HomeMy WebLinkAboutThe 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
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