Loading...
The Huron Expositor, 1984-09-05, Page 8J Livestock and meat markets adjusting to strike With a sizeable portion of the Canadian meat packing industry out on strike apparent the balance of the indus" of inherent ability to adjust. In addition, the merits of the Canadian industry operating within the competitive environment of the North American livestock and meat economy are brought into perspective. The labour dispute is focussed on the wage discrepancy between the U.S. and Canadian industry. In the past two years major U.S. f'irrms, through wage cutbacks and corporate restructuring, have achieved a reduction of up to 50% in wages. On the other hand, Canadian packinghouse wage rates have increased by about 25% in the same period. Many U.S. slaughterers currently have a wage rate of U.S, 56.50 to 8.00 per hour compared to a Canadian base rate of $12.00 per hr. ' The current efforts directed at labour realignment must be allowed to move unimpeded to resolution if Canada is to remain competitive in export markets. In as a 1983 bean As of August 22, the 1983 white bean crop has been completely sold. The final payment of approximately 5110 per tonne (55 per bag) will be determined upon completion of the audit in mid -Sept. with the cheques being sent at the end of Sept. - Normal demand being roughly 7.2 million bags, the return to producers of 1984 crop should be about $28 per bag. Being the type of season it has, any predictions of the final production . are suspect. Ontario and Michigan both have r. 1983, over 20% of the pork production was exported and trade data supports the point that around 8% of Canada's beef output was Zvrported,. Canada'snet meat trade balance in 1983 was in excess of 5400 million, a significant contribution to the health of the nation's livestock producers and feeders. Overcapacity has plagued the industry for years. While rationalization has been taking place the fact remains that plants continue to be under-utilized. Thus in a strike situation plants can step up slaughter and processing volumes with extended working' hours, second shifts and Saturday operations coming into play. Increased line speeds can also play a role in maximizing plant volumes. Within the North American marketplace Canadian and U.S. livestock and meat move quite freely north or south depending on prevailing price levels and other factors such as , relative value of the doll r, tariffs, transportation costs, etc. Canadia livestock prices basically follow U.S. trend . Canadian meat and livestock prices will o ly/fall to a crop is sold level that attract U.S. buyers and prices will Hog producers and politicians in the U.S. only rise to a level that results in movement are watching the Canadian hog and pork of meat or livestock into Canada. According- trade with their country very closely. They ly, Canadian prices move up and down are disturbed that increased shipments of within a fairly narrow range. Thus sharply Canadian product is depressing their rising prices are unlikely during the strike. markets. Another means of clearing local markets of Relative to Canadian/U.S. trade the livestock available for slaughter is through •following points can be made: interprovincial movement. Already there is a a) According to U.S. data during 1983 the movement of live cattle from Western U.S. sold 51.8 billion in farm products to Canada, particularly Manitoba, into Ontario Canadian purchasers and bought 51.5 billion for slaughter - a region where slaughter worth of agricultural goods from Canadian capacity is not as affected by the strike as on producers. the Prairies. b) Canadian shipments of hogs and pork to So with plants increasing capacity, with the U.S. represent a small proportion of flow of product north and south and with American output. For the period January - some changed flow of livestock from region July '84 Canadian hog shipments to the U.S. to region, available. livestock supplies will •represdnted 1.4% of U.S. production and ford a market outlet and meat prices should Canadian pork sales to the U.S. amounted to remain basically unaffected. 2.2% of their output. replanted beans, Michigan to a higher degree than Ontario. These beans in Ontario are generally smaller than the earlier planted, ones due to adverse growing weather. The dry weather of late has enhanced the ripening and beans are expected as early as the first of Sept. The current prices in Michigan are $24/bag U.S. on the outside and $20/bag U.S. to the producer. Initial payments to Ontario producers will be 5263.75 per tonne ($11,96/bag) less Iicen a fees of 55.70 per tonne for a net of 8.05 ($11.71/bag). 