Loading...
HomeMy WebLinkAboutThe Wingham Advance Times, 1995-02-08, Page 7WEDNESDAY FEBRUARY 8,1595 Positioning for the next century Some people say that 1994 was an exciting, eventful year in agri- culture. But 1 have a prediction: I think 1994 will seem like a "quiet" year by comparison with 1995. In the coming months, we must reform the Western Grain Trans- portation Act, continue to renew supply management, fight the bat- tle for more world markets, and finalize our farm safety net struc- ture. We must keep a sharp em- phasis on agricultural science and technology, modernize the federal regulatory regime dealing with pesticides and biotechnology, and streamline our inspection service. In short, we're facing an enor- mous amount of transition and change which we must manage within the harsh reality of fiscal responsibility and fewer govern- ment dollars. As I said, 1995 will be a of huge challenges. This is not to say that the past 14 months haven't been a "bap- tism by fire" for me as a new Min- ister of Agriculture and Agri - Food. In fact, as soon as 1 was sworn in as minister in November of I had barely six weeks to con- clude the agriculture agreement in the new General Agreement on Tariffs and Trade. . (GATT). It was my first hot file, and the stakes were high: never before had agri- culture • .been included under the GATT. But the job got done and Cana- da's interests were protected. The. new GATT is now. being imple- mented in 121 countries around the world. It will mean more world trade overall. A rules -based trading system will be equally applicable to all countries without exceptions. and tougher discipline will prevail through the new World Trade Or- ganization (WTO). The deal means a better dispute- settlement mechanism, a clearer definition of "subsidization," Tess trade distor- tion and better market access. All Goodale's Ag Notes Ralph Goodale of this will help boost Canadian agriculture and agri-food exports around the world. My second hot problem was struggling with our big and valu- able but very difficult trading re- lationship with the United States. The two-way agricultural trade between Canada and the U.S. is worth $l4 billion annually; sales to the U.S. account for 55 per cent of our total agricultural exports. But the American marketplace is sometimes not all that friendly. Last summer, we achieved a one-year truce in the dispute about Canadian wheat sales in the U.S. The deal was controversial,' but for the current crop year it se- cured our access to American GATT -consistent, market and production neutral, actuarially sound, fiscally responsible, af- fordable and user-friendly. It was a tall order, but after 10 months of hard work by farm organizations and federal/provincial officials, we achieved a national consensus on the design for the new pro- grams. We are now well posi- tioned to get on with our new safety net plans for the 1995 tax year. Through the year just past, we reinstated interest-free cash ad- vances, modernized the Canada Grain Act, supported the Western Grains Research Foundation, ex- panded the financial tools.availa ble through the Fann ,dit Cor- poration; and began the necessary renewal of our supply manage- ment systems to fit with •the new GATT. We also created a National Bio- mass Ethanol Program, expanded my department's mandate to in- clude the value-added and pro- cessing end of the agri-food 'wheat markets at near all-time chain, and launched a series of record levels. This additional ac- ' joint ventures with the private cess is worth at least $150 millitn sector to enhance Canadian agri- to Canadian farmers. cultural research. We now have other battles to It was also my responsibility to fight against U.S. attacks upon 'lead agri-food trade missions to Canadian peanut butter, sugar, Japan, Korea, China, Hong Kong, sugar -containing products, and Mexico and Europe. The results some aspects of our dairy and are encouraging. The value of our poultry industries. It's a never- agri-food exports rose during ending struggle. We must remain 1994 to close to $15 billion, up alert, tough and persistent in de- from $13 billion a year earlier. fending our rights and interests. We want to surpass the $20- A third hot file in 1994 was billion level before the turn of the clearing up a snarled grain trans- century. portation system. The 1993-94 Through innovation, co- backlog was horrendous. Last operation and determination, we spring, I called together the major will have a modern, progressive players to work out practical solu- sector unthatched in the world. tions. By the summer we had I'll be describing some of my , caught up, and this year the sys-ideas about agri-food issues in fu - tem is running between 35 and 55 tore columns in this newspaper. per cent ahead of last year. In the meantime, I would appre- Fourth on my hot list was a ciate hearing yours. Please write new generation of farm "safety to me at Office l75 -EB, House of nets -- to be universally available, Commons, Ottawa, K1A 0A6. THE IYINOHAN ADVANCE FINES Crops Dairy farmers on the road to change after agreement Huron pork producers get behind their board not the packing plants. Council requested OPPMB present all reports to them for dis- cussion and approval before being released or action taken. The OPPMB was authorized to become marketers for all hogs and to use that strength to compete for and pursue new markets in Ontario, Canada, North America and the world. Because of costs, the OPPMB was requested to privatize or sell all yards. „ ' Inequities in the Quebec and On- tari9 systems led the council to pass the resolution that Canada Pork work to correct the differences. In another piece of business, Ron Douglas retired as zone director af- ter nine years, though he will re- main as a Huron County director. When the Huron County Pork Pro- ducers met on January 19 for their annual meeting, there seemed to be a consensus "to get behind the board and push hard to represent the producers' interests." Bout 160 members attended the meeting, showing support for the board in its efforts to forge ahead with co-operative marketing, Dave Linton said, president of HCPP. In his address to the gathering, Linton said, in his personal experi- ence, pork producers are faced with three options to . cope with the changing industry. "The board seems to be crum- bling before (our) eyes and how are we going to get a fair price for our pigs on our own. We have been told alliances must be formed." The first option would be