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The Rural Voice, 1998-11, Page 49PERTH +rifk County Pork Producers NEWSLETTER The challenge of change Any opinions.expressed herein may not necessarily reflect the views of the Perth County Pork Producers' Association. On September 30, in a Toronto hotel meeting room, Ontario pork producers arrived at another sign post on the road of change. Serecon Management Consulting Inc. presented its document entitled "Comparison of Marketing Systems for Ontario Pork". The opening section of the document' is entitled "The Challenge of Change" and contains some interesting insights into why we are at this point of self- examination. It also paints a picture in general terms of a marketing system that would create a favourable environment for the production and marketing of pork. Most people directly involved in the hog industry are aware that we have been reviewing and assessing our marketing system for almost two years. The initial phase of this was carried out by the Ontario Pork Industry Task Force. Their report was presented at the March 1998 annual meeting. Councillors at that meeting wanted to further assess the pros and cons of future options and Ontario Pork then hired Serecon to do just that. Serecon's recommendations were boiled down to two options and the options are really about the type of services farmers want from Ontario Pork and the degree of flexibility they want in the system. Solution 1 separates marketing services and universal common good services into two entities under the direction of one board. In other words, it would be similar to what exists now, but would allow farmers to opt out of certain programs and the relative fees if they did not require them. Solution 2 proposes more dramatic change. It is the creation of a separate, independent selling agent that would compete with other agents for farmers' hogs. Ontario Pork would continue to provide universal industry services such as research, consumer marketing and government lobbying. A key component of the second option is the board's authority to licence marketing agents and processors and ask that they provide market and health information on hogs sold. There are the proposals in brief. But why should producers act on them? And what do others like processors or potential investors feel? It seems apparent that many have viewed the Ontario hog industry as an industry in decline. In fact the numbers over the last 10 years bear this out. In the decade between 1987 and 1997, producers' numbers have decreased by one half and marketings by 17 per cent. There is little point in becoming defensive or trying to explain why we have lost production when other jurisdictions have grown. Valid reasons do exist for the decline, but we have to deal with the current reality and try to reverse the trend. According to Serecon's report, the pressure of global competition will intensify and tighten margins for Ontario producers. (Wonderful news with pool prices bobbing down around $1.10/kg.) Marketing boards across the country have been pressured to provide greater flexibility in terms of price discovery and vertically -co-ordinated linkages. These linkages in Serecon's words are believed to provide reduced John Nyenhriis, President 519-393-6539 The Rural Voice is provided to Perth County Pork Producers by the PCPPA transaction costs. facilitate forward planning and allow quality control advantages from base genetics through to value-added processing. In Ontario we should be prepared to act, not necessarily in the same fashion as other provinces, but in a way that best meets our needs. OPPMB chairman, Will Nap, say that a decision on our future course will have to be made no later than the March 1999 annual meeting. The status quo is not an option. I think that producer interests should be first and foremost in evaluating marketing options. Having said that, Serecon provides a broader perspective when it states, "a marketing system that is perceived to create a pro-business environment with potential for profit, will provide motivation to all market participants. Consequently, a hog marketing system that fosters co- operation and trust for the mutual benefit of all segments of the supply chain will be a system that provides the environment for long-term industry sustainability and growth". The above quote summarizes what should be our goal. A consistent effort to provide motivation to all industry players is what has been lacking. This does not mean taking a back seat as producers; it means that we will see ourselves prosper as the industry as a whole prospers. Let's try to figure out how to best do that.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: Fred de Martines (Sebr.) 393-6812 Martin van Bakel (Dublin) 345-2666 Walter Bosch (Monkton) 356-9000 Ted Keller (Mitchell) 348-9836 NOVEMBER 1998 45