1.4 Fall harvesting of alfalfa Farmers who fall harvest alfalfa through cutting or allowing cattle to graze may be sacrificing next year's hay yields. It is important to give alfalfa stands a six week rest period to build up root food reserves. But what about the possibility of harvesting hay after the six week rest period and there has been a killing frost? Alfalfa will be winter killed if the temperature in the root and crown area of the plant drop to -10° C. Thus one way plants winterkill is if the food reserves which act as antifreeze in the root are depleted. The other way plants will winterkill is if there is if there is not enough snow cover to keep crown and root temperatures above •10°C. A blanket of snow will keep the soil 5-10°C warmer during periods of cold weather. To hold this snow. a stubble of 12 inches is recommended, Work at Guelph comparing stubble height showed that stubbies of less than 12 inches resulted in lower first crop and total seasonal yields the next year. Harvesting of alfalfa in the fall generally causes moderate to severe damage over winter. The snow cover will insulate the crown. The stems will maintain holes through any possible ice sheets allowing the crown and roots to breathe. At Guelph they have never known alfalfa to winterkill from tile() much top growth. If farmers do not need the forage. it is better left alone. If they do need the forage. it night be preferred to cut fields with the lowest percentage of alfalfa, A light browsing of the field by cattle or sheep would be preferred to cutting. Plowing & Minimum Tillage Demonstration We Invite you to come and compare the equipment (plowing•soil saving -ridge tilling -planting) Tuesday, Sept. 18 Special Show Times • 10 a.m. - 2 p.m. • Continuous show 9 a.m. to 5 p.m. • Glen Perrot (M.C. for day from ORFEDA) • Register for special door prizes at each display • Lunch available 4 miles west and lie mile north of Seaton') This Demonstration Sponsored By �Ut AII,t HYDE BROTHERS HIE H. LORR & SONS LTD. Clinton di STEIGER VINCENT FARM EQUIPMENT Se' forth HURON TRACTOR LTD. Exeter McGAVIN FARM EQUIPMENT Walton Hensall v c) Canada and the U.S. have shared a long history of relatively free trade in pork products. International trade interests of the two countries are often mutual, yet at times there are concerns and problems. Just as increased imports of live hogs and pork annoy some U.S. producers, there have been times when heavy movement of pork into Canada (mid 70's) disturbed Canadian producers. d) Again, according to U.S, authorities one of the major factors contributing to the increase in imports of Canadian hogs and pork is the current strength of the U.S, dollar. At times, in the past decade the U.S. dollar was worth less than the Canadian dollar but it is now valued about 30% more than the Canadian dollar. This is attracting more hogs and product to U.S. markets. e) While allegations have been made that Canadian hogs are subsidized it should be noted the recent federal government stabili- sation payment did not apply to the proportion of hog and pork output moved roto export markets. The U.S. International Trade Commission is currently involved in a fact -fording investigation of the competitive and econ- omic factors affecting the U.S. and Canadian hog and pork industries. The study team will be in Canada in mid-August. The bottom line of the current concern in the U.S. is likely related to the fact this is election year. U.S. producers and aspiring politicians know it is a good time to pressure the administration for quick action, as bad as that could turn out long-term. By getting all the facts and arguments on the table through the current ITC, investigation, by putting the situation in perspective, then hopefully rational decision making will result. COMING EVENTS Staffen's Anytiversary September 18-22 Frozen Food Sale date to be announced in early Oct. BACK -TO -SCHOOL a, THANKS FOR THE HELP THIS MMERJ From left to right: Danielle Gerrard, Debbie Lindsay, Mark Ortelll 3 Shane Williamson. All four ora off to university. 6.. CHOCOLATE CHIP and CHOCOLATE FUDGE COOKIES also Premier & Classic McCAIN WEEK AT Stuffenf FRENCH FRIES McCAIN 'SAVE 66" I 6 9 1.5 Kg. REG. 2.25 McCAIN 'FANCY' SAVE 80' PEAS 169 1 Kg. REG. 2.49 McCAIN FANCY McCAIN 5" PIZZA SAVE 40.` PEPPERONI a REG 4.5' DELUXE 'SUPREME REG 3 19 REG 3 29 219 239 249 BRUSSELS SPROUTS PRODUCE PRODUCE PRODUCE PRODUCE PRODUCE 0 0.. 