The Rural Voice, 1989-11, Page 7FEEDBACK
the GATT agreement. Indeed, the
Free Trade Agreement has not yet
helped to correct the problem, but may
as subsidies are studied and we come
to an agreement that could alleviate
the long-term problem. This may also
happen if a new agreement could be
reached in the present round of GATT
negotiations.0
Harry Brightwell, M.P.
Perth -Wellington -Waterloo
In praise of our dairy system
In last month's Rural Voice,
Adrian Vos once again did his utmost
to give credence to Gord Wainman's
not -too -scientific thesis that pigs are
actually smarter than the Canadian
farmers who raise them or, should I
say, farmers who used to raise them.
Not only did he refuse to offer any
remorse or repentance for his unjusti-
fied, reproachful, libelous attack on
supply managed marketing boards, but
he embedded his foot even deeper into
his mouth by stating that "the U.S.
farmers sell their milk through the
capitalist method of supply and
demand." With statements like that I
think he should change the title of his
columns to Adrian's Myths and
Fables.
In both the U.S. and the EEC, the
uncoupling of producer support levels
from supply and demand without
placing limitations on production was
the main cause of the mountains of
surplus and chaotic marketing in the
international dairy industry. In both
cases a support price was set unrelated
to the cost of production or supply and
demand and a market was guaranteed
by government purchases of surplus
products.
With a guaranteed market at a
lucrative payment level, producers
increased production very rapidly and
dramatically, causing massive sur-
pluses. Any surplus was bought and
stored by the governments and later
dumped on the intemational market
with the taxpayers picking up the tab
for the losses. As the surpluses grew,
the international price plummeted and
the losses grew uncontrollably. In the
U.S. alone, the support program is
estimated to cost American taxpayers
approximately $1 billion annually.
In Ontario, production is controlled
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NOVEMBER 1989 5