Zurich Citizens News, 1974-10-17, Page 6Cf
PAGE 6 ZURICH CITIZENS NEWS
Jottings
by
Jack
from
Queens Park
For the first tirne in recent
Canadian history, the subject
of agricultural economics is
commanding widespread atten-
tion from the press, consumers
and legislators. Higher food
costs are forcing the public
to give much more thought to
their basic source of food.
Canadian farmers are in the
midst of a period of unpreced-
ented high levels of farm cash
receipts due, in large part,
to world food shortages, relat-
ed high food demands, and an
uncontrolled rate of inflation.
Costs of production, however,
have also risen rapidly with the
result that higher gross returns
are being consumed more rap-
idly than increased production
or higher prices can counter
balance. Thus, for individual
commodity producers, the
situation may vary considerably
It is now becoming increas-
ingly clear to consumers,
producers and politicians that
farmers must receive adequate
and stable incomes in order
that a steady supply of reason-
ably priced, high quality food
can be insured. Nowhere else
is this need more apparent than
Ontario's pork producers. Hogs
are on the poorest end of the
farming business today.
The average market price of
hogs in Toronto last week was
$55.39 per hundredweight or
roughly $90 per average hog.
While this is an increase from
the $40 per hundred weight
mark of last May; tremendous
feed price hikes and sagging
pork demands (consumption of
pork in Canada is down a/o
from last year) have taken away
any substantial gains to the
farmer.
The Pork Producers Marketing
Board, in co-operation with the
University of Guelph has devel-
oped a formula for arriving at a
cost -of -production figure for
pork producers. This formula
indicates that even with modest
input prices, the farmer is los-
ing money in hog production.
Applying the formula to the
second quarter of 1974, and
using the average feed costs of
the first quarter, the production
cost was $9'7.61 per hog for a
164 ib average hog. The best
price that hog producers have
received this month has been
$56 per hundred weight or a
loss of around $7.00 per hog.
With the $40 price of last May,
the farmer was losing about $19
per hog.
At the same time, feed grain
prices in Canada are at an all
tirne high. A farmer survey
by the Pork Marketing Board
indicates that on June 15 of this
year, a farmer was receiving
$2.82 per bushel for his corn.
On August 15, the figure had
jumped, to $3.60 per bushel.
Last year, the price per bushel
A Bird -Dog Aircraft is one
used to carry personnel who
direct air -attack operations on
Forest fires.
of corn was $2.29 on Septembei
15. Other feed costs have also
increased. Soybeans from
$6.14 per bushel in September
1973 to $7,12 in September
1974, and Barley from $1.76
per bushel in September, 1973,
to $2.60 in September, 1974.
These figures would seem to
have two fold results. On the
one hand, many fanners are
decideing that their feed grains
are too expensive to feed
through their livestock for losses
later on. On the other hand,
a farmer who must buy a large
share of prepared feeds is losing
increasingly more money in
hog productinn. The situation
now seems to indicate that if
hog prices do not rise to meet
at least the cost of production,
pork producers will get out of
the business.
In fact, there are already
indications that pork producers
are cutting back on their breed -1
ing stock. Figures from the Port'
Producers Marketing Board ind-
icate that in the first quarter of
1974 there were 21, 331 sows
marketed. Since the end of
June, the figure was 24, 016
sows marketed or 3.77 per cent
of all hogs. In 1973, only 3
per cent of hogs marketed for
the whole year were sows.
The conclusion is that breed-
ing sows are moving to market
in abnormal numbers. In fact,
for the last seven weeks, 4 per
cent of the hogs marketed have
been sows or 2, 000 per week.
It is against this instability in
the farming sector, that most
provinces have made moves to
encourage hog producers to
stay in productibn during this
crucial period. In fact, it is
only in Ontario, Manitoba and
Newfoundland that no subsidies
are provided. In Manitoba,
their Provincial government
subsidy has just expired. In the
short term, some type of Prov-
incial Government subsidy is
required to encourage hog
producers to stay in business
during this slow period. In the
long term however, a market-
ing program that matches hog
production to consumer demand
for pork and elimination of
wild price fluctuations will be
needed.
Since the pork producers can
expect no real help from the
Provincial Government, the
Pork Marketing Board is taking
steps towards establishing trade
with the Japanese market. On
September 30, the price pool-
ing on a weekly basis was start-
ed. In this way, the majority
of fluctuations in hog prices for
the week are removed. Before
price pooling, the price a farm-
er received for his hogs might
vary from one price in the morn,
ing to another in the evening.
THURSDAY, OCTOBER 17, 19'74
The Pork Board has started
price pooling to facilitate the
marketing structure for future
slaes with Japan. It now has
plans to offer hogs to contract-
ing packers at a negotiated
price based on their cost of
production formula. This cost
of production price would be
re-examined every three
months to reflect any changes
in hog production during this
period. Through these methods,
the Ontario Pork Producers Mar-
keting Board hopes to bring
some stability to hog marketing
in Ontario in the future.
The Ausable.Bayfield
Conservation Authority
elcomes everyone to a guided
NATURE HIKE
in the
Bannockburn Wildlife Area
SUNDAY, OCTOBER 20
. from 2 to 4 P.M.
Hot drinks will be served. Bring the family
See article and map in this issue
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