The Rural Voice, 1983-12, Page 61r
PERTH COUNTY PORK PRODUCERS' NEWS
Foreign rivals
threaten our farmers
and food companies
Canadian farmers and food companies
are facing a growing threat from U.S. and
European government agricultural protec-
tionism, speakers at an Ontario govern-
ment agriculture conference said recent-
ly.
A host of speakers representing a
number of prominent U.S. financial and
agribusiness companies said the United
States and European Economic Com-
munity are hoisting farm supports in
response to growing food surpluses.
The speakers' recommendations,
reflecting current free -enterprise thinking
in the U.S. and conservative government
thinking in Ontario, were to resist similar
intervention in Canada.
"European Economic Community sub-
sidy practices are wreaking havoc in tradi-
tional Canadian and American export
markets nearly every day of the year,"
said Clayton Yeutter, president of the
Chicago Mercantile Exchange, in notes
for an address to the conference.
"This is a vicious cycle destined to ex-
acerbate global economic conditions, and
doomed to worsen most everyone's level
of living. It is a foolish policy, but one
which is politically very difficult to resist."
Figures indicate the stakes for Cana-
dian farmers and food companies are
enormous in this growing climate of pro-
tectionism. Canada is a relatively small
country in world wheat and coarse grains
trade and a trade war could severely hurt
Canadian sales.
A recent study of wheat subsidies by an
Ottawa research firm indicate during the
last ten years Canadian subsidies averag-
ed about four per cent of the market value
of the grain, while U.S. subisides averaged
more than eight per cent and EEC sub-
sidies averaged 10.5 per cent.
Yeutter said the Europeans aren't the
only ones responsible for the growing
climate of protectionism.
Citing a recent U.S. sale of subsidized
wheat to Egypt, Yeutter said: "Unless the
EEC and other 'subsidizers' evidence a
willingness to bring some sanity to
agricultural trade, the wheat flour sale will
likely be a precursor of things to come."
Ken Farrell, a director of the
Washington -based economic research
firm Resources for the Future, said the
U.S. drastically increased government
support for agriculture last year when two
bumper crops created surpluses in the
wake of ten years of low grain stocks.
"Government intervention in agriculture
swung wildly from a level of $3 billion to
$4 billion in the late 1970s to $22 billion to
$23 billion currently; from that of merely
facilitating and applauding trade to that
of subsidizing and threatening to sub-
sidize it further."
Echoing the free -enterprise mood at the
conference, Duncan Allan, Ontario's
deputy minister of agriculture, said the
Ontario government will not respond to
these threats with provincial protective
measures.'
Ontario Sow-weaner
Stabilization Program
The latest production period ended at
the end of September, which means if a
payment is to be made, it could take place
by the middle of November. We have no in-
formation at the moment about any pay-
ment or the amount that might be paid.
This information should be available for
the next newsletter. For information
about the Sow-Weaner Stabilization pro-
gram you should phone Mr. Morris Huff,
Director, Crop Insurance and Stabiliza-
tion, O.M.A.F. at (416) 965.1811.
Draft meat plan
Four of Canada's 11 agriculture
ministers have worked out a draft agree-
ment on a new national plan to shore up
the incomes of beef, pork and sheep pro-
ducers.
They told a news conference they still
have to work out financial and legal
details of the plan and discuss it with
farm groups, the other provinces and their
own cabinets.
But federal Agriculture Minister Eugene
Whelan and his provincial counterparts,
Dennis Timbrell of Ontario, Lorne Hep-
worth of Saskatchewan and LeRoy Fjord-
botten of Alberta, insisted this agreement
presented progress over one announced
at the annual federal -provincial agricul-
ture ministers meeting this summer.
At that time Ontario and the Prairie pro-
vinces proposed a new income stabiliza-
tion plan for livestock producers and got
tentative support from Whelan.
This time, Manitoba Agriculture
Minister Bill Uruski wasn't represented at
the meeting, Whelan said Uruski couldn't
come on short notice, but other officials
said Manitoba is wavering in its support
of the plan.
Quebec and New Brunswick had
observers at the meeting. It was generally
understood that Quebec and British Col-
umbia didn't support the summer plan
because they want to make supplemen-
tary payments to their farmers to cover
higher production costs. The Atlantic pro-
vinces have been non -committal.
Whelan said the ministers need legal
advice on how many provinces they need
to make the plan national. Other pro-
vinces could join later.
However, Ontario and the Prairies ac-
count for most of Canada's beef produc-
tion and more than 50 per cent of the pork.
Quebec produces about 37 per cent of the
pork.
The proposed plan would provide
separate programs for cow -calf, slaughter
cattle, slaughter hogs and slaughter
lambs.
The two levels of government and
PG. 60 THE RURAL VOICE, DECEMBER 1983
farmers would pay premiums into the plan
which would be voluntary for farmers. It
would provide quarterly payments to most
farmers when market prices fall below
their costs of production.
There would be a nine -member advisory
committee composed of three federal ap-
pointees, three provincial and three pro-
ducer representatives.
The programs would be administered
by the federal Agricultural Stabilization
Board.
Pork on your Plate
"Pork, Perfect Pork", a new book just
published. contains recipes drawn from
all parts of Canada by the Canadian Pork
Council. In its 189 pages, the book also of-
fers tips on presentation, micro -wave in-
structions, imperial and metric measures,
and more. The cost to Ontario Pork Pro-
ducers is $4.00 and it is available by
writing the O.P.P.M.B., 15 Waulron Street.
Etobicoke, Ontario M9C 5H3.
The recipe book, "Pork on Your Plate"
from the Renfrew County Pork Producers'
Association is still available from the
O.P.P.M.B. The cost for this book is $2.50.
Forward contracting program
The on -again, off -again forward
contracting program planned by the
Ontario Pork Producers' Marketing Board
is off again, now for an indefinite period of
time.
In a press release, the board announced
that "lack of producer response" has
shelved the program for the time being.
The program was already postponed
twice after being announced in May. Both
times, poor producer support was blamed
for the delay.
The plan needs at least 200 producers
to work, but since less than half that
number have actually signed contracts,
"forward contracting cannot proceed at
this time," and "has been postponed
indefinitely."
The program was designed to allow
pork producers to forward contract hogs
at a known price for delivery in 17 weeks.
In an interview, board spokesman
Helmut Loewen said, "It's a disappoint-
ment we didn't get the response we felt
was initially there."
Despite the setback, he said the board
still believes forward contracting has a
future in hog marketing.
"It's possible it could be discussed at
the annual county meetings early next
year,' Mr. Loewen said. "We've kept the
door open because this idea can work."
After the county meetings, the board
will reassess the role of forward
contracting. If producer interest develops.
the board will go ahead with the plan
again.
In the meantime, the board will still
make information on forward contracting
available to producers and keep on file all
contracts already signed.
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