The Rural Voice, 1988-11, Page 67GREY
446 10th St., Hanover, Ontario N4N 1P9
519-364-3050
' The Rural Voice is provided to all Grey
County Farmers by the GCFA.
County Federation of Agriculture NEWSLETTER
CATTLEMEN WELCOME MARKETING VOTE: submitted the Grey County Cattlemen's Association
The Grey County Cattlemen's Asso-
ciation welcomed the recent announce-
ment by the Minister of Agriculture and
Food that a vote will be held "on wheth-
level of equity should receive a return
that will equal his cost of production and
generate an acceptable level of profit on
each unit (pound) of production. Each
DATE TO REMEMBER: Bruce -Grey All Candidates Meeting, Chatsworth Com-
munity Centre, November 2, 8 p.m. A similar meeting is being planned for the
Wellington, Grey, Dufferin, Simcoe riding. Watch for the time, date, and place.
er they want a producer -controlled regu-
latory agency, with power to set prices
based on the cost of production and set
supply, or want to continue with the
current market-driven industry."
Producer -controlled, supply -man-
aged marketing of beef cattle for slaugh-
ter has been a long-term goal of our
association. Our version of an economi-
cally viable Ontario industry is based on
the expectation that a knowledgeable,
efficient producer with an average in-
vestment in facilities and a reasonable
producer's expectation of earnings from
the industry would be related directly to
his chosen level of production.
The small producer will continue to
require off -farm income. A producer
able to take advantage of the economics
of a larger operation and low debt will
probably be very successful financially.
The inefficient or heavily indebted farm
likely won't be able to remain in busi-
ness without outside financial support.
Recognizing our industry's ability to
produce with a price based on cost of
66 THE RURAL VOICE
production, we are willing to accept
controls on production levels. Quotas
on production must be managed in such
a way that they do not acquire a value
beyond an acceptable licence fee. Our
association supports the plan filed by the
Ontario Beef Producers for Change Inc.
as an acceptable initial proposal.
Our understanding is that the plan
will require government financial assis-
tance in periods when market returns do
not cover the determined cost of produc-
tion. We expect this support will replace
a host of programs now in place to
support the beef industry. The benefits
of many of these grant programs tend to
flow through our industry and directly
into the farm supply sector, through
changes in the price of inputs or business
practices. Support payments under a
cost of production system would not be
targeted to specific inputs like parts,
fencing, or interest rates and so would be
less easily captured by farm suppliers.
Competitive selling of all beef ani-
mals for slaughter is essential in our
view of a successful producer -control-
led marketing system. Our industry has
a wide range of sizes of operations, from
small to very large on both the produc-
tion and processing sides. In our opin-
ion the marketing system must treat all
participants equally regardless of size or
relative importance of the buyer or
seller. Ideally every buyer should be
able to bid on each animal offered for
sale. To the extent that this principle is
abandoned and larger numbers of cattle
are traded privately, the supply -demand
base of the market is eroded, especially
the demand side of the equation.
Of particular concern to our associa-
tion is the apparent increase in numbers
of cattle controlled directly or indirectly
by processors. These cattle may never
enter the market, while affecting nega-
tively the market's price discovery
mechanism to the detriment of a smaller
market participant who hasn't the same
opportunity to influence the market.
We urge all beef producers, includ-
ing dairy farmers who market cull cows,
veal, or dairy beef to become informed
participants in the voting process.0
WE
Dave
WANT YOUR GRAIN!
• Corn
• Soybeans
• Feed Grains
• Quality Oats
• Damaged Grains
CASH and FORWARD CONTRACTS
Call us today for Quotes
Gordon Corrine Ricard Richard Smibert
519-473-9333
H Toll Free (519) 1-800-265-1885
(416-705) 1-800-265-1874
agricultural commodities, inc.
PARK ROAD, HYDE PARK, ONTARIO NOM 1Z0
LAC
london
1112 HYDE
66 THE RURAL VOICE
production, we are willing to accept
controls on production levels. Quotas
on production must be managed in such
a way that they do not acquire a value
beyond an acceptable licence fee. Our
association supports the plan filed by the
Ontario Beef Producers for Change Inc.
as an acceptable initial proposal.
Our understanding is that the plan
will require government financial assis-
tance in periods when market returns do
not cover the determined cost of produc-
tion. We expect this support will replace
a host of programs now in place to
support the beef industry. The benefits
of many of these grant programs tend to
flow through our industry and directly
into the farm supply sector, through
changes in the price of inputs or business
practices. Support payments under a
cost of production system would not be
targeted to specific inputs like parts,
fencing, or interest rates and so would be
less easily captured by farm suppliers.
Competitive selling of all beef ani-
mals for slaughter is essential in our
view of a successful producer -control-
led marketing system. Our industry has
a wide range of sizes of operations, from
small to very large on both the produc-
tion and processing sides. In our opin-
ion the marketing system must treat all
participants equally regardless of size or
relative importance of the buyer or
seller. Ideally every buyer should be
able to bid on each animal offered for
sale. To the extent that this principle is
abandoned and larger numbers of cattle
are traded privately, the supply -demand
base of the market is eroded, especially
the demand side of the equation.
Of particular concern to our associa-
tion is the apparent increase in numbers
of cattle controlled directly or indirectly
by processors. These cattle may never
enter the market, while affecting nega-
tively the market's price discovery
mechanism to the detriment of a smaller
market participant who hasn't the same
opportunity to influence the market.
We urge all beef producers, includ-
ing dairy farmers who market cull cows,
veal, or dairy beef to become informed
participants in the voting process.0