The Goderich Signal-Star, 1974-11-14, Page 35Riddell denieshe's stirring up trouble
The Ontario and QuebeE
Chicken Producers' Marketing
Boards have been called
together by W.A.. Stewart,
Minister of Agriculture and
Food to avoid a potential
.- chicken -war and set a gatisfac-
tory price for broiler chickens.
The issue arose several weeks
ago, when the Farm Products
Marketing Board (FPMB) or-
dered the Ontario Chicken
Producers' Marketing Board to
decrease the price of their
broilers one cent,, to put it on
par with the Quebec chicken
producers' price. The Quebec
Chicken Producers' Marketing
130ard (QCPMB) countered by
lowering their price, by two
cents.
Jack Riddell, Huron MPP
feels that the whole thing could
have been averted if the FPMB
hadn't ordered the Ontari6
price decrease. The OCPMB
had been given the power to
establish chicken prices and
never before in five years, had
their decisions been questioned
according to Riddell.
"They (the OCPMB) were
told by the FPMB 'that they
were acting, irresponsibly, and
simply h.ad to lower their
price", Riddell said. "Chicken
producers were already
operating at a deficit, and it's
pretty hard to expect the
producers to take a loss."
Riddell was then approached
by the OCPMB whose members
were upset that they were or-
dered .to. lower their prices.
Riddell questioned• W.A.
Stewart in the legislature Oct.
28. "Is he (Stewart) aware of
the recent action of the FPMB
in rescinding the regulation
-permitting --t-he OCPMB to
establish the price from last
Thursday to this Thursday' for
broilers? Would he not agree
that the board is acting
irresponsibly, catering to the
whims and fancies of the
processors .at the expense of the
producers who are, according to
the • latest statistics, making
something like -4.8 return on -
their investment?"
HO,Pesrch Icken price v'ur can be averted _in
Stewart') replied that he
"wa't -aware -of what
arrangements have been
made."
November 1 in the
legislature, Riddell predicted,
"the industry could quite con-
ceivably be entering the
threshold oft:'a price war in
chickens,"' a
Stewart replied, "Mr..
Speaker,') the hon. mernber
(Riddell) is as usual trying his
best -to incite a „problem het -
ween Ontario and Quebec... I
can tell you quite frankly, Mr.
Speaker, we have reports of all
the phone calls he is making to
everybody in the -province,
trying to stir up problems.;;
Riddell denied that he was
trying to stir up " trouble.
"That's utter nonsense-, he
said.
Stewart then returned the,
power of setting prices to the
OCPMB - the power which had
just been rescinded by the
FPMB. "Whatever they decide
to set it at yesterday or today..
is entirely up to them. It's
their job to do that and it is in
-their hands to do so."
Riddell said the only
solution is to raise:. 'prices in
both Ontario and Quebec. "In
order to give Quebec 'a fair
return, the price has to go up."
• He suggested a seven cent in-
crease in Quebec, and four
cents in Ontario, Quebec
depends on the Ontario market
to purchase 40,000 pounds of
their broilers each week. Last
year, Quebec produced slightly
less than their quota of
208,000,000 pounds, but" still
exceeded the local demands.
They rely on the Ontario chain
stores to--buy••up • their excess -
chicken, and must therefore sell
at a lower price. Quebec and
Ontario produce chickens on
approximately a 50/50 basis, •
Riddell expects that a
satisfactory settlement for both
sides, come from the
negotiations. .
"There's less apt to a. price
war now, because they're trying
to settle this thing", he said -
The following is the Novem-
ber 1 debate on broiler prices at
the Ontario Legislature:
Mr. J. Riddell (Huronl,:
Thank you, Mr. Speaker: A
question of the Minister of
Agriculture and Food': Is he
aware that the Quebec chicken
producers' marketing board in
all probability will be announ-
cing a two cent decrease in the
price paid to -broiler producers,
in Quebec next week and that if
the Ontario chicken producers'
marketing board is compelled
to lo'y+vr its price to correspond
to the Quebec level, then the in-
dustry could gdite conceivably
be entering the threshold of a
price war in .chickens? How
many of these food production
industries can we allow to go
bankrupt before we step in -and
take some action?
Hon. M'r. Stewart: Mr.
