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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. 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