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The Rural Voice, 1993-12, Page 651 PERTH County Pork Producers NEWSLETTER John Crowley, President R.R. 2, Gadshill, ON NOK 1J0 393-6403 • The Rural Voice is provided to Perth County Pork Producers by the PCPPA. The opinion expressed within does not necessarily reflect the view of Perth County Pork Producers' Association. Stats Canada has shown per capita pork consurption to be 22.4 kg, up nine per cent from 1990. Concurrently, the Canadian Pork Nutrient Study shows Canadian pork to be leaner than 1986 and leaner than American pork. The loin center cut and inside leg showed a 42 per cent and 47 per cent reduction in fat since 1986. Pork promotion via a big recipe program from Canada Pork is emphasizing the new nutrient data, nutritiousness, versatility and health. The recipe card program should be obvious at your grocery store. Also, the Ontario breeders are making faster genetic progress than most of the other organizations involved in genetic improvement in the world. Since 1980, the economic value of various breeds improved between $5.52 to $11.48 per hog due to genetics. Commercial producers increase a market pig worth about $2 for every reduced millimeter of backfat and $0.40 for each day faster the pig reaches market. HOG INDUSTRY STUDY GROUP Three representatives from the packer and producers have submitted their final report (available by calling the Board). Their main objective was to determine how the Indiana and Illinois price represented the Ontario average price. Although the Illinois and Indiana quoted prices are a barometer of the price, the number of hogs sold live via this route in the U.S. is decreasing as the higher quality hogs are being sold direct to packer usually on a carcass merit program. Each packer has their own unique grading grid and they can identify different lean per centages with the same type of hog. USDA grading does little to distinguish between superior and inferior hogs. The average hog in the U.S. is sold between 240 to 260 lb. live with an Pork consumption up average lean of 49 per cent. Ontario hogs are 51 per cent to 52 per cent lean. The U.S. farm size is increasing very rapidly, thus hogs through a terminal market are diminishing rapidly and may follow the route of the "dinosaur". BOARD RESTRUCTURING The Stratford Regional Meeting challenged the OPPMB's Task Force on restructuring (again)! The difference was based on the recommended reduction of the number of Board Directors per producer, thus questioning the quick adaptability to policy. Change was deemed necessary and the communications and cost cutting methods were endorsed. The quick response to policy development was referred to further study. TRIPARTITE TO END The National Tripartite Stabilization Program (NTSP) is to terminate no later than March 31, 1994, according to the Committee and signatories. This means that each province can end the program when their fund balance is zero. PERSONAL VIEWS There is a lot of speculation about hog prices at this time and very justifiably. I still maintain if you do not know your cost of production, don't waste your time speculating prices. Throughout North America we have seen a lot of large hog operations specializing not only per commodity but also per stage of production, per carcass qualities and towards a regional market demand. We can only continue to track the old corn/hog ratio but the ratio (18) where expansion or contraction takes place, may be different in 1993 with all the consolidation and strategic alliances. Regardless, we must keep our vision globally and never be complacent. Our communication skills, networking and team approach as a small industry in Ontario need definite improvement. Just look at the way we communicate with our customers — the packers. How long would you deal with your supplier, whether it be seed, equipment or feed if the supplier (1) accused you of making too much money; (2) sold you a product then graded its quality; (3) had you put up a bond and financial statement just to do business with them; (4) accused you of not investing in your customers; and (5) would not tell how much product you are going to be shorted on the next delivery. Any one of these accusations would send the salesperson on their derriere by the mere mention. Yet we do this to our packers all the time. We just hate giving up our independence because we fear dependence. Stages of maturity go from dependent to independent to interdependent. We have to stop treating each other as enemies and see the real competition. We need to look at the interdependent alliances that are occurring as our competition. It is not a judgment of what is right or wrong but rather a question of how to remain competitive. It's foolish to think one can do it alone.0 Richard Smelski 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 DECEMBER 1993 61