Speaker, the hon. member is as
usual trying his best to incite a
problem between' Ontario
andQuebec.
Mr. Deans: The mi-nister is
paranoid!
Mr. Reid:. He has to be kid-
ding!
Mr. Deans: Everybody is in-
citing problems.
Mr. Reid"' He is getting
paranoid.
Interjections by hon. mem-
bers.
,Mr. Speaker: Order; please.
Mr. Ruston: It's losing these -
by -elections in the province.
Hon. Mr. Stewart: I can tell
you quite frankly, Mr. Speaker,
we have reports of all the
phone calls he is making to
everybody 'in. the province
trying to stir .up'problems.
Mr. R.F. Nixon: Stir,up? Oh,
boy. .
Mr. • Foulds: Is the minister
saying the government wiretaps
our phones?
Mr. R.F. Nixon: What kind
of an allegation is that? You
should concern yourself with
that allegation, Mr. Speaker.
Hon: Mr: ' Winkler: Well,
everybody should.
Mr. R.F. Nixon: I'll say. It is
rotten.
Misconceptions about eggs
Erwery one seems to have au
opinion about egg marketing
but some basic facts., are being
ignored: : • •
This is what Agriculture
Minister Eugene Whelan said
recently.
He-. listed a series of, miscon-
ceptions, ,and offered facts to
contradict these opinions.
Misconception: egg prices are
foo high.
Fact: egg prices are lower
than , general food prices dr
prices for all commodities
within the Consumer Price"'In-
dex. The egg price index. for
July stood at 148.6 for Grade A •
large eggs at the retail level,
compared with 190.2 for all
food item, and ;with 168 for the
overall Consumer )~?rice Index.
Misconception: egg prices
.have not come down from 1973
-.Price. Index - rose from 157.6 to
168.
Misconception: egg prices
have risen at an abnormally
fast rate,
Fact: prices rose in 1973, but
the price increase was brought f:
on by shortages caused by
producers being driven Out of
"business,by extremely low 1971
and 1972 prices. In 1971,
producer prices for Grade A
large averaged only 25.3 cents
per, dozen,, the' lowest price in
20 years. In 1973, prices
averaged 32.2 cents per dozen,
and prices were only lower
than that twice in 20 years: •
Misconception: the Canadian
.Egg Marketing Agency
(CSMA) has not made
management and. ad-
ministrative improvements.
highs. Fact: administrative
• Fact: eggs are one of the very mistakes have been made in the
few commodities in our \ management 'of the national
economy which have come egg marketing plan. This is,
however, the first agency of its
down.. in price since January.
Egg prices have come down by
six percept at a time when food
prices hi' general- rose by six
cent, • The index for eggs
dropped from 158.7 in January
0 to 148.6 in July. During t'he
• same period, the Consumer
type. Corrective actions; have
been taken each time that
problems have -arisen, some
dating back to well before the
issuance of the January report
of the .Food' Prices Review
Board. More specifically, egg
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prices have been reduced, a
complete review" of operations
of the national agency and
provincial marketing boards
has been undertaken, and
provincial supply programa are
being overhauled.
Misconception: thefederal
government has paid $10„
million to "hail out" C`EMA.
Fact: the federal government
has bought about $1,300,000
worth of processed egg
products. Prices paid ranged
from 25 to 28 cents per dozen
on a fresh egg equivalent basis.
The purchases were made for
the World Food Prograni, out
of the regular budget of the
WFP, and only after it was
determined that the WFP had'
a :, use for the products. The
amount purchased is
equivalent to about 40 million
shell eggs, or about one percent
of total annual Canadian egg
production.
•
Misconception; the regret-
table destruction of eggs due to
quality loss in storage will he a.
"cost" to consumers.
Fact: these eggs' were owned
by producers, and had quality
been maintained, the returns
from their .sale would have
gone to producers:This is their,
loss, and not an- increase in
price to consumers.„
)Misconception: if "too many
eggs are being produced, it is
-easy to cult back. production.
Fact: production decisions
are made many months in ad-
vance of the actual production
date. Once hens are in produc
tion,. cutbacks can represent
severe'' losses to' producers as
hens that are worth $2.50 to
$3,00 as layers' are worth only
20 to -30 cents a:~ salvage.
