The Rural Voice, 1998-12, Page 6Pork price disaster
could change rural
communities
Farming is certainly an exciting
occupation and not recommended for
the faint of heart. The 1998 growing
season once again proved this. It
started out early with warm, dry
weather, then a late frost, then more
dry weather mixed with occasional
rain in some areas and more dry
weather in other areas that rendered
some expensive herbicides less than
effective and gave many farmers a
reason to re-evaluate their cropping
practices.
Some crops flourished with
occasional rains while others
shriveled. My own area did finally
get a nice rain in August that likely
helped the corn bushel weight but
gave the weeds in some soybean
fields an even bigger boost.
The harvest season was much
earlier than normal years. The yields
and quality in many cases were better
than expected, bit some were
disastrous.
With all this excitement in the
fields it was difficult to notice what
was going on with the pig prices.
However, this is even more exciting.
On June 22, a 235 -pound finished pig
indexing 109 was worth $157.45.
After the crops were harvested, if the
same hog was sold on November 6, it
would be worth $65.69. (This
included a 20 per cent drop in the
previous week.)
A farmer finishing pigs would
have paid about $50 for the weaner
pigs and spent $50 worth of feed on
it. That doesn't count hydro, interest,
insurance, veterinary expense,
building and equipment repairs,
trucking, board fees, grading fees and
GST. (I hope I didn't miss anybody.)
At the grocery store, pork
2 THE RURAL VOICE
Feedback
products are selling for the same
price in November as in June! As a
matter of fact, today the dressed
carcass price is 71 cents per kg.
whereas in the store bacon is $7.18
per kg., loin roast is $11 per kg., even
shoulder roast is $4.39 per kg.
I don't work in the packing
industry or the retail industry but I
can tell that these numbers don't add
up. A friend that does work in the
retail area tells me that there will
probably be more "specials" on pork
and these will be better bargains. The
abattoir that I deal with says pork
halves, cut, wrapped and frozen,
could get down to $1.87 per kg.
The message here is that
consumers should watch for these
bargains and fill up their freezers.
Meanwhile back at the farm,
things are almost as erratic as the rain
this summer. Some pig farmers arc
losing a lot of money and some arc
just losing some money.
A lot of pig farmers the last few
years have followed the advice of the
experts (most of whom don't have a
cent invested, and get paid no matter
how wrong they are), who told them
to expand and supply the world with
pork. It turns out the world can't
afford all this pork, and right now
these farmers are in a lot of trouble.
Some people reading this will say
it serves them right for being so
greedy, and in some cases they may
be right. However in a lot of cases
those pig farmers are the hard
working, honest people that you may
see at the hockey arena helping coach
your kids, or sitting on your local
council or doing volunteer work for a
local service club. They have
families to support and bills to pay
(lots of them).
They are involved in an industry
that is being manipulated more and
more by forces that see the farmers
and their hard work as a potential
source of profit for themselves. In the
U.S.A. these types of people have
managed to make many farmers
almost like slave labour running
contract barns.
Depending on how long this price
slump lasts, these pig farmers are
going to need some help. The
forecasters are suggesting at least six
months of these prices. One producer
suggested that a month of these
prices would put him in a big enough
hole, that it would take a year of
good prices to get out of that hole.
Six months would take him six years.
Meanwhile he can look at the more
militant competition over in Quebec
where they are reportedly guaranteed
a floor price of $1.55. That's a lot
better than 71 cents was (or even
lower).
My biggest concern is that if these
pig farmers are allowed to disappear
or to be taken over by large
corporations such as feed companies
or foreign integrators, then the local
rural communities will change
drastically, for the worse.0
Dave Linton
R.R.2, Blyth
The Rural Voice
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on issues of interest to
agriculture and rural life
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