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Home My WebLink AboutThe Citizen-Agriculture 2000, 2000-03-15, Page 42PAGE A-18. THE CITIZEN, WEDNESDAY, MARCH 15, 2000. Research details economic impact of exports Though industry leaders and agri culturalists had been espousing the importance of agriculture to Huron County for decades, a study by the University of Guelph with support from the Huron County Federation of Agriculture, has finally put some numbers on the table. The report on the Economic Impact of Agricultural Exports on Huron County, completed in June, indicates that almost 75 per cent of all goods produced or handled by 37 companies are exported out of coun ty- The impact study was a result of earlier findings by the university which had shown the county gener ating $512 million in sales directly from agriculture and $1.5 billion indirectly. For each job in agricul ture, it was discovered four outside the industry were supported. With the millions of dollars gener ated, much came through exports, an earlier report had shown. This prompted the HCFA to seek more information on the economics of exporting. The federation was also looking for data which would back up the need for strong infrastructure in the county. It was hoped that by showing the dependence on roads for access to export markets, planners and politicians would be better equipped to make appropriate decisions on spending. The university began the study in October 1998, interviewing and receiving data from businesses across the county. The businesses initially surveyed included enterprises involved in food production, rubber products, fabri cated metal products, machinery, non-metallic mineral products, trans portation, storage and warehousing, wholesaling of farm goods, machin ery and supplies as well as agricul tural industries. The original 41 establishments were trimmed to 37 which were able to provide annual sales and employ ment numbers. There were 21 in farm production, seven in equipment manufacturing and nine in feed and food manufacturing. These companies employed 1,326 full-time equivalent (FTE) people, 1,236 in ag-related business and 1,031 of those were involved in export. Within these figures, the sta tistics showed that 16 manufacturing companies employ 722 FTE in jobs related to the export of agricultural products. Ninety-five per cent of the gross sales incurred by the companies were related to agriculture and of that almost 75 per cent was export- related. International markets con sumed $96.3 million (20 per cent) in product while provincial regions accounted for $235.6 million (50 per cent) in sales. Trade with other provinces only accounted for $14 1 million, or three per cent of business. The remainder was sold within Huron County. An interesting note showed that in the manufacturing sector, agriculture accounted for 68 per cent of the value of goods produced, but the businesses were highly diversified to meet the demands of other sectors. This sector exported 80 per cent of its gross value of products and 57 per cent of the value came from agricul ture-related products. Of the total agricultural production, 84 per cent was exported. In the livestock feed and food cat egory, 71 per cent of the product handled by Huron County compa nies was for export while 61 per cent of Huron product was exported. The extent of the impact of exports to the Huron economy can be shown in the gross annual sales of the 37 companies. Seventy-thiee per cent of gross sales came as a result of exports. The number jumps to 80 per cent when dairy, egg, chicken, hog and apple production is added to the sales from the 37 businesses. Looking at agricultural changes Huron County continues to be the lead agricultural region in the province, outselling the next highest county by $60 million. A reversal of a 50-year trend was also seen in the study. During a time when the province was losing jobs in agriculture, Huron County gained jobs. Seventeen per cent of the coun ty’s work force is employed by some aspect of agriculture. Manufacturing has grown in recent years for an equal share of employees in the county. Though the county lost 255 jobs between 1991 and 1996, agriculture and related industries added 55 and manufactur ing employment increased by 245. Other areas of gain included trans portation and storage, wholesale and retail trade, real estate, education, health and social services and accommodations, food and bever age. The biggest loss came from government positions with 680 jobs gone. Through an analysis of employ ment changes during the five-year period, researchers discovered that the agriculture, manufacturing and construction and retail sectors per formed so well that negative provin cial impacts were counteracted resulting in growth. With the strong performance in these industries, researchers ques tioned why the region was not get ting a proportionate number of gov ernment, education and health and social services jobs when compared to provincial levels. A shortage of business services and hospitality jobs indicated an area for potential growth. Use of the Land Huron remains as the county with the highest farm gate sale in Ontario, increasing 17 per cent during the study period. While the actual number of farms* has declined since 1991, the cultivat ed land acreage has increased as has the intensity of operations. There has been a drop in summer fallow land as well as unimproved pastures. The focus of farm operations has also shifted. In 1991, 60 per cent of farming was livestock and poultry- related while 30 per cent was field crops. In 1996, that changed to 50 per cent in livestock and 35 per cent is primarily crops. These figures fol low provincial trends. In looking at how the land is used, researchers found great differences in sales and labour units per acre, depending on the type of farm oper ation. In regions such as Niagara where the specialty crop of fruit is labour intensive, yet brings good dollar value, sales were $2,203 per acre. However, one unit of labour was needed for each 25 acres. In Huron County, where cash crops such as soybeans, com and wheat are prevalent, the farm gates sales totaled $797 per acre, but only required one unit of labour for each 128 acres.. It was also discovered that Huron County has lower labour units than a comparable county such as Perth. Research suggested this may be due to larger scale cash operations in Huron which require less labour input. Though there may be low units of labour per acre in Huron, the county has the highest percentage of its workforce involved in agriculture, 17 per cent, when compared to other counties. In most other regions, manufactur ing is the largest employer, but it is on par with agriculture in Huron. Conclusion With a strong sense of the impact of agriculture on the economy of the county, the researchers said it is important for policymakers to take that into account when developing and implementing regulations and policies. Agricultural industries and related businesses have the ability to insu late the county against broader eco nomic downturn, said the researchers. This should weigh heav ily in future decisions. This study was completed by Harry Cummings, Don Murray and Gayle Bogart of the University of Guelph. At Clinton Community Credit Union, we are committed to supporting the agricultural commu nity. We offer operating credit to farmers for crop inputs, to get their season off to a good start. A different way of banking. Clinton Community Credit Union Limited Clinton 48 Ontario Street 482-3466 Exeter 118 Main Street 235-0640 Dashwood 165 Main Street 287-3777 —^XONTAfllOx PARTS Stephen (519) 523-4922 Londesborough, Ontario NOM 2H0 Fax: (519) 523-476^ "Specializing in Older Tractor Parts ... ...and looking for tractors and combines in any condition" Vanden Heuvel Construction Ltd. COMMERCIAL AND AGRICULTURAL BUILDINGS • Poultry • Hog • Dairy R.R. 2, GODERICH, ONTARIO N7A 3X8 TELEPHONE 519-524-9176 FAX 519-524-9240 After 6 p.m. 4 STEELWAY x PRE-ENGINEERED Call Ken at 519-522-1858 SYSTEUSCANADIAN FARM 8UILDERSI1 ASSOCIATION ]