The Wingham Advance-Times, 1974-10-03, Page 15Crossroads
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SOME FARMERS blame big
ers, by scattering their buildings,
small producers. Mrs. Ross -says
systems: one for farmers who labor
investors from metropolitan
producers
come out
for the egg surplus. Others feel that
of the situation in a better
when
areas
It
comes to quotas
on the farm with their wives and children,
who don't have to make a living solelif
there
big produc-
than the
different
One for
a farm.
position
two
and
from
Millions of eggs are rotten, which in the end it had to 'destroy.
Officials are .exchanging caustic Mrs. Plumptre claimedthat
remarks. Egg producers are CEMA was doing'a bad job and'
complaining about the ever, in, the consumers were getting hurt,
creasing levy. And. everyone is Mr. Whelan reef rted that she
talking about the national egg, didn't know what she was talking
scandal.about.
But should the federal agricul. To all this, Norman Treleaven,
turn minister, Eugene Whelan _ owner of- Mount Forest Produce,
and.chairman of the Food Paces shrugged his shoulders. "It is all
Review Board, Beryl Plumptre,' lright to haveproduction control,"
ever. visit egg producers. <And . ,.lie remarked, "but the situation
rs ridiculous."
Listowel and Wingham, it is "Theob
graders around Mount Forest,1_ las become
gem," said Sinclair
likely Mrs. Plumptre would be Ross of Rothsay, who has been in
booed and Whelan applauded. the egg business since be was 14,
Mrs. Plumptre would be booed : "is too many eggs , all over
because she is blamed for giving,. ; Canada and the price of an egg is
bad publicity, not only to the . too low."
Canadian Egg.Marketing Agency- "I would like to know where all
(CEMA), but also to the egg ;'the eggs are coming from," said
producers. 'b'red Benham, RR 1, Dundalk,
Whelan would be applauded*,, and in egg production for 33
mainly because he has defended ,;years. "I am producing fewer
CEMA, which egg producers and eggs now than in the past."
graders in the area, by and large, "Let me tell you something,"'
feel is trying to do a good job, but one farmer stated, "and don't
also because they feel he's tilos you dare put my name in that .. .
mately the man who will do what japer The problem is big pro -
they want: help, them stay to . Rducers. They are the ones who
business. true creating a Surplus."
Of course, these are views ex- 1 A surplus? -
pressed by a small sample of s "I can sell all. the eggs I can
area egg producers and graders, get," said George Leith, owner of
but while all farmersdo not al- Listewel Prod.�_.,ce, Listowel, "and
ways agree, they belong to the "pot a single customer has told me
same breed of men and women the price o •eggs is high. It's the
who live under the shadow of the chealiest thing they can buy."
unpredictable, nature. lie has a farm with 20,000 hens
The egg scandal hit the head *`on which we depend", but is a
lines when CEMA.announced that ;grader for producers from as far
it was destroying 15 million eggs as "the lake", and has been in
because they were rotten. While the egg business since 1937. e
the clamour was still in. the air, spoke with authority, duo ' g
CEMA slcnounced thi t an addlk,,,figtiret with ease.
tianal 44 iuill;on fgga Wore c 'Reach+ to any que-Stroir on
spoiled. the egg situation vary. Some
Destroying millions of eggs people are caustic, some are sure
was the scandal. Some people, who 'is wrong and who is right.
particularly editorialists and But all -are puzzled. There are
cartoonists, saw something im- some. things that are definite,
moral about it when millions of though.
people in the world are starving. The Canadian Egg Marketing
But the egg problem was there Agency came into being through
before the scandal, which gave the controversial Farm Products •
birth to CEMA to ensure that Marketing Agencies Act. The
producers got the price they were theory behind the formation of
asking. CEMA fixed the price of the agency was that the price of
eggs for • producers, charged eggs, per dozen,r.would be set by
them a levy, gave them quotas decree rather than by supply and
and bought the surplus eggs demand. That would give the
producers the prices they want-
ed.
"They should let supply •and
demand take care of it," Mr.
Treleavan said.
"Supply and demand is con-
trolling the situation now," stated
Mr. Benham.
To support the decreed prices,
production would be tightly con-
trolled by tough government
legislation.
The legislation meant that pro-
ducers delivering more than 200
dozens a week should each have a
quota based on 100 per cent of
their previous three years'
weekly delivery.
"That wasn't bad," Mr. Ross
said. "They had to begin some-
where."
Elwyn Nicholson, RR 2, Hol-
stein, agreed. "The market
should be spread among us since
we are all producing," he said.
But he doesn't deliver over 200
dozen eggs a week and is,
therefore, 'not on a quota.
While a producer can deter-
mine the number of hens he will
keep, there is no way he can de-
termine how they are going to lay
eggs.
"It's just like corn," Mr.
Nicholson observed. "One year
you get a good crop. Next year
you may have a poor one. But you
have plowed the same amount of
land, spent the same amount of
time and sowed the same amount
of seed."
All egg producers know that
hens don't lay well in hot
weather. In addition, they have a
peak period. They start off by
laying fewer eggs when they are
young and have a peak period
when they mature and then level
off.
•
DING -,--Egg producers say that the price of feedmeal
ens has increased by almost 100 per cent a ton. Some.
ucers like Sinclair Ross, Rothsay, produce their own
feedmeal on the farm. But the price of eggs is still too low,
producers say, and must go up if they are to stay In
That's Why a farmer can't de-
liver the same amount of eggs
every week the whole year. Those
who have only one building have
to empty it for cleaning.