Misconce tion: consumers
are beirS .forced to pay the
price fd'r the loss in market
price for eggs that are removed
from the freGegg market and
diverted to proessing,
Fact: the producers absorb
the loss in market price. To the
extent that consumers pay
"higher" prices for fresh eggs
because of surplus removal
programs, they pay lower prices
for processed eggs, which are
used to .produce bakery
products, etc. Producer. prices
cannot be set "too'' high,
because imports or other foods
wilt replace Canadian fresh
eggs. Over the long term,
producer prices cannot be •set
too low, or producers will be
unable to maintainnpraduction.
This' is a very narrow price
range. ,a
•
Hon. Mr. Stewart: It isn't
rally. All I know Mr. Speaker,
is I'm getting reports from the
people who are receiving these
calls and they are quite
distressed.
I may say, Mr. Speaker, there
is, no compulsion in any respect
on the Ontario Broiler Chicken
Marketing Berard to set their
price. Whatever they decide to
set it at yesterday or today,' or
in conjunction' with the Quebec
price, is entirely up to them-
Itr-s'"their job to do that, and it
is in their hands to do so. What
they will do I don't know
I do know - that they are
having meetings• with the
Quebec chicken marketing
board and I can .assure you
that there are conversations
going on between th.. officials
of my ministry and the Officials -
of the Quebec ministry in the
hope that we can do something
to resolve the great difficulties
that do from timeto time occur
between the Province of
Quebec's an the Province. of
Ontario's chicken marketers,
To me,' the problems arsimply
magnified by giving the type of
public exposure which 'unfor-
tunately seems to be the wont
of our friend from Huron. -
Mr. Speaker: The member
for Port Arthur. -
°
WM.:RICH SIGNAL -&TAIL, THURSDAY, NOVI MBEkt 14, 197 •P, OE 7B
nto rio.
Mr. Fouler x1'h•ink you, Mr.' will consider the allegation
Speaker. A ,lues -11,01 of the from the source from which it
Treasurer, it 1 relight - carne but my supplerm'ntary—
• Mr. S-pr,akt•r One 11►ral, Mr. Speaker: Supplementary
question 1,‘ the member for- question.
Port Arthur • IVIr. Riddell: - my supprlemen-
Mr. Foulds- Thank you, Mr tart' question is 'How can the
Speaker., . • minister ,yav that the Ontario
Mr. Riddell Supplementary• chicken ftroducers' in' •keting
Mr. R F' Nl,yu11 `There 1s ' a board -is free to estahlis'tl prices
supplementary TIe,ti+,n when the ' Farm Products
Mr. Sia iker No ,rlPpl.etnerta Marketing Board lost , week
tart' questions rescinded that regulation and
Mr. • Riddell It is pretty told them that they had to
serious, Mr Speaker. - reduce them price to alert the
' Mr• 1>' F NIrOn On a point Quebec le}•el'' - caro
of order, Mr speaker. the hon.. Mr. R F Nixon: We hear lt-
Minister ,,t .Agrirlilture and was on the instructions of the
Food I11(11 aced In yutlr tninisteri=- -how about that for
presence that In his ,,pinion the an -allegation? a,
.
hon. ,irtt•uiher was making Mr Deans Arid when 1\
phone , alis ar„und the "asked. the minister that a few-
provine e in, itis; Arse ontent. days ago, what did 'he say'
Sure4v,iu ,ire t;i,rng to give Hon. Mr ,Stewart. 1,have no
him an �,Iij rtunity to ask a comment aout what happened
Suprlilernentar\ question, even if last week. I ;imply say they are
it isn't t1.4 tical. with that free as of .yesterday Thursday
scurrilous alleg,atIon- is. the normal day for them to
Mr. Speaker Well, the time set_ their .price ---at whatever..
has just about expired. level t hoy belies e is ap-
1riteriectie,n" by an hurl. mem- propriate. That is their respon-
her. sihility.
Mr. •K F. Nixon: I shouldn't Mr. Speaker: The member
use such Ing words in the for Port Arthur. •
Premier's I,resence., but -Mr, R.F. Nixon: The minister•
scurrilous is exactly the right hasn'.t gotten •over losing the
trete. •hv-election.,in Huron. It still
Mr. Speaker; Order, please. smarts. Toughest Tory of them
Mr. Riddell: Mr. Speaker, I all.
J
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