The Citizen, 1992-10-28, Page 9THE CITIZEN, WEDNESDAY, OCTOBER 28,1992. PAGE 9.
Cream producers at crossroads says director
The future of the cream industry
was a hot topic at the annual meet
ing of the Huron County Cream
Producers in Belgrave, Oct. 24.
Huron-Perth District Director
Ivan Steuck said that cream pro
ducers are at a crossroads and that
many may think it easier to just
tum back.
The key points raised were the
cut of 1.4 cents per kilogram in the
butter support price and the proba
bility of a 30 percent reduction over
a period of time according to rec
ommendations of the Canadian
Diary Commission (CDC), though
not necessarily to be imlemented.
In the past year two creameries
have gone out of business.
Facing a likely deficit of
$16,900 calculated on 100 percent
production, Mr. Steuck says the
provincial board is cautioning com
mittees to be careful with funds.
He also said the new producer
program has been discontinued.
Chairman Charles Regele said he
had heard there will be few quota
cuts because of the balance
between butterfat and solid non fat
product.
Executive member of the provin
cial board George Stock agreed
saying that the quota has been set
on solid non-fat and there's no rea
son to cut because then the surplus
is on butterfat.
Mr. Duskocy asked what would
happen as a result of food quality
being down. Mr. Stock said cream
productivity in August was up eight
percent over August 1991 while
milk is down 7.7 percent. Cream is
also up four percent for September.
"So sure, the feed quality is down,
but we’re starting the year with the
same over productivity trend and
we may see full quota utilization."
Someone asked Mr. Stock what
was going to happen to the butter
fat market because milk producers
are over shipping on their fluid
F arm
Brussels Livestock Report:
Light run of pigs but
cattle sales steady
Sales at Brussels Livestock for
the week ending Oct. 23, were: fed
cattle, 1199; cows, 277; veal
calves, 130; sheep and goats, 60;
stockers, 2500; and pigs, light run.
The market at Brussels Livestock
saw all classes of cattle selling on a
good steady trade. There were 854
steers on offer selling from $87 to
$91 to he high of $106. Twelve
steers consigned by Scott Johnston,
Bluevale averaging 1316 lbs. sold
for an average of $91.10 with sales
to $106. Sixteen steers consigned
by John Barbour, Orangeville
averaging 1379 lbs. sold for an
average of $94.25 with sales to
$104.75.
Eleven steers consigned by
Ricklend Farms, Ltd. Auburn
averaging 1273 lbs. sold for an
average of $91.32 with sales to
$95.50. Three steers consigned by
Ken Johnston, Bluevale averaging
1166 lbs. sold for an average of
$91.46 with sales to $95. Nine
steers consigned by Alton O'Neil,
Lucan averaging 1376 lbs. sold for
an average of $89.19 with sales to
$94.75.
Forty steers consigned by Allan
Lewis, Lucan averaging 1355 lbs.
sold for an average of $89.48 with
sales to $94. Five steers consigned
by Bruce Eden, Arthur averaging
1250 lbs. sold for an average of
$90.04 with sales to $94. Twenty-
one steers consigned by Gerald
Geisel, Elmira averaging 1425 lbs.
sold for an average of $89.50 with
sales to $94. Forty steers consigned
by Maple Emblem Farms,
Dungannon averaging 1334 lbs.
sold for an average of $90.02 with
sales to $93.
Fifty-four steers consigned by
Carlyle Thomson, Parkhill
averaging 1420 lbs. sold for an
average of $90.47 with sales to
$92.20. Twelve steers consigned by
Dale and John Taylor Farms,
Creemore averaging 1492 lbs. sold
for an average of $86.12 with sales
to $90.35. Twenty steers consigned
by Cunningham Farms, Lucan
averaging 1358 lbs. sold for an
average of $87.96 with sales to
$90.
There were 323 heifers on offer
selling from $87 to $91 to the high
of $96. Eight heifers consigned by
Glen Johnston, Bluevale averaging
1041 lbs. sold for an average of
$86.93 with sales to $94.50.
