HomeMy WebLinkAboutTimes Advocate, 1991-10-16, Page 17FARM !JPDATT,
Times -Advocate, October 16, 1991
Archives Corner: ..anes St. United Church
f r.
Total milk marketing
even with those of 1990
MISSISSAUGA - Total milk
marketings to the Ontario Milk
Marketing Board in August 1991
were even with those of August
1990. This was a dramatic result
since the months from February to
July had all experienced production
declines. Furthermore, it is the first
time August production has exceed-
ed that of July (up 1.1 percent)
since the board started marketing
industrial milk in 1970. Marketings
in June and July, compared to the
corresponding months last year,
had been down 4.1 and 3.3 percent
respectively.
The August production turna-
round is consistent with the Board's
effort to encourage producers to
market more milk in the fall
months. Rather than reduce herd
size late in the 1990-91 dairy year
to accommodate quota cuts, pro-
ducers appear to nave held back
production until the start of the
1991-92 dairy year.
The concerns of producers re-
garding the need to maintain more
even production under the new sea-
sonality program is undoubtedly
one reason for the delay in herd
downsizing. Nevertheless there re-
mains the need to make adjust-
ments to bring production into
alignment with the quota reductions
of August 1990 and 1991.
Based on Statistics Canada data,
the provincial cow population, as of
July 1, was down 2.3 percent to
430,000 compared to a year earlier.
Estimated freshenings will be down
about two percent from July 1990.
The indicators confirm some re-
duction in production potential
over the past dairy year and point
to further cuts to come in the next.
In previous years, produces had
the option of ending the dairy year
in an over -quota position and then
recovering the levy penalty
through an over -quota levy refund.
Producers have been advised that
the Board has already determined
there will be no over -quota levy
refund in the current dairy year.
Thus the over -quota levy can only
be avoided in 1991-92 by filling
no more than 100 percent of quo-
ta.
As a result of the Canadian Milk
Supply Management (CMSMC)
decision, national MSQ was re-
duced on August 1, 1991 by 4.7
percent. The reduction in Ontario
is 2.5 percent in recognition of the
accumulation of quota bank re-
serves and the Board's decision
not to refund over -quota levies at
the end of the current dairy year.
Egg Marketing Agency
approve new package
OTTAWA - The Board of Direc-
tors of the Canadian Egg Marketing
Agency has approved a package of
initiatives designed to reduce costs,
increase revenues, and allow for a
small realignment of quota. The
package will mean some structural
changes for the industry.
"For some time now, the egg in-
dustry has been faced with serious
concerns regarding supply and de-
mand imbalances, increasing lev-
ies, and the growing demand for
processed product," says CSMA
Chairman Ken Tjaden. "The Board
has recognized these concerns and
addresses them in Vision 2000.
However, the withdrawal notices
by Quebec and Ontario have given
the situation a new urgency."
Tjaden says these new initiatives
taken together will save CEMA
over time approximately $8.8 mil-
lion, and thereby result in a levy de-
crease of about two cents per doz-
en. Six areas have been addressed
in the package: industrial product
removal; provincial pricing; seg-
mented pricing; overbase alloca-
tion; dormant quota; and a national
quota exchange.
As of January 1, 1992, industrial
product removal will become the
responsibility of the provinces.
CEMA will pay a base national
price for this product — a price
comprised of the provincial COP
plus four cents, plus transportation
costs. Since this amount is Tess than
the current payment, the provincial
boards will be responsiible for any
compensation to the grading sta-
tions beyond this level. CEMA will
continue to purchase industrial
product and find alternative mar-
kets for 11
"Under the decentralized pro-
gram, provinces can determine the
level and cost of handling their
own industrial product, and com-
bined with other programs, such as
nest -run, significant cost savings
can be realized," says Tjaden.
For CSMA, this program alone
will generate savings of about $4.4
million annually -- the equivalent
of a levy decrease of approximate-
ly one cent per dozen. In anticipa-
tion of this savings, CEMA will be
seeking prior approval from the
National Farm Products Marketing
Council for a one -cent reduction
in the Canadian Egg Marketing
Levy Order, to be effective De-
cember 29, 1991.
