The Rural Voice, 2000-01, Page 57PERTH 'IPI
County Pork Producers NEWSLETTER
Richard Yantzi, President
519-655-2766
• The Rural Voice is provided to Perth
County Pork Producers by the PCPPA
We are at a cross-roads now!
Any opinions expressed herein may
not necessarily reflect the views of
the Perth County Pork Producers'
Association.
At our last district meeting we
were asked by our board director
what we thought the words co-
operative action meant to us. To me it
means to work together with others
toward a common coal. Shouldn't we
strive to establish a common vision
for ALL pork producers where all
can participate with some sense of
security?
A marketing board must always
adapt to changing times. In adjusting
to change we must be careful not to
"throw out the baby with the bath
water". In the past, when we
discovered that we were not getting
U.S. price equivalency, many of us
wanted to deal directly with a packer.
Along came direct producer -
processor contracts. As I write this
article direct producer -packer
contracts make up about 68 per cent
of all the live hogs sold. Platinum
contracts make up about 2 - 3 per
cent in my estimation.
What is going to happen to the live
hog market when direct contracts
make up 80 - 90 per cent of the
market? Will we be in any position
to negotiate with the packers
effectively? We must be careful that
we consider WHY we set up a
marketing board in the first place.
The marketing board was set up
because we realized that we had
strength in numbers. Individually we
have absolutely no negotiating ability
with a corporate entity hundreds of
times larger than most producers.
Marketing boards in co-operation
with government can set the rules of
fair play.
I believe we are at a cross-roads
now. The future structure of the
marketing board is at stake. Do we
want to see it marginalized further, or
should it have a substantial role to
play?
What .are the advantages to the
packer and the producer of a direct
contract? The packer has more
control over the supply, quality, and
pricing of hogs.
The advantage to the producer is
that they might get a time -of -delivery
bonus, a regular shipping time every
week, some other carcass merit
incentives, and perhaps same -day -kill
that increases dressing percentage.
Will all these advantages still be there
when the packers are totally in the
driver's seat?
How could the board offer all the
advantages of direct producer -
processor contracts and still retain
control of marketing? The following
are suggestions:
I. Pool hogs for auction. This could
be the entry level for all new entrants
and future expansion regardless
of size until short or long-term
contracts become available. Contracts
could be offered on a first-come,
first-served basis, regardless of size
of producer, provided that quality
criteria is met.
2. Short-term block contracts (Pool
Plus). This could be the next stage or
preferred choice of producers. These
contracts could be negotiated by the
board with all packers within a day's
driving distance in Canada or the
U.S.
3. Longer-term contracts (Platinum).
These contracts would be contracts
with one single packer for longer
periods of time that would be
negotiated by Ontario Pork. They
could be tailored to a particular
packer's specifications. These
contracts would probably not be
pooled for price because they could
differ, making pooling impossible.
By having Ontario Pork as the
assembler of the hogs. it should
provide equal access to these
contracts for all producers regardless
of volume produced as long as they
had the right kind of hogs.
Determining the right kind of hog
must remain truly objective, tact -
based, measurable by specifications,
and market driven.
Contract transparency must exist.
The proper protocol for these
contracts would have to be given a
great deal of thought.
The next meeting of the PCPPA is
on January 5, 2000 at the Conference
Centre of OMAFRA in Stratford. The
banquet and annual meeting is on
January 26, 2000 in the Elma
Community Centre. Atwood at
6:30 p.m. Call Ken Aitcheson at 393-
5394 or any director for tickets.
Resolutions could be introduced.
discussed and voted on. The guest
speaker is Crystal MacKay. She will
be sharing her humorous insights into
country living.
At this time I would like to
welcome fellow pork producers to the
next millennium and I wish you and
your families good health, happiness.
and more prosperity.0
Submitted by Gerald H. Kolkman
PERTH COUNTY PORK PRODUCERS'
PORK PRODUCTS
• Smoked Pork Chops • Fresh Pork Chops • Stuffed Loin Chops
• Smoked Sausage • Smoked Cheddar Sausage
• Bacon Burgers • Teriyaki Pork Steaks
• Vittorio's BBQ Sauce
AVAILABLE FROM.
Fred de Martines (Sebr.) 393-6812
Martin van Bakel (Dublin) 345-2666
Walter Bosch (Monkton) 356-9000
Ted Keller (Mitchell) 348-9836
JANUARY 2000 53