The Rural Voice, 1993-07, Page 57PERTH 04k
County Pork Producers NEWSLETTER
John Crowley, President
R.R. 2, Gadshill, ON NOK 1 JO 393-6403
• The Rural Voice is provided to Perth
County Pork Producers by the PCPPA.
Marketing changes bring debate
The opinion expressed within does
not necessarily reflect the view of Perth
County Pork Producers' Association.
Have you heard of the "deal"
between the processors and OPPMB?
All Ontario produced hogs are to be
slaughtered within our province and, in
return, the processors are buying the
hogs off the auction within a formula
price range.
It has been interesting reading and
listening to producers' reaction to this
action. It is precisely this that I wish to
comment on.
Some condemn this action as just
another indication that the OPPMB is
"in bed" with the processors. The
thought is that the OPPMB is more
worried about the processors'
profitability than that of producers.
Some feel that the Canada/U.S.
border should be open and this deal goes
in the opposite direction. Some feel that
Ontario processors should be allowed to
purchase U.S. market hogs while others
strongly condemn this thought because
of the perceived threat of pseudorabies.
Some producers feel that marketing
hogs corporately (by OPPMB) instead
of an individual basis (producer or by
groups such as genetic groups) is cost-
ing them and all Ontario producers
money. They feel they can add value to
their hogs that corporate marketing can-
not do. They would be willing to guar-
antee specific delivery times, specific
numbers and a specific quality hog for
niche markets. They feel that the eco-
nomic incentive to develop these under
corporate marketing is not present.
Some feel that the OPPMB should
have consulted all producers or OPPMB
councillors prior to making this
decision.
Some feel that the OPPMB made a
good decision. They would suggest that
producers have been receiving less
during short weeks than they should
have, that processors should be paying
more relative to the U.S. market, that it
makes little sense for Ontario hogs to be
shipped to the U.S. while Ontario
processors bring in Manitoba hogs for
slaughter here.
Some feel that they are paying their
marketing fee to the OPPMB to market
their hogs for them. After considering
all factors, the OPPMB directors need to
make appropriate decisions that will be
to the Ontario producers' best interests
both in the short term and in the longer
term. They would suggest that the
industry is best served when producers
grow hogs for the least cost and when
those with marketing expertise sell
Ontario hogs.
Without a doubt, at the farm level,
profitability for the last number of years
has been less than desirable for most
producers. Because of this frustration,
farmers tend to lay blame. Does the
OPPMB deserve this blame? Or are
there other factors at work here? Or is
the grass greener on the other side of the
fence?
No one ever arrives at perfection and
neither does our joint effort at
marketing, the OPPMB. However, the
reason for our profitability problem is
larger than our marketing system. I
agree that refinement and change is
absolutely necessary. Our industry here
needs to be structured in such a way that
our production costs are low, our
production efficiencies are high and our
market responsiveness is competitive
with the large vertically integrated
companies in the U.S. In each of these
areas, I believe the producers of Ontario
need to improve through individual
initiatives and through actions of the
OPPMB.
PCPPA 10th ANNUAL GOLF TOURNAMENT
Wednesday, September 1 — Listowel Golf Club
Tee -off times 9:00 a.m. to 11:30 a.m.
Cost: $35 per person (includes green fees, lunch & banquet)
Banquet at 4:30 p.m.
To register, call Ted Groenestege, 348-8262
Each producer has a voice through
the democratic and consultative
processes of the OPPMB. Each voice is
important and worthwhile. It is through
corporate action of the OPPMB that
allows the producers of Ontario
collectively to do better.
As I said earlier change is still
necessary. This world is very
competitive and only the best will
survive. It is extremely challenging to
make profitable decisions corporately,
yet if our goals are clear, it is not
impossible. Perhaps our problem is that
our goals are not as clear as they ought
to be, or perhaps individual producers
have different goals.
What are the goals of the Ontario
pork producers and what steps are
necessary to achieve these?
For instance, years ago our goal was
to improve leanness in our hogs. With
the grading system in place, Canadian
farmers accomplished their goal of
producing some of the leanest hogs in
the world.
Our goals today are (should be)
different. I think the challenge for the
OPPMB in the next short while is to
help the Ontario hog industry define
these and implement the strategies to
achieve these. Not everyone's goals
will be achieved in this manner, but the
more producers who support the joint
efforts, the easier the task will be. We
can all have a voice in the process.
From my point of view, I am glad the
OPPMB does not consult all producers
or councillors on all decisions before
they are made. Many times on my farm
decisions need to be made quickly. I
have appreciated the energy the OPPMB
has put into consultation whenever
possible, and therefore I am confident in
their sense of discretion.
If you have a response, please give
me a call.0
Clare Schlegel
655-2750
Pork Products available from:
Wayne Hartung at 291-4038
Alfred Young at 348-9352
Fred DeMartines at 393-6812
Martin VanBakel at 345-2666
Dennis Zehr at 595-4771
JULY 1993 53