Another key component of this
package involves returning the
pricing authority to the provinces.
CEMA's price for doclared prod-
uct will, however, figure in the
calculation of provincial prices.
Industrial, product is currently
priced at a competitive internation-
al level, which usually only repre-
Osborne 4-H club news
EXETER - On Monday, October 7 the Usborne Milk Makes it Better
club held their second meeting at Bev Prout's residence.
To start the club off, Becky Case called the club to order. Thar they
said the 441 pledge. Erin parker gave her financial report and Laureen
Boit gave her report on the last meeting. The club took a vote on its
name and decided they are going to be called the Dairy Dudes.
Jackie Morgan is going to design a title page. They divided into
groups. The group one tasted different kinds of milk. The second group
wrote down different kinds of milk. Group one made a cheesy fondue
dip. Atter that group two had the taste test of the fondue. The club was
adjourned at 9 p.m.
sents half the actual cost -- the re-
mainder is recovered through the
levy.
Under the terms-of-the—}die*
Agreement (FPA), each province
is allocated a specific quota of
eggs it can produce. For the pur-
poses of simplicity, this number is
translated into the number of hens,
based on the national average of
lay.
Currently three provinces --
Newfoundland, New Brunswick
and PEI -- are in an overbase situ-
ation. That is, they are producing
more than their provincial alloca-
tion.
When I was young, I listened to
elders pontificate and yawned at
their statements about the good old
days. I figured the good old days
were not nearly as good as they re-
membered them.
I vowed, too, that when I became
an elder I would not force young
people into suffering through my
meanderings. But I cannot keep
that vow.
It is becoming increasingly ap-
parent to me that the food distribu-
tion system is becoming terribly
distorted. The loss of independent
food stores, even corner stores, is
well chronicled. The food retailing
sector is controlled by four or five
conglomerates in Canada although
a few independents continue to
struggle.
What bothers me is the control
these conglomerates have. Let me
give you an example.
Let us say you have a good idea
for getting tastier potato chips. You
work hard as an entrepreneur and
you produce a product you believe
to be superior to what is already
available in most supermarkets;
more nutritious perhaps, too. And
you can prove it.
So you go to the big, supermarket
chains and try to sell them your
product.
"Good product," the supermarket
executives say. "We think it might
sell but first, before you can dis-
play your product in our supermar-
kets, you have to pay us $250,000
for the privilege!"
Our chip -maker was dumb-
founded. He opted to go to another
supermarket executive and was
given the same figure. It would
have cost this small businessman,
this young entrepreneur, half a
million bucks just to get this prod-
uct displayed.
Now, most supermarkets have
about 25000 products on display
at any one time. If you multiply
even 20,000 times $250,000, you
get a big figure. My pocket calcu-
lator -- and I need one all the time
because by no stretch am I a math-
' ematical genius;, not even a genius,
won't go that far. It does not
have enough columns to compute
but I think It adds up to about
$500 million just for one super-
Kirkton 4-H
conservation
club
KIRKTON - Eleven mem-
bers took part in the Kirkton
4-11 conservation club.
The leader was Margaret
Hem and the group did a
number of interesting things
throughout the summer.
Activities included painting
an environmental slogan on a
piece of clothing and garbage
-Pick—tip on Huron County
Road 11. The club also set up
a display at Kirkton fair.
At the meeting, Elizabeth
French gave a report about
acid rain. Members wrote let-
ters of thanks to local town-
ships and conservation au-
thorities for the programs
provided for residents that
encourage recycling and na-
ture conservation.
Most of the activities were
done in group situations, so
everyone got a chance to par-
ticipate.
The
Red Box....
eliminating waste
with good taste!
The retumable, refillable bottle..
100% environmentally safe
A good case
for your
environment!
