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Home My WebLink AboutThe Citizen, 1999-01-27, Page 11Huron County Pork Producers’ annual meeting THE CITIZEN, WEDNESDAY, JANUARY 27,1999. PAGE 11. Farmers seek end to producer-packer contracts A huge majority of pork produc ers at the Huron County Pork Pro ducers Association’s 50lh annual meeting in Varna Jan. 21, want Ontario Pork to end direct produc er-packer contracts and sell all hogs again. Candidate after candidate seeking positions as councilmcn for the Huron County Pork Producers (40 ran for 29 positions) supported Ontario Pork’s position as a single desk for marketing all hogs in Ontario. Later, as Ontario Pork CEO Paul Knechtel outlined a new marketing proposal, producers lined up at the microphone to express skepticism ' about plans to continue to allow various options including direct producer-packer contracts. By the end of the meeting a reso lution had been proposed and quickly passed calling on Ontario Pork to take control of all contracts and regain control as sole seller of hogs in the province. President Gary Love set the tone for the evening when he recalled the efforts of his grandfather 50 years ago to help organize the Pork Producers Association to give pro ducers more power at a time when most pigs were sold to drovers and “the average farmer took what was offered”. Half a century later farmers are in trouble again and need .to act together, he said. “We’re in the middle of a com Ont. Pork CEO talks of new marketing options Instead of preventing producers from having direct contracts with packers, Ontario Pork should find options so attractive, producers will want to take part, Ontario Pork’s CEO Paul Knechtel told Huron County Pork Producers Thursday night. Knechtel, unveiling a new mar keting strategy to producers at the Huron association’s 50th annual meeting, said forcing all pork pro ducers to sell through the board would only mean some angry pro ducers and angry packers. “I wish I had a magic wand and everybody would jump on stream,” he admit ted. “I believe with the options we have here that a lot of people are going to come back and say ‘I want a piece of that’,” Knechtel said. New marketing options proposed include the “Platinum Program” under which Ontario Pork will con tract with packers to supply hogs under tight specifications which might include specific weights, delivery dales, loin-eye depth and specific genetics. Individual pro ducers can decide if they want a piece of that contract and sign guar antees with Ontario Pork to deliver as required. Packers say they are willing to pay premiums for a top quality product that meets tight specifica tions, Knechtel said. The second option for producers will be a contract pool under which the revenue from all hogs sold to packers through block contracts would be blended on a weekly basis. This pool would be attractive to those producers who are pre pared to commit to deliver a guar anteed number of hogs each week and arc prepared to share informa tion on production intentions and inventory levels. plete ravaging of producers.” He pointed to information from North Carolina where 50 per cent of hogs are owned by integrators and where al the same time integra tors were getting $51 a hundred, independent producers were getting $39. “I hope we in Ontario and Cana da can learn from U.S. and not make the same mistakes,” Love said. He said the pork industry is at a crossroads in Ontario and indepen dent producers are in danger if they don't work together to regain con trol of marketing. Otherwise farm ers will be forced into contracts with packers and “you’ll be a hired man on your own farm, carrying a $1 million lunch pail.” Love called for action from Ontario Pork. “We as a county stand firmly behind our provincial board and we want them to act now.” He called on banks and lending institutions to be lenient in helping producers gel through the cash crunch caused by record low prices in December. One generation of young farmers was lost by the debt crisis of the 1980s and another has been hurl by high land prices in the 1990s, he said. “If we lose another group now, who will be the stew ards of the land 20 years from now.” Huron-Bruce MP Paul Stccklc answered questions for nearly half Knechtel said one of the positives that has come out of the current hog crisis and the closing of Quali ty Packers during its current strike, is that five new U.S. customers have been found who are so pleased with Ontario hogs they’re willing to sign long-term contracts. The problem is Ontario Pork doesn’t have the information on producer intentions to be able to guarantee delivery, he said. “If we know what your intentions are we have a better idea and can manage the marketing,” Knechtel said. The original pool would still be available for farmers who do not want to commit to producing spe cific numbers per week. “We believe there is room for producers like that,” Knechtel said. The pool