The Brussels Post, 1975-12-17, Page 11MEN'S QUILTED VEST
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On 50% subsidy cut
Milk producers hear explanation
of milk producers earlier to the 50
per cent cut in federal govern-
ment subsidy,
Mr. McKinnon explained in t
lenglity speech that the gaern-
ment could not be acctiscd of
breaking any agreement on sub
sidy for his cutback, but they said
the government was guilty of
breaking agreement to consult
with the Dairy Farmers of Canada
and the provincial marketing
boards on changes in import
regulations. The government
moved unilaterally, he said, to
increase the export of diary
products.
"We're not saying that we
shouldn't import more,- Mr.
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Huron county industrial milk
producers are still upset at the
cutback of the government sub-
sidy but after listening to a cool,
reasoned approach to the subject
by Ken McKinnon, representa-
tive to the Ontario Milk Market-
ing Board for Huron and Bruce
the sting may have been reduced
a little.
Mr. McKinnon was speaking
last Thursday night at a meeting
of the Huron County Federation
of Agriculture held in the. Central
Huron Secondary School, Clinton.
About 50 persons attended the
meeting, most of them milk
producers. The turnout was lower
than expected from the reaction
McKinnon said, "what we are
saying is that we should sit down
and discuss long-term effects,
:What about unemployment due to
the closure of eheese factories?"
He said he felt if Canada was
going to import more dairy
products it should be butter, not .
cheese. CheeKimports have been
increasing in recent years he said,
mostly from European Economic
Common Market countries •which
in return limit imports of
cheese. When the market sharing
quota system was set up, he said,.
imports and exports were about
even. Last Year imports of Cheese
outnumbered exports 25-1.
Mr. McKinnon explained that
the government cutback on sub-
sidy is a reaction to the fact that
Canada is over producing indus-
trial milk at a time when the
international powdered milk is
depressed. The government has
made a commitment to pay susidy
on that portion of milk needed to
meet Canadian market require-
ments.
Mr. McKinnon said therewere
several conditions he felt were
short term which led to the
pvcrproduction. It was a near-
perfect year across Canada for
milk production this year, Pasture
was good all summer long and
hay quality was good. Fluid milk
sales dropped by 1.1 per Cent in,
Ontario and by more than that
across the country meaning. milk. I
usually destined for the table
went into industrial purposes., t
sales of dairy. cattle)
dropped by as much as 60 per,
cent in the, past year (he said he
understood: exports have picked;
up later in the year).
Because of the depressed beef
market, he said, many dairy men,
probably kept cows over the1 • • summer that they would normally
have shipped to market.
Major cheese companies de.:'
creased their inventories by about:
25 per cent, he said and this;:
volume has had to go into other' r:
areas of production..
Mr. McKinnon said he was:
afraid milk producers would over' •
react to the present situation and.
cutback production too much. He
said he thought the market would'
straighten itself out.
Part of the problem may be, he
said, that there is tcomuch quota'.
in the systeM. Because. most'
producers keep under,their quota)
to prevent penalties for overpro21
duction there is more quotas."
alotted than the market requires;)
For instance although the nation.;
al requirement is for $350 milliorl
pounds there are $425
pounds of qtiota. He said tha.
despite the subsidy cutback„th61
O.M.M. B. will continue to alto' •
cat(' quota for the rest of the diar2:1
year until March 31. He said thcl
board could be criticized for thi:11
action - but it• had made tht •
commit t men( to encourage people!
to enter the business and it woulti
keep that committment. He fell
there was a good chance that af
producers would be able to .match
their production in the comim
year hut that if quota cutback '
were necessary they would '
across the board cutbacks, with .
percentage oft every producer!
1 le said he thought there wail .
Kittle need for an increase in fluic:
milk prices in the coming year: •
certainly in the early months, bu
that an industrial milk hike waf I,
likely. I le saw he could foresee .
industrial and fluid milk price:
being closer.
Ile said he felt federal Agrice
lure Minister Eugene- Whelati
could not be blamed for th,
subsidy cutback, that he had trio I
and been turned down. He' saii
he felt farmers •needed to •shop
their support for Mr. Whelan s
he has more power in his fight
with the cabinCt.
(The Blyth Standard j
Calf income
available
before
Dec. 31
E
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Stan Paquette, Huron'
associate ag rep says the Ontari
Beef Calf Income Stabilizatio
Program is paying off this fall.
Average price paid for Ontari,
steers and heifer calves fc'
SeptemberOctober and November
was $29.82 per cwt. Since thi l
guaranteed price was $50.00 pe
cwt the payout to fhe produce
will be $20.18 per dwt.
The payout is calculated or
85% of the cow herd registered c
85% calf crop. t
Eicamplet 450 lb. calf at 889;
calf crop = 382.5 lb. calf = 382$ I
$20.18 - $71.19
$77.19 less $5.00 premitith fr
registration leaving $72.19 pt.
COW registered.
Cheques are to be mailed to th
producers before Decerrtber 3 tsi
Th ose who want, ftirthtli
information can contact till I
Ontario Ministry of Agricultui
and Pood in Clinton'at 482.3428 d 1.
zenith 7=2800, Mr,• Paquette save
THE BRUSSELS POST, OtttivutER 17 1915
Mit