11111 - In 1 >, - NB NI - - - In a• .a MI - 17
1
FALL SPECIAL
Sr°
OFF
Coupon Expires Oct. 20, 1991
in me se me v se. in Es no as -- s■
Plus Deposit
Either Size Case
et ccqut:Mtsl witA the system. is 's worth the trip/
Mx or Match 26 AavotxS - including 7 SUGAR FREE
215 Pickard Rd.
Exeter. Ontario
NOM 153
(St9) 235-2808
FARM SUPPLIES /NL.
EXETER — VIOOOHAM
General oeliNery
Woodham, Ontario
NOK ?AO
(519) 229.8000
market chain.
The money is mind boggling
when you also multiply the num-
ber of companies into the equa-
tion.
It seems to me this kind of clout
should be stopped. Two or three
conglomerates control the market
in Ontario, for instance, and they
keep saying that they will stock
any product that consumers want.
If it is not nutritious but is in de-
mand, they will stock it. But only
if the supplier gives them some
money up front or under the table
or in the left pocket or whatever.
A few years ago, an investigator
was conducted to find our if super-
markets gave bonuses or accepted
kickbacks. Nobody came right out
and admitted it was I recall. The
head honchos denied using such
tactics and little came of the hear-
ings.
But this kind of clout should be
stopped by legislation and investi-
gation. When a half -a -dozen execu-
tives have such clout, it is danger-
ous. As Lord Acton is so often
quoted: Power tends to corrupt.
Absolute power corrupts absolute-
ly.
It think if supermarkets were
really interested in giving what
consumers want, they would be do-
ing more to ensure that there is a
level playing field out there. They
would not be suggesting kickbacks
so that only those companies with
the big bucks and the financial
backing get products in their
stores; they would be enhancing
competition rather than hindering
it.
But then, they are interested
purely and simply in making mon-
ey. They give consumers what con-
sumers want only if it means that
their company or companies make
more money.
Sad, isn't it?
Page 17
1
VISSCHER FARMS
COUNTRY MARKET
Open Mon. - Sat. 9 - 5.
CLOSED SUNDAYS
Potatoes
$6.00 for 50 Ib. bag
Apples $10.00 bushel
Empires, Macs, Spartans, Deli-
cious and Mutsus, Spys
Squash, Pumpkins
Broccoli,
Cauliflower,
Cabbage
Fresh apple cider
$3.75 per Jug
Orders taken now for
Brussels Sprouts
3 miles west of Exeter on
Hwy. 83 Phone 237-3442
THE MAFIA PAYS
OFF AT 70 CENTS IN
THE NUMBERS
RACKET; LOTTERIES
ABOUT 40.
Mind you, I have no problem
with people buying a ticket
or so for amusement. What
bothers me are those at the
bottom of the economic scale
blowing their food and rent
money, looking for the end
of the rainbow.
Someone once called lotter-
ies a tax on gullibility. May-
be on poverty, too?
-Ta i�Ll.
BAILEY'S
OF HENSALL LTD.
FURNACES - HEAT PUMPS
CENTRAL AIR CONDITIONING
Highway #4 North 262-2020
Hensall 262-2626
CiLllazekci
Your5nme Comfort People
Vo
Kubo
KUBOTA
CANADA LTD.
Sli Ill). .. e...... - Cwn�
HYDE BROS.
Farm Equipment
"'"' Re Introduced
the ever popular
BT10OHSDT
Tractor
FEATURES:
- Kubota indirect Injection 16 hp,
3 cylinder Diesel engine
- hydrostatic transmission with
two speed range
- four wheel drive
- live PTO, both mid and
rear.
- adjwtabl WNItle1hiops
- economical design & price
BENEFITS:
Superior fuel economy, smooth, low
vibration engine
Excellent speed ranges for mowing,
snowblowing, loader work.
Excellent traction.
Shaft drive reduces maintenance
costs associated with belts
Provides operator comfort, safety
Ideally suited for home owner use
(order now, April '92 delivery)
Recession Buster Prices!
•
$9900
only (tractor only)
Mowers, Loaders, Snowblowers available
PDI and tuxes extra