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HomeMy WebLinkAboutTimes-Advocate, 1981-04-01, Page 13Hannam tells Agrologists of challenge Need understanding of marketing boards Former Ontario Federa- tion of Agriculture president Peter Hannam told the an- nual meeting of the Ontario Institute of Agrologists at Centralia College Friday that a major challenge for the next decade will be to get the general public to more fully understand the roles and types of marketing boards. Hannam. now manager of Can Farm said little progress has been made in this effort in the last 10 years and the task is much bigger now than it has ever been. Hannam continued, There is no doubt the biggest challenges will go to supply management boards. Supply management boards will continue to be accused of protecting their producers too much, and will constantly be threatened that their powers will be withdrawn. Quota values and quota transfer policies will be the greatest source of attack. The public, politicians, and academics, by and large, believe quota value are too high, and that spells serious trouble. The real challenge is to develop innovative new directions in transfer policies to answer the critisms. Major resources by governments. Univer- sities. and marketing boards, should be directed - to finding new answers. Marketing maneuverabili- ty in an unstable market en- vironment will be a limiting factor for supply manage- ment boards, and those boards who can use flexibili- ty in pricing and supply will end up with a bigger share of the market. The challenge will be to know when to use that flexibility and to get producer support for it. "Overzealousness" by boards eager to get the most they can for producers is a danger which boards must be conscious of and must guard against. It appearss acceptable for unregulated business to do this, but pric- ing powers granted by government will always be Please turn to page Zia Times -Advocate, April 1, 1981 Page 13 • The Cultivator Of The Future Choose WIL-RICH For The Aggressive Farmer READY FOR A BITE — Heather Jamieson, daughter of Centralia College Principal Doug and Beth Jamieson helps Jean Rennie andJanPelletterioduring a tea break at the Jamieson home Saturday morning. The ladies were accompanying their husbands at the annual con- vention of the Ontario Institute of Agrologists. T -A photo Agrologists elect head at Centralisgathering LarryP. Lenhardt. P. Ag., Ontario Agricultural 34, of Lindsay, was elected college. University of President of the Ontario Guelph. as president of OIA. Institute of Agrologist Mr. Lenhardt has been a (O1A) at the annual meeting teaching master at Sir San - of the Institute being held at ford Fleming College since the Centralia College of 1975. and was manager of Agricultural Technology. •Regunno Fruit Farms, The new president is co- ' Niagara -on -the -Lake, from ordinator. Farm Mange- 1972 to 1975. A native of Ox- ment Program, in the ford County. he is a graduate Natural Resources Division of the University of Guelph. of Sir Sanford Fleming He has been a faculty College in Lindsay. He representative on the Board succeeds Clayton M. of Governors of Sir Sanford Switzer. P.Ag., Dean of the Fleming College since 1979, 1 1 We'll Do1 the Job tf Right... swim Whatever the protect, call on us for Ready -Mix Concrete • RESIDENTIAL • COMMERCIAL • FARM (Including ManureTanks) FREE ESTIMATES C. A. McDOWELL LTD. 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Shown checking the contents are Joe Miller of the Ontario Bean Producers, Huron s Ag Rep Don Pullen and area farmer Brian Miller. T -A photo The flak has only just begun. Unless supply - management marketing boards come to grips with this thorny problem of quota values, the flak will get unbearable. The Christian Farmers Federation of Ontario has come to the conclusion that, in the dairy business at current quota values, a dairyman's quota equity is approximately equal to 15 per cent of his total equity, a broiler producer's equity in quota value is 25 per cent of total equity and an egg producer's quota is worth 50 per cent of his equity. Milk quota prices declined in the exchange monitored by the Ontario Milk Marketing Board this month. Fluid milk quota prices dropped -- dropped! --to 195.05 a litre fron9 more than 1100 a litre two months ago. If quota values are about 15 percent of equity in the dairy industry, why in tarnation are the values so much higher for broilers and eggs? It seems to me something Is wrong in the system when quotas become so valuable that the rich get richer and the poor get poorer. The more junior boards such as the egg board and chicken board could take some lessons from the milk board which always seems to be a step or two ahead of the others. Perhaps that is because they have been in operation longer but it also may be because the milk board has managed to elect and hire the best people for their jobs. Even so, I believe the price of quota, even for milk, is too high. There is no way that such high prices cannot be reflected in the final price of the product. Marketing board managers will deny it and show you figures to prove it but the cost, the value, of quota is simply too bne foot itt lite row "aa iene +ur •owrnnec or •oo Lona taw Rd Frm On, P.3 high to have such statements hold water. Farmers were forewarned at the Ontario Federation of Agriculture's annual marketing seminar. The Economic Council of Canada is going to get some • recommendations to do something about quota values. A special committee of the ECC will be suggesting that quota valves are really ripping off cousumers. I'm not convinced this is true but the agricultural community is going to have to convince this whole country that it isn't true: I do have some reservations, though, and the only solution I see is to have another regulatory body handling all quota transfers. I know. 1 know. Who needs another regulatory body? Who needs more in- terference from senior levels of government? I think supply management marketing boards do if only to prove that justice is not only done but is seen to be done. When the value of quotas gets so far out of whack that those selling out their business get the greatest benefit, something has to be done. An administrative body to supervise the sale and transfer of quotas seems to me to be the only sensible answer. Quotas could still transfer freely within families. A "bank" of quota could be left with the regulatory body each year and be given to those who apply for it when they can prove gains in productivity and efficient management. The regulat ory body could also allot quotas for those wishing to become new producers Sounds like would need chairman' someone who God? a big job? You Solomon as - Or even wants to play Best Interest 15¼% We represent many Trust Companies. We are often able to arrange for the highest interest be- ing offered on Guaranteed Investment Cer- tificates. EXETER 235-2420 subiect to chance Gaiser-Kneale Insurance Agency Inc. GRAND BEND 238-8484 CLINTON 482-9747 For a while, the screaming and yelling would be heard across Canada. The weeping and wailing and gnashing of teeth would be awesome to behold. But something has to be done. If you have a better idea, get it on paper and tell the powers that be about it. 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