The Rural Voice, 1999-03, Page 65PERTH ifilk
County Pork Producers NEWSLETTER
John Nyenhuis, President
519-393-6539
• The Rural Voice is provided to Perth
County Pork Producers by the PCPPA.
Trouble brings active annual meeting
Any opinions expressed herein may not
necessarily reflect the views of the
Perth County Pork Producers'
Association.
Our County's Annual Meeting was
held at the Mitchell Community Centre
on January 28, 1999 with 200 people in
attendance. The delicious supper was
served by The Rose and Crown in
Mitchell. The guest speaker was Gary
Ballagh who spoke about the humorous
stories of life. He mentioned he had
farmed in the era of high interest rates
and told each one of us that there is life
after farming and you may even enjoy
it.
John Nyenhuis, our best president
ever, spoke on our rally to Toronto. He
thanked all those related industries that
supported us, be it financially or any
other way. Even our local MPP Bert
Johnson went out of his way to arrange
the event at Toronto.
John thanked our representatives at
the Board level Clare Schlegel and John
Crowley for their time and dedication.
Special thanks to John Crowley for his
years of service as he is stepping down.
He will be missed. The board worked
diligently to move our hogs during this
past strike at Quality while we were
inundated with hogs here and on the
States side.
Yes we had 12 weeks c disastrous
prices below $1 per kg. Where is the
economist who stated we are moving to
a new plateau in commodity market and
prices will be excellent for years to
come? He is probably in hiding.
Many thanks to all our outgoing
Directors for their past years of service
and we welcome all the new Directors.
It seems interesting that when hog
prices are good, we may only get a
couple of resolutions at our annual
meeting but lo and behold when the
prices are poor, they seem to come out
of the woodwork. This year we had
eight to deal with in Perth County. They
are as follows:
1. Whereas the margin between
producer and processor has been
shrinking year over year on average
compared to a rising margin between
processor and retail, and
Whereas hogs sold as a commodity
will continue to feel downward
pressure;
Therefore be it resolved, that as
producers we explore methods of
selling that would more adequately
capture the value of pork sold to retail.
2. Whereas the OPPMB is the
representative of Ontario pork
producers with relationship to pork
related issues. and
Whereas other groups of
organizations weaken Ontario Pork's
position by promoting their own
agendas;
Therefore be it resolved, that we
support Ontario Pork in their
endeavours and communicate to other
groups that their concerns be channeled
through Ontario Pork.
3. Whereas the future contract price is
settled in the next month of futures;
Therefore be it resolved. that the
current future month can be settled on
the active month up until the 15th of
that same month.
4. Whereas weaner producers are
unable to capitalize on forward selling
through OPPMB;
Be it resolved, the OPPMB look into
a way for weaner producers to capture
that market.
5. Re Pork Producer Investment
Whereas processor/slaughter of live
hogs in the Province of Ontario is
severely under capacity, and
Whereas Ontario live hog production
is at risk of forced downsizing of 25 to
50 per cent due to trade sanctions and/or
border closings on live hogs, and'
Whereas a large portion of Ontario
live hog production has been unable to
obtain a fair share of the
wholesale/retail price of pork;
Therefore be it resolved, that
OPPMB allows and administers a
voluntary financial checkoff of
participating hog producers and forward
such to the Ontario Hog Producer
Association to be used as the investors
see fit to invest in the meat processing
and retailing business in Ontario.
6. At our last meeting in Huron County
we came up with this resolution. We are
sending it to our AGM in Toronto in
March. We would like each county to
carefully look it over and we would
appreciate it if you would vote
positively for it or better still join us in
presenting this resolution there.
Whereas some producers desire to
have direct contract with the packer by
negotiating contracts with these
packers, and
Whereas the recent strike at Quality
and the closure of Thorne Apple and
Schneiders have clearly shown the risk
to producers of industry concentration
among processors, and
Whereas some of the diverse
marketing options available do not
benefit the industry but actually
fragment our collective marketing
power:
Therefore be it resolved. that Ontario
Pork take control of all contracts and
regain control as the sole seller of all
Ontario hogs to the benefit of all
producers.
7. Whereas other commodities offer
forward contracts which include a
locked -in basis;
Whereas more producers would take
advantage of a forward price program
which provided a locked in basis:
Therefore. be it resolved that the
OPPMB provide and forward price
program which would allow producers
to know exactly the price they will
receive when the forward contract is
filled.
8. Whereas the current formula uses the
top Indiana -Illinois price as a basis for
our Ontario price and this does not reflect
supply and demand in Ontario. and,
Whereas our cost of production is
not accounted for.
Therefore, be it resolved that we
work toward finding a truer Ontario
price. and that consideration be given to
incorporating cost of production.
All eight resolutions were discussed
and voted upon.
I want to ask for total Pork Board
control even with the current contract
system. If we as producers can't Lind a
common thread to keep us together
whether we ship 10 hogs or 1,000 hogs
at equal price for equal value,
regardless, we will fragment the
industry to the point where producer
will be pitted against producer for lower
and lower prices. Our industry will not
survive.
Four directors including long time
associate director Willy Keller. attended
an information session with our MP and
MPP which was organized by our OFA
fellow farmers. We asked for continued
assistance on the Ontario Whole Farm
Relief Program and support for hog
farmers on the $1.20 to $1.40 loan
which we as producers would pay back.
1 also thanked our MP John Richardson
for disallowing Bank Mergers. If
government doesn't keep certain control
over businesses. they will get too large
and powerful, and rip-off the primary
producer and the consumer.0
— Submitted by Jack De Groot
MARCH 1999 61