This netessitated some adjust-
ment to ensure that the producers
met their quota. Thars how
credit quota came into being.
First it was seven times the nor-
mal quota. This meant that if a
producer did not send any eggs,
he still could deliver as many as
seven times his weekly quota.
The number went up to 20 but was
reduced `to 12. after the destruc-
tion of the 28 million rotten eggs.
The original quota ' was never
intended to stay there for ever, ff
anything, it was meant to main-
. tain production at a certain level.
The surplus, though, continued to
go up and the quota was cut.down
accordingly. At the moment it is
75 per cent of the original and
may be reduced.
The reduction of the quota
means that the farmers have the
problem of carrying the cost of
production below capacity. And
they must stick to the quota. This
is because they do not get paid
the same amount for the eggs
above their quota that they take
to graders and of course they
can't sell them privately—not for
human .consumption:
The producers who are not on a
quota - (those who produce less
than 200 dozen eggs a week) are
supposed to sell their eggs
through the graders and thus pay
the levy.
But some of them don't. One
producer who is on a.quota said a
lot of them simply sell all their
eggs on their routes.
Existence of a quota does not
irk producers as . much as the
increase in levy. -"After all, we
are trying to control the surplus."
While appreciating the exis-
tence of the Ontario Egg Pro-
ducers' Marketing Board, pro-
ducers openly dislike the levy.
"The board ,has ' done one
thing; Mr. N''iioOn a ltd, "At
Beast n ► we` got tlnr`same l
for a dozen eggs every week."
"It's trying," Mr. Leith said.
"It's doing the best it can."
It is of no consolation to the
producers that the levied money
goes to the operation of the board
and to paying for Ontario's share
of the 28 million rotten surplus
eggs that were destroyed, and for
the $10 million debt incurred by
the CEMA,
While not directly referring to
the levy, Mr. Leith ode a -
ment that shifts the surplus re-
sponsibility to the Federal Gov -
eminent, and, by implication, the
levy. '
The Federal Governunrent, Mr.
Leith said, should not have -
lowed. the importation of eggs
from the United States' 'because
they were cheaper. lie was .refer
ring to a period early this year
when for several months eggs
from the United States were al-
lowed' in Ontario. •'
Processc s, Mr. Leith said,
bought them because they were
cheaper. "There was nothing the.
board could do," he said, "it was
the Government's. policy"
The board, he noted, could only
continue storing the eggs because
they weren't bought. In the end
they\went bad because it certain-
ly couldn't cope with the surplus.
In addition to ' complaining
about the levy, producers.don't
like paying it on all -those eggs
that are cracked .and for which
they are paid less.
Like any other•gro`up, produc-
ers are human and have been
trying to get the best of both
worlds: enjoying the prices
authorized by the board and also
selling over -quota eggs privately
and not informing the board,
which they are supposed to.
"It is rumoured," one egg man
said with a wink, "and note
rumoured ( that., even -some grad-
ing station are selling eggs with-
out informing the bid,,,
.e
n
Tic bei sena
this or the Wit ,d i roOld iiot have
introduced a new recording sys-
tem. While the board did not give
dodging of regulations as one of
the reasons and talked about
standardizing the recording sys-
tem nationally, it is true that the
system helps catch the dodgers.
The system simply calls" for
four copies of any shipment
records: one for the producer,
one for the truck drier;. nee
gland one theboar&
' Producers n: e whole
process, :or rather r ended
what was a result. of actions
others: in other words, -
wanted, more on for
eggs because the � of
thing else was g r .
""If we have topes!
less, I Won't it it," lir. N "`... ,
son aid, that % mates his
feed partly frOl 4g''ralns in hilt
farm.
Mr, Ross t hoihad
a contract with a feed'
But that was too �►d. New he,.
planning a .feeder opera-
tion beside bis barn, `�+
Mr. Leith. noted that. t.. "feed.
price has. gone up almost leo per
cent", and the farmer who didn't
want to be quoted, simpir fid.
the price of every exert
gas has.gone lip drastically
since
the Depression.
The board only controls the
price of eggs the produces get
and not what the wholesat and
etailers ask for. Mr. Leith
laimed that.producers won't sit
till and watch retailers aid
wholesalers make all the
Mr. Ross simply said the pry;
of the egg is. too low and will; hove
to ga, up."
Mr. Treleaven, .a'; grafi
stated, "The producer is notget-
ting anything, The Whol
and the retailers►�
are the ;oaes
making all.. the money.".
. He noted, of course, that as'a
grader he is only paid for grading
Mr,
oPggsk Leith f,;� '�tar-'.
estu>g olbaera ...
laid: "lam Only maiwiia reit
more (grading) a dozen than I
was making in 1950." That's 24
years ago! • .
In its attempt to keep. the pro-
ducers and the graders informed
of what it is doing, the board
issues a stream of circulars and .
publishes a newsletter called The
Cackler. Looking at'a pile of the
Please turn to Page 3
WASTE OF EGGS in Canada has caused a national scandal. About 28 million eggs hayil
been destroyed. Ontario alone will have to pay the Canadian Egg Marketing Agency be-
tween 51.2 million and 51.3 million for its share of the surplus eggs.