would also be open for those who produce pigs in excess of their contract. The pool program would offer hogs on a spot basis to packers. In times of shortage of spot hogs there might be a good price but. if supply is high, the price will suffer he said. The fourth option would be con tinuing direct contracting between packers and producers, Knechtel said. Ontario Pork would be a third-party signatory to such con tracts and all settlement would come through the board. Ontario Pork has already been negotiating some contracts under the new strategy, Knechtel said. “Some innovative contracts are being negotiated right now. We believe this marketing plan is sus tainable. It’s profit-oriented for all parties.” Others weren’t so sure. Bob Robinson of RR4, Walton worried that the pool would become a dumping ground for inferior pigs. Continued on page 12 an hour. While rejecting a request from Blyth-area producer Dave Linton that the government conduct an investigation into what has hap pened in the pork industry he had harsh words for packers. “What happened in the last three months is nothing short of robbery in broad daylight,” he said. He pointed out that less than six months ago Ontario packers were crying out for more hogs al a time when Ontario hogs were going to the U.S. to find better prices than those offered in Ontario. When those pigs became available to Ontario packers they offered record low prices. Producers passed seven resolu tions. Besides the resolution calling on Ontario Pork to take back sell ing of all hogs, Linton also pro Producers of the year Brussels-area pork producers Cathy and Jeff Cardiff, centre, are presented with the Producers of the Year award at the annual meeting of the Huron County Pork Producers' Association, Thursday. The Cardiffs were cited for their community involvement and for promoting pork through their barbecue business. Presenting the award are Gary Love, left, association president, and Dave Linton, committee chair. Brussels Bull D. Hardy named to all-stars Continued from page 10 Dosman. The second all-star team netminder is Reid. Patrolling the blueline on the second team are Troy McDiarmid of the Walkerton Biackhawks and Kirk Paddon of the Bulldogs. The forward unit for the second team is comprised of Andrew Myall of the Wiarton Wolves, Dave Hardy of the Brussels Bulls and Schmalz. Ironmen's Todd Bender was named coach of the year for the second straight season. Guest speaker for the banquet was NHL referee Lance Roberts. Although originally from Edmonton, he now resides in the Kitchener area. He was able to attend the awards banquet because of the NHL All-star break. The Western Junior C season ended Friday with the Kincardine Bulldogs beating Wingham 4-1 for the championship trophy. Help protect the environment Reducejreuse and recycle posed that the board should allow and administer a voluntary check off which would be directed to the Ontario Hog Producers Association which could invest the money in smaller packers. "We’re in a pickle now and it could get worse,” he said of the sit uation where there arc only two major packers in Ontario and each has been on strike at one point in the past year. With threats from the U.S. to close the borders to Ontario hogs, “small and medium packers could be our only option”. Another resolution called on Ontario Pork to sell hogs produced for the pool first, and only then sell contract hogs that had been pul in the pool because the packing com pany wouldn’t honour its contract with producers. Both Maple Leaf C itizen The Citizen’s New 1999 Telephone Directory Will Be Available Soon! It will have the newest listings in a convenient large type format. In one book you have the listings that you would need three Bell Canada books to find. Here is your chance to advertise In a product that stays around 365 days. Reserve your space today call Jeannette McNeil or Les Cook at 523-4792 or Fax us at 523-9140. Deadline: Feb. 5, 1999. If you have a new phone number, or if you have just moved Into this area, and your phone number is not included in the new Bell phone book, please call 523-9140 and we U be sure to Include your listing. Meats and Quality Packers have cancelled contracts with producers during strikes in the past year, leav ing Ontario Pork to have to find markets for the additional pigs, some as far away as Alberta. Ontario Pork should purchase advertising to let consumers know who gets what from the consumer price of pork, another resolution said. Another called for Ontario pork to be identified on supermar ket counters by a special sticker. Other resolutions called for better notification on pigs that are con demned by inspectors and called on Ontario Pork to make sure its com puters are ready to deal with the Year-2000 problem and assure pro ducers of its precautions. The board should also question processors as to their readiness, it said. 1999 PHONE BOOK Serving Auburn Blyth Brussels Clinton Goderich Gorrie Wingham