1 '5 R ft 0 m X O C A 1 a A 111 1 e CANADA No. 1 POTATOES :--- iOL8S , FROM THE TROPICS CHIQUITA No 1, BANANAS 29 a CANADA No. 1 ROMAINE LETTUCE 2400 CANADA No. 1 5 L8 BAG COOKING ONIONS 89 CANADA No. 1 GREEN ONIONS 4i99 CHICKEN NOODLE CREAM OF CHICKEN CREAM OF CELERY 8 CHICKEN RICE 10 OZ AYLMER SOUPS AYLMER CREAM OF MUSHROOM SOUP DEL MONTE TETRA PAK PURE JUICES Apple Orange Grapefruit Pineapple 1g) 21(v79 2°89 99 PKG of 3 DEMPSTER 100% BUNSM•ASTER CHEESE BREAD r;REG�_1.39 WESTON WESTON RASPBERRY & 1191 FAMILY LEMON Pkg of 6 CHOCOLATE BUT'lERHORNS ROLL 238 Gm F000 St, Marys - Mitchell - Mount Forest 6pavga464001 KERINS PLEASE NOTE= .Tessa doss E r o® H. Mn. n°pon t.+..t ft... ovr SEE. LIMITED SUNDAYS 10-b WE RESERVE THE RIGHT TO LIMIT QUANTITIES STORE HOURS MONDAY to FRIDAY 90 m to 9p m SATURDAY 9 o.m to 6 p m SUNDAY 10 o m, to 6 p m price effective fill closing MONDAY AT 9 P M SEPTEMBER SWINE DAYS MONDAY to FRIDAY - September 10 -. 14 For every 1 tonne order of either HI -INDEX or GESTA-LACT Premix ,. picked up or delivered, during this tme period you will receive a Quality SHUR-GAIN Jacket —Drop IN FOR OTHER SWINE DAY SPECIALS— Varna offiRGaj Walton Feed Mill Ltd. Feed Mill 482-9219 887-6023 Plowing & Minimum Tillage Demonstration We Invite you to come and compare the equipment (plowing•soil saving -ridge tilling -planting) Tuesday, Sept. 18 Special Show Times • 10 a.m. - 2 p.m. • Continuous show 9 a.m. to 5 p.m. • Glen Perrot (M.C. for day from ORFEDA) • Register for special door prizes at each display • Lunch available 4 miles west and lie mile north of Seaton') This Demonstration Sponsored By �Ut AII,t HYDE BROTHERS HIE H. LORR & SONS LTD. Clinton di STEIGER VINCENT FARM EQUIPMENT Se' forth HURON TRACTOR LTD. Exeter McGAVIN FARM EQUIPMENT Walton Hensall v c) Canada and the U.S. have shared a long history of relatively free trade in pork products. International trade interests of the two countries are often mutual, yet at times there are concerns and problems. Just as increased imports of live hogs and pork annoy some U.S. producers, there have been times when heavy movement of pork into Canada (mid 70's) disturbed Canadian producers. d) Again, according to U.S, authorities one of the major factors contributing to the increase in imports of Canadian hogs and pork is the current strength of the U.S, dollar. At times, in the past decade the U.S. dollar was worth less than the Canadian dollar but it is now valued about 30% more than the Canadian dollar. This is attracting more hogs and product to U.S. markets. e) While allegations have been made that Canadian hogs are subsidized it should be noted the recent federal government stabili- sation payment did not apply to the proportion of hog and pork output moved roto export markets. The U.S. International Trade Commission is currently involved in a fact -fording investigation of the competitive and econ- omic factors affecting the U.S. and Canadian hog and pork industries. The study team will be in Canada in mid-August. The bottom line of the current concern in the U.S. is likely related to the fact this is election year. U.S. producers and aspiring politicians know it is a good time to pressure the administration for quick action, as bad as that could turn out long-term. By getting all the facts and arguments on the table through the current ITC, investigation, by putting the situation in perspective, then hopefully rational decision making will result. COMING EVENTS Staffen's Anytiversary September 18-22 Frozen Food Sale date to be announced in early Oct. BACK -TO -SCHOOL a, THANKS FOR THE HELP THIS MMERJ From left to right: Danielle Gerrard, Debbie Lindsay, Mark Ortelll 3 Shane Williamson. All four ora off to university. 6.. CHOCOLATE CHIP and CHOCOLATE FUDGE COOKIES also Premier & Classic McCAIN WEEK AT Stuffenf FRENCH FRIES McCAIN 'SAVE 66" I 6 9 1.5 Kg. REG. 2.25 McCAIN 'FANCY' SAVE 80' PEAS 169 1 Kg. REG. 2.49 McCAIN FANCY McCAIN 5" PIZZA SAVE 40.` PEPPERONI a REG 4.5' DELUXE 'SUPREME REG 3 19 REG 3 29 219 239 249 BRUSSELS SPROUTS PRODUCE PRODUCE PRODUCE PRODUCE PRODUCE 0 0.. 1 '5 R ft 0 m X O C A 1 a A 111 1 e CANADA No. 1 POTATOES :--- iOL8S , FROM THE TROPICS CHIQUITA No 1, BANANAS 29 a CANADA No. 1 ROMAINE LETTUCE 2400 CANADA No. 1 5 L8 BAG COOKING ONIONS 89 CANADA No. 1 GREEN ONIONS 4i99 CHICKEN NOODLE CREAM OF CHICKEN CREAM OF CELERY 8 CHICKEN RICE 10 OZ AYLMER SOUPS AYLMER CREAM OF MUSHROOM SOUP DEL MONTE TETRA PAK PURE JUICES Apple Orange Grapefruit Pineapple 1g) 21(v79 2°89 99 PKG of 3 DEMPSTER 100% BUNSM•ASTER CHEESE BREAD r;REG�_1.39 WESTON WESTON RASPBERRY & 1191 FAMILY LEMON Pkg of 6 CHOCOLATE BUT'lERHORNS ROLL 238 Gm F000 St, Marys - Mitchell - Mount Forest 6pavga464001 KERINS PLEASE NOTE= .Tessa doss E r o® H. Mn. n°pon t.+..t ft... ovr SEE. LIMITED SUNDAYS 10-b WE RESERVE THE RIGHT TO LIMIT QUANTITIES STORE HOURS MONDAY to FRIDAY 90 m to 9p m SATURDAY 9 o.m to 6 p m SUNDAY 10 o m, to 6 p m price effective fill closing MONDAY AT 9 P M