HomeMy WebLinkAboutFarming '92, 1992-03-18, Page 9Fanning '92
FARMING ’92, WEDNESDAY, MARCH 18,1992. A9
Lower U.S. farm prices ‘bankruptcy’
prices, Ontario farm leaders say
“Low U.S. prices for agricultural
products are not efficiency prices —
they're bankruptcy prices,” says
Louis Balcaen, President of Dairy
Farmers of Canada.
“The huge Farm Aid Concert
being held in Texas on Saturday is
evidence of the dire situation facing
American farmers today,” he adds.
“It's also evidence of what would
become of Canadian poultry, egg,
and dairy producers if Article XI of
the General Agreement on Tariffs
and Trade (GATT) is replaced with
tariffs during this final round of
negotiations.
Farm Aid V took place at Texas
Stadium in Irving, Texas on Satur
day, March 14. Headlining the con
cert is country singer Willie
Nelson, who is also president of
Farm Aid Inc. He will be joined by
approximately 50 other musicians
including: Paul Simon, John Mel-
lencamp, Tracy Chapman, Kris
Kristofferson and Canadian artist
Neil Young.
Mr. Balcaen spoke at a Farm Aid
workshop on international trade
Friday, March 13 at the Texas Sta
dium in Irving Texas. He also
spoke at a press conference and
farmer forum immediately follow
ing the workshop. He was joined in
Irving by representatives from the
poultry and egg sectors.
Currently, under Article XI of the
GATT, a country is able to set
import restrictions for commodi
ties, which are subject to domestic
supply controls. In Canada, these
include poultry, egg and dairy
products. However, a recent pro
posal by GATT Chairman Arthur
Dunkel calls for total, or “clean”
tariffication, with the removal of
import quotas. “Some of our indus
tries would lose more than half of
their farms,” Mr. Balcaen notes. “In
fact over time, in some regions,
such as Atlantic Canada, produc
tion of some commodities would be
completely wiped out.”
As they met with US farmers,
Canadian poultry, egg and dairy
producers were calling on Prime
Minister Brian Mulroney to honour
his commitment to call President
Bush to discuss Canada's position
on Article XI.
“At our farm leaders conference
last month, the Prime Minister
committed the federal government
to a three-pronged course of
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action,” says Ron Drohomereski,
Chairman of the Canadian Broiler
Hatching Egg Marketing Agency.
“This was to include the delegation
to Europe, the development ot a
practical negotiating strategy, and a
delegation to travel to Washington
to meet with President Bush.
“Well, we're still waiting for the
last two of these commitments. We
understand the Prime Minister has
called Mr. Bush to discuss soft
wood lumber, and the Honda situa
tion; and the North American Free
Trade Agreement will be the sub
ject of a conference call this week.
We want to know where Article XI
is on his priority list — especially
since the GATT deadline is mid
April.”
Adrian de Graaf, Chairman of the
Canadian Turkey Marketing Agen
cy says the 40,000 farmers and
their supporters who rallied on Par
liament Hill on February 21 are
waiting for the Prime Minister's
response. “These are our liveli
hoods we're talking about.”
He adds Canada could not com
pete with subsidized, lower priced
American products that would enter
the country under tariffication.
“Input costs in the U.S. are signifi
cantly lower than here, and most of
the industries are vertically inte
grated, allowing them to cross-sub-
sidize — that is to take large losses
on some products in return for large
profits on others,” he says.
Waldie Klassen, Chairman of the
Canadian Chicken Marketing
Agency says Canadian consumers
would also suffer the effects of tar
iffication. “Consumers would see
extreme fluctuations in price, sup
ply and product quality. Currently,
the prices of poultry, egg and dairy
products have risen at a slower rate
than the Consumer Price Index for
almost all other food products.
Without supply management,
prices might drop initially, but the
increases could also be substantial
as we become subject to other
countries' agricultural concerns,”
he adds.
Ken Tjaden, Chairman of the
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Citizen
Canadian Egg Marketing Agency
says the 38,000 poultry, egg and
dairy fanners contribute more than
$10 billion annually to the Canadi
an economy. “Our commodities are
among the most viable of the agri
cultural sector. They also provide
valuable business to the processing
sector and to input industries such
as feed and equipment manufactur
ers. In fact, they are a vital compo
nent of many rural infrastructures.
Without the clarification of Article
XI, Canada's poultry, egg and dairy
producers will soon need a Farm
Aid concert of their own.”
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