1984,
farmers earned 62.5 cents of every $1
of beef sold in grocery stores. By
2001, the farm share had dropped to
46 cents, and when the BSE crisis
hit, the farmer's share fell to only 21
cents. Meanwhile, packer gross profit
per head rose from about $75 to
about $210."
Mills said while the border closure
aggravated the crisis, the long-term
trend is clear. Net farm income has
declined steadily for the past
30 years, from an average of
approximately $30,000 per farm in
1973 to a loss of negative $20,000
per farm in 2003. While gross
incomes for farmers have risen over
that period, their costs have risen
even faster, squeezing the average
margin of family farms to
unprecedented negative levels. While
farmers posted huge gains in
productivity over that time frame, the
benefits flowing from these increased
efficiencies were captured by
corporate processors and input
suppliers.
The negative consequences of this
high level of corporate concentration
in the meat packing sector could be
repeated in the seed sector if
proposed changes to the Plant
Breeders Rights Act and other
legislation are allowed to proceed,
warned Mills, "At present, 10
companies `control one-third of the
global $23.3 billion global seed
market. They are pushing countries to
implement laws which limit farmers'
ability to save and re -use seed
on their own farms. This in turn
will lead to less control by farmers
and consumers over the food
system."
CAW delegates from across the
country later showed their support
for Canadian family farmers by
holding a beef barbecue under a
huge tent in Toronto's city hall
square. The Canadian -raised beef was
supplied by NFU members in
Ontario.
The NFU recognizes the need to
inform and gain support from groups
like CAW about the crisis facing
Canadian farmers and welcomes the
opportunity to work with all
Canadians on food issues.0
January 19 - The Right to Save Seed
A National Farmers Union discussion on the implications for
farmers of proposed changes to seed laws and regulations.
Upstairs Hall, Hensall Arena
7:30 p.m.
CaII 519-225-2163 or 519-349-2448 for more information.
Everyone Welcome.
For information on local meetings contact the following:
Bruce Local - Mathilda Andres 519-368-5675 Grey Local - Bev Schenk 519-799-5584
Huron Local - Stephen Miller 519-236-4958 Perth Oxford Local - Ann Slater 519-349-2448
JANUARY 2005 5