The Rural Voice, 1991-10, Page 42NEWS
INQUIRY SOUGHT
INTO PRICE SPREAD
Federal MP Ralph Ferguson is call-
ing for a Royal Commission of Inquiry
to examine the consumer price increases
following release of a study he did on the
widening gap between farm gate and
consumer prices.
Ferguson, a former Liberal agricul-
ture minister, wants special emphasis
placed on the concentration of power in
the marketplace and the distribution
sector, and has grave concerns about
concentration of power in the hands of a
few buying groups.
The study, called Compare the
Share, illustrates the differences be-
tween farm prices and wholesale and
retail prices. Ferguson says that proces-
sors are not necessarily to blame, and,
like farmers, they too have been closing
in record numbers. In many cases, the
price increases of the product after it
leaves the processor and is bought by the
consumer far exceeds the rate of infla-
tion on an annual basis.
The total sales of one large grocery
chain alone ($7.lbillion) were 32 per
cent more than the total value of all the
chickn, turkey, eggs and milk pro-
duced in Canada, he says.
Canadians spend less on food than
any other country in the world, except
the U.S. In 1986, Canadians spent an
average of 11.5 per cent of disposable
income on food, which was a drop from
13.4 spent in 1984. Americans eat the
cheapest, at 10.4, while Greeks spent
34.6 per cent.
His study of the comparison of the
costs of various food items shows that
over the ten year period from 1980 to
1990, farm gate prices increased very
little, and in fact in the case of grain
prices, actually declined.
Those lower prices, however, have
not made it to the grocery shelves, Fer-
guson says. While grain prices fell from
1980 to 1990, a box of corn flakes
increased by 94.5 per cent from 1980 to
1989, while a box of soda biscuits went
up by 235 per cent, and cookies jumped
135 per cent.
Chicken prices jumped 87 per cent,
at the stores, while farmers only re-
ceived 25.8 per cent more. There were
38 THE RURAL VOICE
more modest increases in eggs — 18.3
per cent in the stores and 14.1 per cern to
the farmers, but turkeys were up 12.8 per
cent to the farmer, and double that —
25.8 per cent — to the consumer.
Even supply managed marketing
boards, which have been attacked by
consumer and industry alike recently,
are very efficient in keeping food prices
down, says Ferguson. Canadian far-
mers have increased their productivity
per cow by 73.5 per cent since 1971,
compared with only 46 per cent in the
U.S. and 3.5 percent in Western Europe.
The situation is just as bad with red
meats. While farmers only received 6.2
per cern more for their pork and beef,
consumers paid 49 per cent more.
With all commodities averaged to-
gether, Ferguson says farmers saw their
revenues go up only 0.2 per cent be-
tween 1981 and 1989, while their input
costs went up 16.5 per cent.
It's no wonder farmers are going
broke, Ferguson points out, and Canada
cannot expect to have a viable agricul-
ture industry if farmers' incomes are left
to the whims of world markets or a few
very powerful corporations, some of
whom are not even Canadian owned and
who ship their profits outside Canada.
Farmers, Ferguson contends, des-
perately need a fair share of the consu-
mer dollar, or they will disappear.
"The government needs to decide to
give Canadian farmers the ability to
maintain or expand a viable, prosperous
agricultural production and processing
industry," says Ferguson.0
by Jim Fitzgerald
WHITE BEAN
INITIAL PAYMENT
Ontario white bean producers will
receive a lower initial payment than last
year. Down from $12.70/bag from last
year, the 1992 initial payment is set at
$10.57/bag, or $232.97/tonne, by the
Ontario Bean Producers' Marketing
Board (OBPMB).
With a $5.07 OBPMB licence fee
deduction, producers net $227.90/
tonne. The licence fee is down from last
year's $5.70 because the board is dip-
ping into it's reserve funds.0
FARM WOMEN'S
CONFERENCE
Farm women will be able to recharge
their spirits at the Fifth Nation,l Farm
Women's Conference being held No-
vember 21 to 23 in London, Ontario,
says conference chairperson Donna
Lunn.
During these times of uncertainty in
Canada's agriculture industry, it is com-
monly the woman — wife, mother, part-
ner — who tries to keep the family unit
together when stress threatens to break it
apart.
Recognizing this situation, confer-
ence organizers have included speakers
who will tackle problems of easing the
"triple burden," equality, and finding
positive solutions to family violence.
Other sessions will emphasize and
celebrate Canadian farm women's con-
tributions to Canada's most important
industry — agriculture. One session
will deal with the image of farm women
as professionals, while during another,
the results of a recent survey will be
released, presenting a clearer picture of
Canada's farm women.
For more information, contact Pro-
vincial Co-ordinator Rennie Feddema,
519-289-5756, or Betty Seminiuk, R.R.
4, Thamesford, Ontario NOM 2M0, 519-
285-2640.0
INTEREST PROGRAM
DEADLINE OCT. 31
The deadline for returning the appli-
cation for the Farm Interest Assistance
Program is fast approaching. Forms,
which were mailed out in June, should
be returned by October 31.
Farms in need of financial assis-
tance, and with a minimum gross in-
come of $15,000, can apply for grants
under this one-year, $50 -million pro-
gram.
Farm businesses owned by one per-
son can get a maximum of $8,000 to
offset interest costs. Farms with more
than one owner will receive a maximum
of $12,000.
For more information, call your lo-
cal Ontario agriculture ministry office.0
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