Eighteen heifers consigned by Bell
Hackett, Lucknow averaging 1127
lbs. sold for an average of $88.12
with sales to $92.50. Nine heifers
consigned by Maple Ridge Farms,
Brussels, averaging 1088 lbs. sold
for an average of $87.98 with sales
to $90.50.
Twelve heifers consigned by Neil
Faulkner, Moorefield averaging
1123 lbs. sold for an average of
$87.55 with sales to $91.25. Three
heifers consigned by Murray
Smith, Dublin averaging 1200 lbs.
sold for an average of $87.38 with
sales to $91. Fifteen heifers
consigned by Mux Lea Farms,
Woodstock averaging 1237 lbs.
sold for an average of $86.13 with
sales to $90.50.
Continued on page 10
Duskocy named,
chair of Huron
Cream Producers
The Huron County Cream Pro
ducers elected their executive for
the next term at their annual meet
ing in Belgrave Oct. 24.
John Duskocy of RR4, Brusseh
was named Chairperson ano
Charles Regele of RR1, Dublin is
Vice Chairperson. Bob Doug al of
the Centralia area is Secretary-trea
surer. Leland Harkness is delegate
and Bill Dechert is alternate.
The executive will attend the
meeting of the Ontario Cream Pro
ducers Marketing Board in Toronto
on Nov, 9.
quota which puts a surplus on the
industry in a market that no longer
wants butter fat.
"Merging two quotas is putting
all milk producers on an equivalent
basis. This is helping to administer
the milk coming out of the cow and
making the producer responsible
for what he puts on the market,"
said Mr. Stock.
It was ntoed, however, that it is
getting difficult to get a share of the
market place when the market is
shrinking. Mr. Stock said the CDC
sets a basic price on butter fat and
solids non-fat. On Aug. 1 the CDC
came close to cutting butter fat
drastically to meet the changing
market. "That was agreed to by
nearly everyone but cream produc
ers at the national level," he said.
"However, that would put extra on
solid non-fats so the price change
never came about."
"What about the future?" some
one asked. "How can we afford a
price cut?"
"The way it's stalemated now, if
you take a cut on the cream you'll
take it on the milk side," said Mr.
Stock.
"Don't they realize if they cut the
butter fat price, they cut our
throats?" asked a concerned pro
ducer. Many agreed if there were to
be cuts they couldn't stay in the
industry.
The committee presented a list of
proposed resolutions for the pro
ducers. The principle one was the
future of the board.
Prior to voting Mr. Regele said
he had contacted Jack Riddell to
see if the board could hire him as a
consultant, to gather information
which may assist the industry.Not-
ing that he had felt "a little
depressed" at the last meeting of
the board he said "Mr. Riddell was
an aggressive agricultural leader
and I hoped that maybe he could
get action that the board couldn't."
It was mentioned his fee may be
too much for the board, but as no
response had been received from
Mr. Riddell at this point, Mr.
Regele said it was just something
for the board's consideration.
In making the resolutions Mr.
Stock urged the board to reach a
consensus in order to make changes
from within. They need a strong
mandate to present to the Market
ing Board.
A resolution passed that an inde
pendent tribunal of five volunteer
cream producers be approved by
the delegates at the annual meeting
to negotiate the best possible deal
with the OMMB. This tribunal will
be reporting to the cream board.
Final approval should be by a vote
by the cream board and if not
accepted it would go to a producer
vote.
Also, if the board can negotiate
payment based on Multiple Com
ponent Pricing (MCP) the quota
should be considered equivalent to
MSQ Pool II OMMB, so if it
switches to non-solid fat, the cream
producers get their share.
Further the recommendation asks
that producers who cannot meet
MSQ standards be given fair mar
ket value for their quota allotment,
based on current market clearing
prices for 100 percent of their
quota.
As well, the recommendations
suggest that any producers wishing
to continue shipping cream in pails
should be allowed to do so without
upgrading their premises. Their
quota allotment is theirs to use as
long as they wish. The quota is to
be made non transferrable except
within family or returned to the
board for compensation.
The board is asking that upon
approval of the deal from the tri
bunal it and the cream board be dis
solved.
Any monies in trust of the board
after all expenses are paid should
be returned to the current cream
producers based on current quota
holdings.
Mr. Slock warned producers not
to forget that milk quotas are not a
given.
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