HomeMy WebLinkAboutThe Citizen, 1996-01-31, Page 181
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PAGE 18. THE CITIZEN, WEDNESDAY, JANUARY 31, 1996
Pork Producers annual meeting
Big story-McCains buys Canada Packers
The purchase of Canada Packers
by the McCain family will be the
biggest story in the Ontario pork
industry for the rest of the decade,
Carl Moore, chairman of Ontario
Pork told the annual meeting of the
Huron County Pork Producers,
Thursday in Clinton. If, however,
the company wants Ontario hogs it
will have to pay for them.
Speaking four days before the
Ontario Farm Products Marketing
Commission backed Ontario Pork's
right to hold an open auction of the
province's pigs for both Ontario
and U.S. packers, Moore said the
McCain family's work with french
fries showed them to be one of the
top marketing companies in the
world and if they turn their mind to
wanting to export Ontario pork,
they could create a boom in the
pork industry.
In the meantime, however,
Michael McCain, company presi-
dent, is leading Ontario packers in
a battle for control of the pork
industry, Moore said. "Michael
McCain thinks that every pig that
drops in Huron County is his god-
given right to run down his Maple
Leaf Foods line, and he will decide
what to pay for it."
Moore claimed Wallace McCain
had used his political influence to
block the move to an open auction
for hogs last October. The Farm
Products Marketing Commission
stepped in to order a delay in the
open auction after complaints by
the packing companies that it
would hurt their competitiveness.
After lengthy negotiations and
commission hearings, permission
to move to an open auction (with
some conditions) was finally grant-
ed Monday morning.
Moore claimed the Ontario pack-
ing industry has grown very insular
when the high U.S. countervail on
Ontario live hogs meant they had a
$22-$23 advantage over U.S. pack-
Continued from page 1
"Can we cut 30-35 per cent? I
don't know." The Ministry must
survive to protect the interests of
farmers and rural people, Beaubien
said. "You cannot kill the Min-
istry."
OMAFRA staff are no longer to
provide secretarial and other ser-
vices to community groups. The
Clinton office has been turned over
to Ontario Reality Corporation, a
government agency, and the min-
istry must now pay rent on its Own
building. It may be that groups will
have to pay to rent the meeting
room in the building, he warned.
"In my 25 years of service to the
people this has to be our blackest
hour," the outspoken Humphries
said.
Henry Boot, HCFA vice-presi-
dent, issued a call to arms. "If we
stop now, what are we going to lose
next? We have to have a plan of
attack. Noble Villeneuve (minister
of Agriculture, Food and Rural
Affairs) said he would never cut
OMAFRA. It's time we took him to
task."
The difficulty of meeting the 35
per cent target was admitted by
Marcel Beaubien, parliamentary
assistant to Villeneuve, when he
spoke to the Huron County Pork
Producers annual meeting. Filling
in for Villeneuve, who was on
vacation, Beaubien first outlined
the need for the drastic government
action, stating government expendi-
ers in bidding for Ontario hogs. But
with the countervail now down to
$5, U.S. packers are ready to bid
for the Ontario hogs which many
see as superior because of their
leanness.
"We must get value for the quali-
ty we are producing in our trading
area," Moore said. That trading
area includes any packer within
trucking distance of Ontario farms,
whether large Ontario packers,
small Ontario packers or U.S. pack-
ers. In the U.S. midwest farmers
see their customers as any packer
within 800 miles. "Once the truck
is loaded, the distance isn't that
much different."
The Ontario pork industry has
gone through dynamic growth in
the past two years, Moore said. In
the spring of 1994 there were.
64,000 to 65,000 hogs being mar-
keted in Ontario. Today there are
80,000 pigs a week being marketed
to Ontario and U.S. packers
(10,000 a week to the U.S. in recent
weeks) as well as 10,000 to 20,000
weaner pigs a week being shipped
to the U.S.
Once the current dispute is over
the producers and packers will be
able to work out new marketing
arrangements to meet the needs of
both, Moore suggested. "The one-
pool, unidentified pig we had three
years ago is history," he said. "It's
in the museum right now.
"We intend to see what the cus-
tomers need, get the producers to
see what they need and bring the
two together," he said.
That will mean many different
markets. Moore suggested that
packers can date their demands,
both in the numbers of pigs and the
kinds, and contracts can be let
through the board to fill those
needs. It will give producers, large
and small, the same opportunities.
"The pig coming out of the door of
a Segregate Early Weaning opera-
tures had doubled since 1985.
But Dave Linton, RR2, Blyth,
took him to task. First of all, he
pointed out, the farm tax rebate is a
program to redress an inequity in
tax legislation and should really be
in the Ministry of Municipal
Affairs, not agriculture. That meant
the cut was really a 50 per cent cut,
he claimed.
He also asked Beaubien how
much OMAFRA's budget had
increased during the time when
government expenditures doubled.
Lion is probably no different than
that from a farrow-to-finish opera-
tion," he said.
Moore said the countervail on
Canadian hogs entering the U.S.
will likely soon be elminated.
Meanwhile the Canadian Pork
Council is asking the government
to publish details of the policy
under which some imports from
U.S. states that are declared pseu-
do-rabies free would be allowed.
These rules include use of sealed
trucks and incineration of manure
to keep the disease from spreading
'to Ontario. The National Pork
Council in the U.S. is threatening
dourt action if the rules (which
were worked out some time ago)
are not published to allow U.S.
exporters to see if they could meet
them.
Seven resolutions were passed at
the meeting. One sponsored by
Dave Linton of RR2, Blyth, sug-
gested Ontario Pork use a special
letter to signify tattoo numbers that
couldn't be read. One resolution
called on Ontario Pork to investi-
gate irregularities in the actions of
the Ontario Farm Products Market-
ing'Commission. A second resolu-
tion sponsored by Jody Durand of
Zurich asked Ontario Pork to
remain proactive in representing
producers of all sizes and not allow
groups such as the Swine Network
Group and C-POPI (which spoke
against the board at the FPMC
hearing) to undermine the single-
desk selling system. Durand ajso
sponsored a resolution to use 15 per
cent of the promotion department's
budget to promote exports to East-
ern Asia.
Another resolution called for
Ontario Pork to work with groups
such as the Ontario Federation of
Agriculture and Christian Farmers
Federation of Ontario to develop
guidelines in the management of
liquid manure "to prevent disasters
Beaubien admitted that
OMAFRA's budget had shrunk
from $580 to $450 million during
that time. All resource ministries,
OMAFRA, Ministry of Natural
Resources and Ministry of Environ-
ment and Energy had seen their
budgets shrink while social services
ministries had grown enormously,
he said. Pointing to huge amounts
spent on public housing he con-
fessed, "We're sheltering people
but what the hell are you going to
feed them."
similar to those that have already
occurred in North America." The
resolution also called for the cata-
loguing of groups that are forming
across, the continent to oppose pork
production.
Two more controversial resolu-
tions, eventually passed after some
debate, called for the prices of pigs,
bought under contract between pro-
ducers and packers, be included in
the averaged pool price and for the
board to move to eliminate all
existing and future direct contracts.
Humphries talks of 'black hour'
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