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The Rural Voice, 2003-06, Page 65i PERTH 'Mk County Pork Producers NEWSLETTER Pat Louwagie, President 519-393-6424 The Rural Voice is provided to Perth • County Pork Producers by the PCPPA. Intangible costs are hardest to manage Any opinions expressed herein may not necessarily reflect the views of the Perth County Pork Producers' Association. I believe farmers manage tangible costs very well: feed, interest, labour, vet, utilities and even depreciation. However, as the pig business gets more sophisticated, there needs to be another line on the expense side of the financial statement — intangible costs. The intangible costs include the paperwork, applications, permits, community meetings, surveys, political interactions, paper trails, certifications, codes, deciphering laws and even filing this stuff. Too often, these do nothing productive and can even limit good management innovation. What are the cost -recovery methods for some of these intangible costs such as extra space as requested in loose housing, compulsory weaning age, acceptable euthanization techniques or unit size restrictions? It might look good and even feel good, but how do you sustain the operation's profit (first) to change (later)? There is not only the cost to the paper trail but also the cost of training, updating and verifying, especially at crucial time periods. Many organizations are claiming that "society" is demanding certain standards in livestock farms, and in particular, swine operations. This same society does not hesitate to eat pork from Mexico, lettuce from the Dominican Republic, sauerkraut from Poland and import pet turtles from Guatemala without these restrictions. Are these consumers asking for the same standards for imported products and do we have production legislated and verified in one country but not for the other? Who defends cost deferrals down the chain, especially in a global trade environment or is it a subtle trade barrier? "Consumers are demanding it" — you say. That sounds like a nice niche market opportunity, but we know "niche" is usually a myth and only a marketer's dream. If it is an intangible cost that is requested for marketing purposes, then it needs to be allocated appropriately to marketing. I doubt it! It was said we are managed each day by over 35,000 laws and more are imposed each day. We are imposed with more paper trails, certifications, and courses requested such as by-law verification, manure disposal audits, medicine disappearance audits, carcass disposals, gun bylaw, chain saw courses, medicine courses, pesticide certification, weed controls, weight restrictions, signage, road permits, etc. Many of these rules and courses have good intent but are unsympathetic to the situation at hand and the total time required mastering them. Often these requests are said to require "only 10 minutes per day" but that is equivalent to 3650 minutes per year, otherwise stated as one week's work per year. We can only hope there aren't 52 requests a year. The net result is an extra office expense that has no way to get an extra return. As Canadians, we want to be careful that one of our biggest export opportunities — pork — is not made to be uncompetitive by over -regulation. Check your zipper and my bet is that YKK appears on it. I dare you to check it. That's the name of a zipper company in Japan — one of two majors. Surprisingly not long ago, there used to be a zipper company in Ontario (Canadian Fasteners) that had the major share of the global market and now it does not even exist. As a Pork Industry, I believe we need to stay involved, subscribe to supporting organizations and speak your mind. Let the YKK on your zipper be a reminder that an industry, regardless of its market share or benevolence, can disappear.0 — Submitted by Richard Smelski PERTH COUIITY PORN PRODUCERS' PORN 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: Steve Hulshof (Kinkora) 348-8167 Walter Bosch (Monkton) 356-9000 Ted Keller (Mitchell) 348-9836 JUNE 2003 61