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The Rural Voice, 1999-03, Page 48capital," he said of the proposal first brought forward by Ken Palin of Kenpal at a meeting in Exeter in January. Van Bakel said while for weeks there had been no feeling anything was changing, at the Exeter meeting "It felt like there was some hope of doing something." Association president John Nyenhuis said it was important to keep as many of the smaller processors in business as possible. Most, he noted are family operations. "They're like the family farm." In addition, he said, the checkoff could help provide funding for the Progressive Pork Producers proposed plant in London. Producers also supported a resolution calling on Ontario Pork to take control of all contracts, despite some hesitation. One speaker likened the situation with pork producers to a labour union, wondered how effective a union would be if each member negotiated his own contract individually. Ontario Pork would be in a much stronger position to negotiate if it controlled all hogs in the province, he said. Kevin O'Rourke said having Ontario Pork take over contracting for all producers would help avoid a future situation that might see producers competing against each other for contracts and driving the price down. Harry Bardoel said contracts cause a problem of price transparency. "We don't know what is going on (with prices)", he said. Also supported, by a tight margin of 34-30, was a resolution, proposed by Matt Marui, calling on Ontario Pork to work toward finding a truer Ontario price for hogs, perhaps using a cost of production formula. In supporting the resolution, Larry Skinner said it is an attempt to get Ontario Pork to look at other pricing models. The Ontario auction is no longer functioning and perhaps the Indiana/Illinois price, on which the current formula is based, is not a good base for Ontario. Skinner proposed a resolution calling on Ontario Pork to explore 44 THE RURAL VOICE News methods of selling that would capture more of the retail dollar at the producer level. Over many years, producer margins have been dropping while wholesale and retail levels have been increasing, he said. He wondered if some benchmarks could be found to relate the producer price to retail prices for some cuts. "Perhaps we wouldn't always see our portion (of the price) go down and be expected to try to recover by producing more," he said. Other resolutions passed included those calling on other farm organizations to speak about pork issues through Ontario Pork; one calling on settlement of futures contracts in the same month as the sale; an exploration of a way to let weaner producers forward contract their pigs and one that would have Ontario Pork develop a contract under which a producer can forward contract hogs at a locked in basis, as is the case with corn or soybeans. A resolution calling on a one-year government moratorium on all new construction of hog barns was defeated as was one calling for Ontario Pork to develop new contracts based on recovering cost of production plus a profit, a move some producers felt would be an invitation to increase production. John Crowley, in his last report as a director on the pork board from Perth County, challenged the Ontario government to support the Ontario pork industry by backing an industry coalition putting together a loan program for hard-hit farmers. Other partners in the industry have agreed on the program but require the government to provide loan guarantees for the minority of loans that might go bad. The loan program would act like a floor price, Crowley said, kicking in when the price goes below $1.20 per kilogram and being repaid when prices are over $1.40. Crowley remarked on the tremendous variation in prices he had seen in his four years on the board, peaking at $2.20 per kg. and crashing to 36 cents. In his address, outgoing president John Nyenhuis said the happenings of the fall of 1998 were "the kind of history you wish you had only read about and not had to live through". He hoped the pork industry would have the foresight to put measures in place to keep similar collapses from happening in the future. Yet companies involved in vertical integration of the industry are still expanding and buying and shutting down small processors, he said. "I believe the North American integration movement has to be the scariest problem we face," he said. While pork prices hit devastating lows, there did not seem to be a backlog of pork and he wondered who had made all the money the farmers had lost. The challenge for the industry is to support the independent family farm because if the independent farms do well the large operators will too, Nyenhuis said. He warned that if a similar downturn happened again large contract operators will be hurt too because if Ontario Pork doesn't provide an alternative, the price of contracts will go down.0 Brighter days forecast for beef, hogs, not for crops Prospects for beef and pork producers should improve in 1999 but few bright spots are on the horizon for corn and soybean producers according to a futures manager with RBC Dominion Securities. Speaking at the Royal Bank's annual agricultural outlook meeting in Chesley, February 3, George Cornell, futures product manager said by mid-February another 150,000 hogs a week might be removed from the North American market because of shrinking herd sizes. By March, he said, the U.S. breeding herd should be down by eight per cent. However, he warned, prices might drop lower before they go higher. Packers have had record profit levels, he said and if the cash market goes up it would cut into their margins so they may not be willing to increase prices quickly. However, by next