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Home My WebLink AboutThe Huron Expositor, 1984-08-15, Page 19®4 -� THE HURON EXPOSITOR, AUGUST 15, 1984 No magic in hogs Stabilization payment slated for pork BY RICHARD SMELSKI Swine Specialist Expansion in, hog production is still taking place because of the limited entry of any other livestock commodities. Unfortunately, getting into farming often means getting into hog production. Many naive people are depending upon a salvation by expanding into hogs in spite of the obvious industry problems of, decreasing meat consumption; consumerism; increasing costs; and environ- mental demands. The over -optimistic outlook of hog pro- duction will create a ldt of disenchantment and hardship if producers, as individuals, do not put their own business in order before they start or expand. But don't expect the industry, stabiliza- tion or assistance programs to ensure survival, One hundred per cent of the producers will never survive. The competi- tive forces are very extreme. A lot of producers with good equity are prepared to stay in hog production, even if pork prices stay low for the next five years, The challenge is not within Ontario, but from the pork producers throughout the world and especially in the mid -west states. They have some inherent advantages that we have to work 20 per cent smarter just to be equal. The hog industry has undergone some dramatic changes in the past five years, and if you aren't changing or staying knowledg- able of these changes, you may soon find yourself in left field. The greatest change is producers are going high volume - low margin, just like other businesses in our society. Fifty sow operations are becoming a part-time hobby operation not capable of producing enough personal income to sustain a living above a poverty line ($19,700. for a family of four). To make the situation worse, some pro- ducers think they can spend two to three hours in the barn and still remain competitive. You only get what you put into a job. Dr, G. Bowman s thumbrule is "one hour per day per 10 sows', if you're highly capitalized, probably 25-30 hours per sow per year is minimal for a good manager. If you spend three hours a' day in your barn McLaughlin Chev-Olds Ltd. 13 Main St. Seaforth 527-1140 • Service • Selection • Savings • Satisfaction • Leasing Filter Queefl "IN THE HEART Of DOWNTOWN VARNA" 482-7103 expect a three hour return. You're fooling yourself if you think the mechanics in your barn will get yop productivity, especially reproductive effi- ciency. You can't rush into the barn for one to two hours in the morning and one to two hours in the afternoon and expect to survive only on this income. The corn planting disease is one of the consequences. In the last two to three years there's been a dramatic increase in production efficiency, possibly two to three pigs per sow per year, based solely on management. There was no magic in the feeds, buildings or vaccination. If you're not willing to accept the personal challenge - accept the consequences. If you call yourself a businessman accept a businessman's approach to cost of produc- tion control. This is accomplished easiest by maintaining maximdm volume for your capital, at least operating costs. The challenge is yours. Some producers are naive enough to think they can enter or expand in hog production without an apprenticeship. You car 't start with a 100 sow operation anymore than starting a corner garage and expect to succeed, Most producers starting 15 years ago with $100./acre land costs, 6 per cent interest and $95./ton feed costs, were able to cope and survive. Even then, since 1941 there was a loss of 2500 pork producers per year_up to 1983. The business is no less demanding today, in spite of the fact that in the last four years the number of hog producers is increasing. Someone is going to have to pay the price. In order to survive farmers will need to know the basics and how to apply them at least cost. Basic knowledge of c.f.m./hog, lysine levels, capital turnover, sow open days, computer terminology are only a few examples. if you do not move with the industry - someday you'll have to decide if you want to remain in the business jike the 2500 producers per year since 1941. Never assume the situation will improve, The average cost of production has and will