The Rural Voice, 1999-04, Page 73PERTH irgit
County Pork Producers NEWSLETTER
The 1999 annual meting
Any opinions expressed herein may not
necessarily reflect the views of the
Perth County Pork Producers'
Association.
Do you know what the U.S.
definition•of free trade is? "Allow
unlimited exports but stop all imports!"
That is not a funny statement, but it got
a lot of laughs coming from the mouth
of Dr. Chris Hurt, an American
economist speaking to Ontario pork
producers at our provincial annual
meeting.
Dr. Hurt was reflecting on the
volume of Canadian hogs going south
during the strike at Quality Meats and
the American reaction to them. There
were allegations of our hogs driving the
price down. threats of closing the
border and urgings to get our labour
problems solved. However, when 1998
trade books closed, Canadian exports
amounted to two per cent of U.S.
slaughter. In reality, we had no
significant effect on price.
Dr. Hurt had a most interesting
presentation. Not all of it was good
news. First the good news! Hog prices
will recover by the year 2000. So when
you hear your generator kick in on
January I because Ontario Hydro
hasn't got its Y2K problems figured out
yet, you will know that good prices are
right around the corner. According to
Dr. Hurt, the hog cycle is alive and
well. Breeding herd liquidation is
taking place right now and there will be
a shortage of pigs next year.
Now for the bad news ... three per
cent of producers per year will continue
to leave the industry, profit margins
will narrow to almost zero for
"average" producers (the only profit
will be found in quality premiums), the
current expansion phase or adding
production will last until the year 2005.
After that, the only individual growth
will be through consolidation or buying
out existing producers. "Ouch" that one
smarts. Dr. Hurt concluded by saying
what the family farm. needs. Better
access to technology and information
will be critical for survival.
Gordon Colledge was another
interesting speaker. He delivered an
address on "Building the Organization
of Tomorrow" as well as providing
humorous after dinner entertainment on
Wednesday evening. I jotted down a
couple of points.
1. There is a link between positive
anticipation and our physical.
emotional and intellectual well being. I
took that as meaning we all need
something to hope for in order to stay
healthy.
2. We have framed our own little
window of how to do things and we
stick to trying to go through it no
matter what. He used the illustration of
how flies always seem to die at a
window sill. They are attracted to the
light and will expand all of their energy
trying to get out at that one spot. You
can open a door to encourage them to
exit but they will almost always go
back to the window. Can we (earn
something from flies?
Resolutions continue to be an
important part of policy development
for Ontario Pork. This year there were
some 55 of them up for debate. There is
no way to comment on all of them in
this newsletter even though there were
many good ideas. Resolution No. I
focused on contracting and was debated
most strenuously. It stated: whereas
some producers desire to have direct
contact with the packers by negotiating
contracts with these packers: and
Whereas the recent strike at Quality
Meats and the closure of Thorne Apple
Valley and J. M. Schneiders have
clearly shown the risk to producers of
industry concentration among
processors; and
Whereas no one should be afraid of
hogs of equal quality being paid an
equal price: 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.
I felt that Dave Linton from Huron
County spoke well to this resolution,
outlining the good and bad points of
contracting in his view. Debate soon
showed us, though, that there is much
confusion over the terms "take control
of all contracts" and "sole seller". Some
want an end to contracts while others
want only to eliminate the direct
contact with packers. Still others are
very protective of their freedom to
John Nyenhuis, President
519-393-6539
• The Rural Voice is provided to Perth
County Pork Producers by the PCPPA.
negotiate directly. At the %one. the
resolution was carried and so was a
following one that called for current
contracts to be renewed as OPPMB
block contracts when they cane due.
The next day a producer asked if the
meeting could have a resolution
endorsing Ontario Pork's current
program of Platinum contracts. pool
sales. block sales and direct contracts.
This.was agreed to and an eventual <ote
supported the current board plan. (It the
reader is confused now. do not feel
badly. Most people at the meting were
too!) It appeared that we had two
contradictory notions over the
contracting issue. At the end of the
meeting some producers were upset.
some were relieved and some were still
confused.
What were the positive outcomes of
the meeting? In my mind there has
always been a need for co-operation
amongst producers. This meeting
brought out very clearly a desire to pull
together under a strong board. I say this
despite disagreement on the contracting
issue. Producers in both camps seem to
want tighter controls and the board has
already agreed to become a more active
third party in direct contracts. To those
producers who feel all has been lost.
the board and Ontario Pork have an
obligation to expend maximum effort
on promoting Ontario Pork contracts.
These provide equality of access and
fairness to all producers. During the
meeting there were some confusing
moments. When it was over though. 1
had the feeling that we were leaving
with something for everyone. There are
options for every producer in Ontario,
and that is a good thing.()
— 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
APRIL 1999 69