to ex- pand, to buy more land and build more buildings. The result would be "a much larger debt Toad, more dependence on interest rates and lenders demands, increased work- load, greater risk to the environ- ment and decreased popularity with the neighbors." Linton said. Though Linton saw his family benefit by expansion, they would come on the list below many other companies associated with the growth. The second option would be to align themselves with the Franchise Farm opportunities. .production would be geared to 14 day old pigs, but would rely totally on the com- pany. To concentrate on finishing, an investment of $1 .million would be needed and Linton said "there are much better opportunities out there." The third option is the one Lin- ton supports and suggests other producers get behind. "We must • join with other producers and try to make our entire board listen to us. We do not want to follow the American pattern. We must speak with a united voiceto be treated fairly. "I have- no fear of competition with large integrated units as long as I receive the same price per hog," he said. "I have seen producers from Hu- roo, Wellington and'Bruce counties speaking up. This must continue so the board gets its direction from us rather than some elite group that does not represent our views." Linton encouraged the member- ship to give the board their ideas so the direction would be taken from the producers who are raising pigs and making the industry work. Several resolutions were passed at the meeting as well as two mo- tions defeated. The motions which were defeated were to support sup- ply management and to abolish contracts. Concerns were raised with re- gards to packers taking advantage of producers without contract so the council passed a resolution giv- ing the Ontario Pork Producers Marketing Board (OPPMB) control of marketing, including contracts. It was resolved that the OPPMB make producers aware of any plugged hogs in the group sold. The council requested OPPMB inform Agriculture Canada of their opposition to the importation of live hogs from the U.S. Producers saying the potential threat from pseudorabies would financially, devastate the industry. A resolution was passed request- ing that a system be implemented by OPPMB, to provide producers with health and quality information on their hogs, from the packers, to upgrade the status of all Ontario hogs. The council resolved that, in the event of reduced funding from the government for the inspection and grading of hogs, independent in- spectors should perform the duties, TORONTO - Ontario's dairy farm- ers are on a road to changes as the result of the new international trade deal reached last year, said John Core, chairman of the Ontario Milk Market Board. "Now is our oppor- tunity to make decisions that will shape our industry in the way that will be best for both producers and processors given given the new rules." In his address to the more than 700 people attending the board's 29th annual meeting, Core said that the industry is already working to respond to the long-term direction in trade rules. "The message from the GATT deal was clear, governments around the world, including Canada, ib - tended trade barriers to come down and those tariffs would be lowered or eliminated in future negotia- tions," Core said. "Those of us op- erating within supply management programs really have been set on the road toward an open market re- lationship with the U.S. and other dairy trading partners around the world." "We're on the road, whether we like it or not," Core said. "The only real questions are how -many turns will there be in the road, are there any 'caution or stop signs ahead, and how long will it !take govern- ments to reach their destination?" Core summarized the- many changes that Canada's dairy indus- try has made in the last two dec- ades as continuously responded to national and,international market forces. "The changes have begun or have never stopped depending on how you look at it," Core said. "We are at a critical point in our decision making at the national lev- el. I continue to believe that all provinces should agree to the price classification and pooling of returns proposal being discussed •at the na- • tional level," Core said. He added that the industry must be in a posi- tion by August 1, 1995, to be able to pool industrial milk returns with ..as many provinces as possible to price special milk classes competi- tively. ' In addition tot he changes in the ,industry's approach and structure, Core said individual action by farmers will also play a vital role. "We must continue to emphasize increased productivity on our farms," he said. "We will need to even further raise our quality stan- dards so that Canadian produced dairy products --will have a firm place in the mind of consumers as their first choice." Core ddscribed the rising rhetoric being heard from the U.S. about free access to the Canadian market. The American government would like to be able to dump surplus U.S. dairy products in canada while con- tinuing to _keep their market closed to any significant increase in inn- , ports. "In the face of these American demands, Canada must stand up and be counted. No deals, no give - ins, no trade-offs, no backing down from the U.S.," he said. We nego- tiated rights both under the GATT and NAFTA agreements, we al- ways; knew we'd have to fight to defend them, now's the time. We need a period of predictability and stability between now and 2001 or we have no time to adapt and ad- just." "Our federal, government must vigorously defend our tariffs and live up to their promise of gradual change. Anything less will be unac-' ceptable. We must not and will not let them trade us off for some other commodity or industry," Core said. "The road may be unsure but our destination is cleat -we want to con- tinue to provide leadership and 3excellence as a dairy producer or- ganization in the production, trans- portation, and marketing of milk in service to the milk producers, pro- cessors, and consumers of Onta- rio ' You Can Read. All About It in.... ebt ingbanx 1b4flCtftiUA Teeswater Teeswater Printcraft Hart's K, -Fonds Available at... Winm_ Triangle Discount Wingham Stationery Vances Guardian Drugs Vic's Place Sunrise Dairy Maes Deckers McPhee's IDA Pharmacy 'Uhl* Fordwich Dodd's Wroxeter Sanes General : Store It's more than just news... It's your community! The Wingham Advance -Times Box 390 5 Diagonal Road Wingham, Ontario NOG -2W0 3574320Fax: 3574900