The Rural Voice, 2005-05, Page 9National Farmers Union -Ontario NEWSLETTER
Ontario Office: R.R. 2, Godfrey, ON KOH 1TO - Phone: 613-273-5545
Email: nfuo@rideau.net Website: www.nfu.ca/on
Cargill consolidates control with takeover of better beef
The takeover of Better Beef
Limited of Guelph, Ontario, by US -
owned agribusiness giant Cargill is a
step in the wrong direction, says
National Farmers Union (NFU)
Ontario Co-ordinator Don Mills,
Chair of the NFU Livestock
Committee.
The takeover, announced April 15,
will extend Cargill's domination of
the Canadian beef packing industry at
a time when farmers are calling for
more independent, Canadian -owned
plants, stated Mills.
"There is no evidence to suggest
that the farm gate price for cattle will
increase as a result of Cargill
increasing its market power," Mills
continued. "In fact, Cargill is simply
taking advantage of depressed prices
in Canada to bolster its own bottom
line."
Better Beef Limited was a
Canadian -owned company founded
in 1972 which had a slaughter
capacity of 1,800 head of cattle per
day. The acquisition of Better Beef
will now give Cargill a major share
of the Ontario beef slaughter and
processing market.
The takeover comes at the same
time as Cargill is expanding its High
River, Alberta packing plant to
handle 5,000 head per day by the fall
of 2005.
Jan Slomp, NFU Alberta Co-
ordinator, said if the federal
government approves the takeover of
Better Beef by Cargill, it will set back
farmers' efforts to regain more
control in the marketplace. The
closure of the U.S. border to exports
of live cattle in Canada has allowed
the major packers to keep prices at
the farm gate depressed. At the same
time, however, these companies are
shipping huge amounts of boxed beef
south to take advantage of high retail
prices in the lucrative U.S. market.
"In spite of tremendous odds,
there are many independent and co-
operative packing plants in the works
across the country," stated Slomp.
"Farmers realize that it's not enough
just to increase capacity. Ownership
and control of Canadian packing
facilities is equally important if those
facilities are to survive in the long
term."
The NFU is supportive of farmer -
led and co-operative ventures such as
the Peace Country Tender Beef Co-
op Ltd. of Dawson Creek, BC, which
aims to process 1,000 head of cattle
per week, with 100 per cent testing
for BSE. Existing and potential co-
operative ventures in Ontario are also
of great interest from the National
Farmers Union-Ontario.0
Ontario Grain first
in Ethanol
Whereas it is provincial policy
to increase the production of
ethanol and bio fuels in Ontario
and;
Whereas existing ethanol
plants in Ontario have received
and are receiving Federal and
Provincial subsidies and;
Whereas existing Ethanol
plants are importing vast
quantities of subsidized U.S.
grains at values far below their
acknowledged cost of
production.
Be it resolved the province
adopt an Ontario -first policy
supporting the use of Ontario
grain first in Ethanol and Bio
Diesel fuels.0
Wildlife Damage to Farmers' Property
Whereas it is estimated wildlife (animals and birds) damage to farmers' property is estimated in the millions of
dollars and rising and;
Whereas regulations set out by the Ministry of Natural Resources restrict farmers from dealing with the problems
and;
Whereas urbanites, environmentalists and naturalists encourage wildlife populations to increase so as to benefit
tourism and the ecosystem, etc. and;
Whereas the cost of damages done by wildlife (animals and birds) is presently borne by farmers and
without any compensation;
Therefore be it resolved that the National Farmers Union convince the Provincial government to establish a
program to pay for all wildlife damage to farmers' property (crops and livestock) and finally that the said program be
administered by Agricorp.0
For information on local meetings contact the following:
Bruce Local — Mathilda Andres 519-368-56.75 _ Grey Local — Bev Schenk 519-799-5584
Hurgn Local — Stephen Miller 519-236-4958 Perth Oxford Local — Ann Slater 519-349-2448
MAY 2005 5