HomeMy WebLinkAboutThe Huron Expositor, 1989-03-29, Page 2020A - THE HURON EXPOSITOR, MARCH 29, 1989
FINISHING TOUCHES - Workmen put some finishing touches to
the additon to the Seatorth Manor, seen here from the original
portion of the building. Housecleaning, and a few basic tasks, are
all that remain to be done before the new segment of the nursing
home can be put into use. Some work still remains to be done in
the rest home portion of the building, and renovations are
scheduled to begin soon in the Manor House itself. Mcllwraith
photo.
Demand, free trade and quota face Egg Producers
Increasing processor demand; free trade ducer groups, both here and abroad, to en -
implementation; international trade sure that Canada's supply management
negotiations and quota management, are systems remain fully protected under
some of the important factors facing On- GATT.
tario egg producers, according to the On- Morden also addressed the growing atten-
tario Egg Producers' Marketing Board. tion to quota management issues. A report
Board Chairman Gerald Morden told by the Agricultural Council of Ontario,
delegates to the 24th annual meeting in released in September, proposes a radical
Toronto that, "these issues will demand new and fundamental change in the way quotas
initiatives and new directions for the Board are administered and transferred. While the
and for the industry as a whole". Egg Board supports the intent of the pro -
The Free Trade Agreement, which took posal, "we have serious reservations regar-
effect January 1, continues to present con- ding the feasibility and long-term impact,"
cerns for the industry. Morden said that, he said. Creditor security on quota also
"despite numerous discussions with govern- became an issue last year, following a re-
ment over the past year, the effects on our quest by the Canadian Bankers' Association
system of the new global imports, as well as to include quota under the Personal Proper -
the legality of our export surplus removal ty Security Act. Morden said such a move
program, have yet to be determined". As would undermine the intent of supply
the major importer of U.S. eggs, Ontario management marketing by allowing for
stands to be the most affected by an deci- creditor ownership of quotas and leading to
sions regarding the new global imports. The a loss of control by Marketing Boards. For
Board, therefore, has taken the position that these reasons, the Ontario Supply Manage -
these allotments be made in such a way as ment Boards collectively and unanimously
to minimize the disruptions to established denied the Bankers' request and offered, in -
import patterns and to reduce the need for stead, to explore other options that would
additional U.S. imports. satisfy both creditors and producers.
Of greater concern than free trade is the In presenting hisreview of the past year,
current round of negotiations of the General General Manager Brian Ellsworth describ-
Agreement on Tariffs and Trade (GATT). ed 1988 as a year of considerable change. Mr. Ellsworth concluded that the Ontario
"While it is still too soon to determine the Higher feed prices in the last hall of the Board looks forward to working with CEMA
outcome of these very important negotia- year resulted in a dramatic increase in the and the industry in developing a system
tions,. it is not too soon to express our posi- producer price for eggs. Prices rose from 96 which will supply all the Canadian market
tions and concerns." The Canadian egg in- cents per dozen at the start of the year to with Canadian product at a price that is fair
dustry is maintaining close involvement and $1.10 by year-end. According to Mr. not only to consumers, but to producers as
consultation with governments and pro- Ellsworth, this increase led to some 'con- well.
sumer resistance for table eggs and added
to the spread between producer and pro-
cessor prices. Table egg sales in Ontario
declined by about one per cent in 1988, but
was offset by an increase of nearly two per
cent in processor demand. Despite higher
total egg consumption, Ontario surplus in-
creased 10 per cent in 1988.
Increasing demand in the food industry
for processed egg product, together with
higher surplus levels, has created con-
siderable financial problems for CEMA and
its surplus removal funds. Despite.a two per
cent national quota cut (three per in
Ontario) January 1, 1989, and levy increases
totalling 21 cents over the year, producers
face additional levy increases plus a further
two per cent quota cut in August this year.
Mr. Ellsworth explained that Ontario Board
is concerned with these moves and believes
that fundamental changes are needed to
move eggs from the table market to the pro-
cessing market in a more cost effective and
efficient method. Given the growing pro-
cessor demand, it is clear the system needs
to be redesigned,otherwise under the pre-
sent system levies will continue to escalate,
he said.
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