The Rural Voice, 1990-04, Page 96PERTH tMk
County Pork Producers NEWSLETTER
Vince Hulshof, President
R. R. 1, Sebringville, NOK 1X0 393-5586
The Rural Voice is provided to Perth
County Pork Producers by the PCPPA
The following is a letter in reply to
the request made by the Perth County
pork producers to circulate a letter we
sent about the way Canadian hog pro-
ducersfeel about the American counter-
vail action on Canadian hogs and pork:
Dear Mr. Schlegel:
Thank you for your letter of Febru-
ary 13. I and my fellow pork producers
in Iowa always value meaningful ex-
changes of information between pork
producers in other parts of the world.
In direct response to your request for
such an exchange, we would be pleased
to participate in a meeting to discuss
further the countervailing duty issue.
Producers from Iowa have met with
Canadian producers on several occa-
sions. In fact, only a year ago my fellow
pork producer, Jerry Becker, met with
you and other producers from Perth
County. More recently, Don Gingerich,
a pork producer from Parnell, Iowa, who
serves as president of the National Pork
Producers Council, met with Canadian
producers to discuss this issue.
It's my hope that meetings of this
type will lead to a situation where U.S.
and Canadian pork producers will com-
pete equally. However, I believe at this
point Iowa producers would not be in-
terested in, nor benefit from, an addi-
tional airing of the countervailing issue
in our publication. Iowa pork producers
are very well informed about the par-
ticulars of the issue. Both points of view
have received exhaustive coverage in
association and commercial swine pub-
lications and popular newspapers. In
fact, we were pleased to provide an
opportunity for your organization to
comment on the issue in the May 1989
issue of our publication, the Iowa Pork
Producer. There has been ample print
space and broadcast time for producers
to decide upon a course of action. They
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have done so by supporting efforts to
seek countervailing duties against live
hogs and pork products from Canada.
Our association will continue to serve
them by its commitment to the duty until
such time as Canadian pork enterprise
subsidy programs are eliminated.
I would like to take this opportunity
to address again a few of the points you
raised in your letter. I agree that pork
marketing is more global now than ever.
If we should all have equal access to the
global marketplace, not to mention the
North American marketplace, why
should we not then compete in the pro-
duction area on equal footing? Our
producers benefit from no direct pork
enterprise subsidy program. The fact
that Canadian producers do benefit from
such a risk -bearing subsidy program, in
spite of the fact that a portion of the cost
is borne by producers, creates a funda-
mental imbalance in production cost
competitiveness .. .
I recognize the difference in size
between the pork industries in our two
countries. I believe, however, you un-
derestimate the impact your industry
has on ours. I can assure you, a change
in pork production of only a few per cent
has a dramatic impact on U.S. producer
profitability, reaching into the hundreds
of millions of dollars. Imports of subsi-
dized live hogs and pork products from
your country have had a direct and nega-
tive effect on the pocketbooks of every
pork producer in the U.S.
Our association supports strong ties
between the U.S. and Canada. We
welcome competition from pork pro-
ducers willing to compete on equal
footing. Consumers, and ultimately
pork producers, will benefit from this
competition. We believe your Tripartite
Stabilization Program not only places
U.S. producers at an unfair disadvan-
tage, but ultimately disadvantages your
own producers by reducing their need to
respond to true market signals. Produc-
ers who are unresponsive to market
signals will ultimately lose touch with
those who buy their products.
Again, I thank you for your letter. If
you have any questions, please feel free
to contact me.
Jon Caspers, President
Iowa Pork Producers Association