The Rural Voice, 2001-04, Page 43a bad deal."
The world price for butter is
$1,475 (U.S.) per metric tonne
delivered to destination, Tyers
explained, or about $2.26 per kg.
To take advantage of a world
market cream would have to be
delivered to the Alliston creamery
which would churn the butter at a
cost of $2.58 per kg. Freight,
processing margin and administration
would reduce the farm -gate price to
$1.68 per kg. Any expense that can
be driven out of the system, such as
savings on the cost of transporting
the cream if it was collected at a
central site, could improve the farm -
gate price, Tyers said.
Tyers emphasized that this price
was "a moment in time" because the
world market fluctuates daily as does
the value of the Canadian dollar.
There are ways, however, of bringing
stability to currency fluctuations
using the futures market, he said.
Though that figure is low, farmers
at the meeting pointed out they're
only netting about 81 cents per kg.
for over -quota cream.
Tyers said it might not be a
good business decision to get
into cream production at those
prices. "But if you have room for
another 10 cows and you have
everything else, I'm told it's a sound
decision to export if you don't have
to put in extra capital cost and you
don't have to buy quota."
Some producers present worried '
about DFO retaliation by forcing
cream producers to meet all
requirements for milk producers.
"My sense is DFO will try to co-
operate," Tyers said. "They have to
co-operate. If they're seen not co-
operating they'd be in violation."
Don O'Neill, who as secretary -
treasurer of the association worked
long and hard on behalf of producers
said he was unsure what the reaction
of DFO would be to an export plan
that breathes new life into the cream
industry. "Right now they're
ignoring us," he said. "Maybe they'll
start enforcing all the milk
regulations. Right now they seem to
be hoping we'll all just die off."
Tyers says he's learned over the
years you have to push to get things
done. "If any of you want to ship
export cream ... I don't want to get
you in trouble but if you want
David Tyers: offers to fight for
export butter markets for cream
producers.
somebody to push, I'll push for you."
He pointed out however this could
be a short-term opportunity. If
Canada loses a new WTO challenge
recently brought by the U.S. and
New Zealand, the export market
could be closed down by the end of
the year.
Another avenue for extra revenue
was proposed by Pletsch, originally
from the Ayton/Clifford area but now
operating in the Dundas area, closer
to markets for organic products.
Nutri Spring Farms Ltd. is currently
marketing unsalted, uncoloured
butter marketed through health food
stores and Loblaws. Customers want
butter made with farm -separated
cream with no animal protein
concentrates and no genetically -
altered feeds, she said and she is
working with the Alliston creamery
to meet that demand. "People are
worried about what they're eating,"
she said. "It's a growing concern."
She offered a 25 -cent per kg.
incentive to farmers who could
provide cream for the pilot
project to meet the demand. The
cream would be kept separate by the
creamery then manufacturer to meet
Nutri Spring's specifications.
There seemed to be no rush to
sign up for either offer but the
majority of the producers present
stayed well after the meeting was
over to discuss the information they
had received.0
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APRIL 2001 39