The Rural Voice, 1981-05, Page 30RURAL NEWS IN BRIEF
Farmers don't care about marketing
says Corn ell prof
BY ADRIAN VOS
Farmers couldn't care less about
marketing, was the word from Dr. Max
Brunk, professor of marketing at Cornell
University. He spoke to about 130
professional agrologists, at Centralia
Agricultural College for their annual
meeting.
Farmers are actually concerned about
the price they receive for their product.
What system is used, or who docs the
marketing, is of no concern to them as
long as the price is right, he said.
He explained the difference between
selling and marketing as: "To sell means
to get rid of. to transfer ownership. To
market means to add value thus perform-
ing a service for which someone is willing
to pay. and from which profit can be
derived."
Brunk questioned the wisdom of farm-
ers entering the marketing field unless
they plan to go all the way to the
processing and grocery market. Most
corporate food business started out that
way, he said.
These opinions were in direct contrast
with the position at the same meeting by
William (Bill) Doyle. Assistant Depute
Minister of Agriculture.
Brunk said farmers should switch to a
different commodity if too much of one
commodity is produced. This was better
than to form co-operatives and marketing
boards which he said keep the supply up
and protect the inefficient.
Doyle found the Canadian position.
which is to create new export markets and
replace imports, more positive. Brunk
deplored that and declared consumers
have the right to buy anywhere in the
world at the lowest possible price.
It would also be much better if farmers
supported private industry, Brunk said.
so these companies could do a better job.
He preferred a system of grower -process-
or contracts where both share profit and
losses.
Deploring "police power of the state
Brunk also turned thumbs down on
negotiated prices as in a closed shop
labor union. He said that at present
Michigan state has given a marketing
board the right to negotiate price with
processors.
If a siOemate is reached. the positions
of both parties go to arbitration with the
balance of power in the hands of the state
appointee. The arbitrators must then
choose either one of the two positions. in
PG. 28 THE RURAL VOICE/MAY 1981
effect giving that power to the state.
Brunk called this system "ridiculous".
No one is allowed to buy or sell below that
negotiated price. This results in those
producers unable to find a market
subsidizing those who do. he said.
Brunk was also critical of the food
export efforts of his own country. which
he assumed were the same as Canada's.
He claimed most firms do nothing more
than sell on the domestic market to
foreign importers. The importers reap all
the benefits that should go to our own
exporters he maintained. benefits such as
packaging. finance. insurance and cust-
oms.
"It is not surprising that these skills
have lagged in development. because
exporting often has been regarded as a
disposal operation."
This criticism was echoed by Ralph
Ferguson. M.P.. who said that it is
deplorable that more use is not made
of present fuel cost advantages and a
relatively low Canadian dollar. to estab-
lish beach heads in foreign markets.
Industry and merchants have treated
export markets on the "if and when"
philosophy. responding to cyclical over-
production. he stated.
Dr. Brunk is convinced farmers are
ill-suited to export their own goods. They
are willing to take risks all the time in
their farm operation. but they won't take
any risk with export prices. even when it
is known that "rewards are commensur-
ate with the risks".
Bill Doyle expressed some alarm about
the "dramatic" rise in imports of fresh
and processed products". He said within
one generation Canada will be in a net
deficit food position. as Ontario. Cana-
da's largest agricultural producer. is
already.
Recently the Ontario government has
announced several plans to counteract
this development. Grants to processing
facilities and an export drive arc only two
of them. Doyle said.
Imports to Ontario alone have risen to
S2 billion. much of which could be
produced in thc province. according to
Doyle.
The province has recognized that to
maintain a farm industry. producers need
a decent income. but not through
subsidies, as in the U.K. The Ontario
solution is to develop markets where
farmers can make their own living.
The Foodland Ontario Program. when
fully effective. could replace $800 million
in imports, which is $700 million at the
farm gate. Doyle said this goal is well
within Ontario's capacity.
If the hope to sell an additional 10 per
cent on the export market is realized. this
would add another $260 million to farm
income, he said.
Doyle saw nothing wrong in export
prices of dairy products. eggs and
chicken below the domestic price. Brunk
agreed. on condition that this loss would
be temporary
development.
While agricultural trade surpluses arc
breaking records. their ratio to total
exports is steadily declining, said Fergu-
son. explaining the federal position on
agricultural marketing.
On Doyle's position that exports should
be increased and imports replaced. the
M.P. said that this is generally agreed
upon in all provinces.
Ferguson noted that the USA supplies
Canada with up to 60 per cent of its
agricultural imports. Because of our large
grain sales to Japan and the EEC. thc US
is in third place as our foodstuffs buying
partner.
Declining markets for Canadian foods
according to Ferguson are in apples and
potatoes.
Tomato paste. which is also imported.
is not being produced in Canada because
of "reluctance of multinational corpora-
tions to expand the capacity of Canadian
subsidiaries."
To counteract Dr. Brunk's defense of
completely free trade. Ferguson pointed
out most countries Canada deals with
have export support systems. The US has
a number of them. The EEC has an
export rebate system and the notorious
sluice gate prices. And Canada subsi-
dizes grain exports with the Crow Pass
ra tes.
He also pointed to an O.E.C.D. study
which said Canada's food industry is the
most penetrated by foreign interests of
any of its members.
According to Ferguson. the new
agency. Canagrex, will help to overcome
many difficulties in export markets. It will
be able to pull together many small
companics who are individually unable to
compete with the multi -nationals. Cana-
grex should be able to put Canadian food
exporters on an equal basis. the MP said. •
and only for market