The Citizen, 1996-03-20, Page 30Agriculture 1996
After over 30 years in the
business, Andy Lammerant
makes the job of slicing
rutabagas look simple.
Hubbard's rutabaga plant in
Blyth is one of the earliest
examples of a processor of
Huron product.
Profits at 10 year low
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PAGE A-6. THE CITIZEN, WEDNESDAY, MARCH 20, 1996.
Blyth industry pioneer in processing at home
Continued from A-3
sures. Now, with an increased
interest in expanding crop acreages,
there is not enough fertilizer in pro-
duction.
In his business, the lag time is
four to five months between the
time of ordering and customer pur-
chases. "It is hard to deal with
because price changes can happen
very quickly," he says. "A good
farm manager watches the market
closely and is able to manage
change well."
For Alex Westerhout, a chicken
producer in the Clinton area, the
fluctuating feed and market prices
are less noticeable due to the mar-
keting board. "The board makes
most of the decisions and sets the
base price for the product," he says.
Unfortunately, that price is set
six months in advance, which can
result in a strong dip in margins
when inputs outstride product
prices.
"Profits are the lowest they have
been in 10 years," says Westerhout.
To try to recover some of the lost
revenue, the board may try to
increase the price of the product,
but then must determine the
demand of the market at the new
price, he says.
With the lag time at six months,
there are fewer options to make the
needed adjustments.
The only decision left in 'produc-
ers' hands is whether to buy or sell
quotas, says Westerhout. The pur-
chase of extra quota often leads to
the need for more buildings. Rarely
do producers make large increases.
It tends to be more incremental.
"Two years ago, there was an
increase in price, so production
went up."
However, an increase in price
may lead to less demand, the price
drops and production decreases. It
is all supply and demand.
The poultry business is unlike the
beef industry, says Westerhout. "I
cannot sell my product on a day's
notice when the price is good. My
chicks are two days old now. I have
to wait."
It is not just those in the livestock
and feed businesses affected by
fluctuations, but also the suppliers
of equipment needed to cultivate
the fields.
The high commodity prices have
caused farmers to look at increas-
ing acreage. For that, they may
need more, or newer equipment.
"Cash crops have made good
money recently, the forecast looks
good and farmers are able to book
grains at good prices," says Neil
McGavin of McGavin Farm Supply
Ltd., Walton.
"We have sold a lot of cultivators
lately, as well as all types of equip-
ment for no-till to minimum till and
conventional practices."
"Because we had to order cultiva-
tors last summer, we may now run
low for orders."
The ups and downs in agriculture
may be a somewhat smoother ride
in Huron County because of the
diversity of products, says
McGavin.
"Cash croppers are up right now
while the beef industry suffers."
Because of the diversity,
McGavin believes his business can
handle variations in needs.
"The parts and repair business is
always growing. With more guys
having their owns shops,we are
'able to supply their parts needs.
However, there can be a lot of
money invested in inventory so one
hopes to get rid of all the parts
before the machinery becomes
obselete."
The repair shop is consistently
busy, particularly when there is an
open winter. Farmers are able to
get equipment out of the sheds ear-
lier in the year and begin making
repairs. People are now looking
ahead to the spring, he says.
McGavin predicts strong tractor
and combine sales in the year
ahead.
It is every sector of the economy
which feels the repercussions of a
poor agricultural climate and all
who benefit from prosperous times.
When farmers are able to spend
money on supplies, feed and
machinery, it leads to employment
and steadier incomes for those sup-
plying the need. This then puts
more money into the local, county-
wide, provincial and national econ-
omy.
As indicated by two business
people in the agri-food sector, it is
all a matter of supply and demand.
It is this balance which allows all
components of the economy to
profit and benefit the wider com-
munity.
By Bonnie Gropp
Processing the agricultural boun-
ty of Huron right here at home is
not a new idea.
The roots of Blyth's rutabaga
industry go back to 1939 when
Russell Dougherty began waxing
the vegetables in his garage located
on Queen St., where Campbell is
presently located. Five years later
he built a waxing plant near the
CPR station on Dinsley St. and
moved the operations there.
In 1951 he built a precision seed-
er, the first in North America,
which allowed seeds to be individ-
ually dropped into the soil. Prior to
this many more seeds were planted
than needed and the plants had to
be thinned by hand.
Farmers from as far away as
Walkerton and Exeter were grow-
ing rutabagas to be brought to the
Blyth plant in those days. Fifteen
people were employed there during
the winter to trim and wax 1,500 -
1,800 bushels a day. In the summer
more employees were hired to hoe
and thin the company fields. In the
peak season 150 people were hired
at the Blyth plant.
Another prominent player in the
promotion of the Blyth rutabaga
industry was A. H. Wilford, who
became known to Blyth residents
as "The Rutabaga King."
In 1953 he and Dougherty set up
the Blyth Trade Fair in the plants
storage buildings. The two men
provided transportation from
uptown to the plant, as well as free
refreshments.
This was only part of Wilford's
promotional plan, however. That
same year he set up a featured dis-
play at Toronto's Canadian Nation-
al Exhibition. Because "turnips"
were commonly associated with
cattle feed he began promoting the
Product under the names "rutabaga"
and "vitabaga". It was during the
visits to Toronto that Wilford and
Dougherty initiated the idea of
freezing diced rutabagas, and often
passed out rutabaga juice and diced
rutabagas.
The pair took the vegetables from
Blyth to every MP and when the
Queen visited Canada, they pre-
sented her with a 501b bag of
rutabagas, bringing national recog-
nition to agriculture and an industry
Continued on A-7