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THE CITIZEN, WEDNESDAY, MARCH 18, 1998. PAGE A-3.
Agriculture '98
Dairy farmers face challenge at WTO
By Janice Becker
Citizen staff
As the world continues on its path
to globalized trade, Canadian dairy
farmers are currently faced with a
challenge at the World Trade
Organization (WTO).
The United States and New
Zealand have brought a challenge to
the WTO tribunal disputing
Canada's classified pricing system
for milk
products,
particularly for
special classes,
said John Core,
chair of the
Dairy Farmers
of Ontario.
The pricing
system allows
for differences
in prices depending on the quality
of the product and the intended use.
The United States is arguing that
the higher domestic prices are
subsidizing exports.
Core stated over-quota milk
makes prices fluctuate monthly as it
may not be shipped out the month
in which is has accumulated.
A quantity of milk product is
stored until it can be shipped to a
specific destination in large enough
quantities. The price will vary over
that time, he said.
Canada had five pricing
classifications in place; however,
part of the difficulty arose when the
CONTINUED FROM A-2
are, so an amendment will address
the proper handling of them for
transportation."
Ballentine said that updates vary
on the need, but because the codes
are not legislated by government
change is fairly simple.
However, it is a lengthy proce-
dure so they wait for as many
changes as they see might be com-
ing before the amending. She has-
tens to add, however, that that
doesn't mean people will not be
aware the rules may have changed.
"The information gets out to pro-
ducers through other avenues," she
said.
Though the codes are guides for
the producers making the public
aware of their existence is also
something the farm groups are
interested in. "There are a lot of
misconceptions out there," said
Ballentine, "particularly from the
city people. Everybody eats, yet 98
per cent of the people don't know
where their food comes from. They
don't have a connection with a farm
and it is difficult to bridge that
rural/urban gap."
"It's important that they see that
this is a very well-regulated indus-
try, one of the safest in the world,
GATT agreement said there had to
be a decrease in subsidies while
NAFTA states there should be no
subsidies between countries, said
Core.
To manage the transition to lower
or no subsidies, new classes were
added to the pricing system, he said.
As an example, Core said
confectionary products sell for $32
to 33 cents per hectolitre while
product shipped to Lybia and
Algeria goes for four cents more per
hectolitre. The price of quota milk
is currently down to $52.80 per
hectolitre.
The American/New Zealand
challenge was launched because
those countries believe Canada is
not playing by the rules though
Canadian supporters say it is price
classification, not subsidies.
"If a packer of canned vegetables
has excess inventory," said Core,
"they sell it cheaper off-shore. The
top price is for a brand-name label
with a mid-price for private labels.
This is a normal commercial
practice, as is having a shared price
in a pool."
According to information
received, Core believes the
American/New Zealand challenge is
not aimed solely at Canadian
practices, but in an effort to prevent
European nations from adopting a
similar system.
The United States has a federally-
mandated system which sees prices
vary as the distance from Wisconsin
increases., said Core. They also
affordable, with lots of controls in
place."
Though animal care standards are
just a part of the big picture, they
have to be worked into everything,
Ballentine said. From awareness
events like farm hiker tours, there
is an opportunity to educate the
public.
The National Management Com-
mittee has produced fact sheets,
which highlight the information
from the lengthy codes for public
consumption. "It's all the average
person needs," said Ballentine.
These are available through agri-
cultural-based events, such as fairs.
"It's an on-going effort. There is
no one magic bullet to make people
aware. But what we are trying to do
is give them some comfort level,"
she said.
"Hopefully, the public sees how
much research goes into it," said
Richards.
"Any producer abusing animals
is the real loser because he's proba-
bly losing money. Abused animals
do not perform," he said. "Under-
stand that this isn't about raising
your pet pig. These are raised for
livestock product. I can justify any-
thing in the code. I am not ashamed
of anything we do to raise animals
within these codes."
have dairy compacts.
"If Canada loses the export panel,
due to a WTO decision, it will be
hard to get the government to
support a purely domestic industry,"
he said. "We have to get the world
price opportunities up over 32 cents
per litre when it costs 45 cents to
produce."
However, the federal government
is convinced Canada will win the
case as both countries have a
variation of classified pricing, said
Core.
There has also been a call for
Canada to create a single marketing
system for all dairy farmers, though
Core thought this a challenge as
there are 25,000 producers across
the country.
"We must find ways to address
regional difference."
In planning for a future in dairy,
Core said a family must make good
business decisions which are right
for that family and they will come
through.
"One must make sure everyone in
the family has the same expectations
with regards to issues such as farm
income and time off. It is better to sit
down and resolve things," he said.
"It is hard to fix problems with
hindsight but easy to resolve with
foresight."
Codes help educate