always equal the average market price. The challenge is yours, not the consumers. INSURANCE Call • LIFE and HEALTH • R.R.S.P.'S & INVEST- MENTS • ANNUITIES • GROUP BENEFITS • GUARANTEED INVESTMENT CERTIFICATES BOB McKINLEY RR 3 CLINTON Tei: 482-3714 LICENCED WITH Dominion Life THE DOMINION LIFE ASSURANCE COMPANY Re -Elect Murrayy iff r Working for you in Huron -Bruce For information call: CAMPAIGN HEADQUARTERS 887-9546 SEAFORTH-527-1283 CLINTON -482-7677 EXETER --235-1555 GODERICH— 524-2149 LUCK NOW -528-2245 WINGHAM —357-1799 PubIShed undo, 9 AuthOnly 01 Alfred R000 Otht,al Agent for Muoay Cordal Headpuart,s ers Mien St nnsets, Ont govern- ments Both the federal and provincial have recently announced that they will be making payments from their stabilization programs to pork producers. Under the Federal Agricultural Stabiliza- tion Act (ASA) for hogs marketed between Apr. 1, 1983 to Mar. 31, 1984, a market hog producer will receive $6.54 per hog market- ed. Each producer is limited to the federal maximum of 12,000 hogs. Claim forms wil. be mailed to all producers who are registered with the Ontario Pork Producers Marketina Board: Payments under the Ontario Sow-Weaner Plan will be made to producers who were enrolled in period eight that covered, the period of Oct. 1, 1983 to Mar. 31, 1984. The Ontario Sow-Weaner Plan, which is based on Federal ASA slaughter hog data to ensure compatability with the federal program, payments to enrolled producers when the price of slaughter hogs in a six-month period, Plus any federal payments, falls below the 95 per cent ASA level. Under the Ontario plan, payments for period eight to enrolled producers will be as follows: 1. Weaner producers (those not marketing slaughter hogs) will receive $57.72 per sow enrolled, 2. Farrow -to -finish producers will be able to receive the full federal payment of $6.54 per hog marketed. A lesser' payment than the $57.72 per sow will be made from th Sow-Weaner Plan to account for the payor nt received 'under the federal program. Th amount of $4.36 tines' the number of hogs ( aximum of 9.6 per sow enrolled) . marketed uring period 8 will be deducted from the ovincial payment. The 54.36 is the difference between the 90 per cent and 95 per cent support levels. For example, a hog producer who registered 50 sows during period eight of the Sow-Weaner Program and shipped 900 market hogs from Apr. 1, 1983 to Mar. 31, 1984 of which 450 were shipped during period eight, would receive $924.00 (50 sows x 557.72 - 450 market hogs x $4.36) from the Sow-Weaner Program. As well, the producer could receive $5,886,00 (900 market hogs, x $6.54) from the Federal Stabilization Program. Meeting for growers Soybean growers are invited to. attend 'a tour of soybean fields in Morris and Grey townships to discuss production and market- ing practices. The tour is to begin at 7:30 p.m. on, Wednesday, Aug. 15, It will be hosted by Gerrit Van, Keulen, President of the Huron Soil and Crop Improvement Association, Don Martin of Ethel and Neil Hemingway of Brussels. The tour will begin at the soybean field of Gerrit Van Keulen on Highway #4, 1% miles south of Wingham at 7:30 p.m. Please watch for signs. The tour will be an opportunity for growers to share working ideas for successful soybean management. staffed spy to go C°ooda. WHITE SWAN PAPER TOWELS 2 roll pkg. GENERIC RIPPLE 8 REGULAR POTATO 7 CHIPS 200 Gm. FROZEN 'SAVE 70" HOMESCOOP ICE 46-4,, 7 9 e CREAM Redg. litr:ea #MIX OR MATCH FROZEN WELCH'S' GRAPE JUICE 99 or MOTT'S APPLE JUICE 12.5 OZ. LIQUID PALMOLIVE DETERGENT 9 9 1 litre Reg. 3" FROZEN NEILSON'SAVE 50"/ 9 AM SANDWICH f��i ICE CREAM 8, ICE CREAM BARS NABISCO SHREDDED II 59 WHEAT 450 Gm CANADA No. LARGE GREEN PEPPERS 4 F� 00 MOX OR MATCH CANADA No 1 Regular 8 Seedless CUCUMBERS 3 F ° 0 R BUNCH CARROTS i00 HAND SOAP Pkg of 6 Reg. 1— • NEW JELLO 'LIGHT' 2 (F)1_°° R 5 flavours IRISH SPRING SOAP Pkg of 3 BAKERY 1.49 DEMPSTER 100', WHOLE WHEAT BREAD675 Gm 69 WESTON WESTON 9 LEMON 9 ANGEL 11 4 FILLEDPkg FOOD Q�NS of 6 �A<�E 425 Gm FOOD stman,.. Mitchell SUNDA�SN 1 O' 6 0,1 ,FT.FPVF THE RIGHT TO LIMIT OUANTiTIFS SPORE HOURS MONDAY to FRIDAY S o m to S p m SATURDAY S o m to 6 p m SUNDAY 10o m to6p m r' .. - •HA,,,,o .ai , Immg MONOA Y AT OP M 5 ET PLEASE ROTE: Adrertiaing done by emSt Mary, Mere eery differ tree, Mitchell', 1.IMITER gaming Avid