Ontario Agriculture

The network for agriculture in Ontario, Canada

Here's a story from CFCO radio in Chatham...

Hog producers who had been hoping for a supply managed system, similar to the dairy and egg boards may be disappointed with a study out of Ridgetown. Researcher Ken McEwan says there are probably too many negatives to let the idea work. Partially that’s because Canadian farmers produce a lot more pork than the nation needs. Overall more than 60 per cent of the hogs, or pork products that originate in Canada are exported. In Ontario the figure is closer to 40 per cent but McEwan says it still means about half the industry would have to be shut down. McEwan says it would also shut a lot of processing and packaging companies that fill export demand. A third problem would be potential retaliation. McEwan says trade restrictions could be contrary to the requirements of Nafta and WTO.

http://farmradio.ca/2009/09/supply-managed-pork-likely-a-non-starter/


Do the challenges really outweigh the benefits? It's time to look harder at this rather than give up because it might be tough. ITS TOUGH NOW!!!

Views: 512

Reply to This

Replies to This Discussion

I think it is likely a little too late...time to do it was 40 years ago before the industry was so interconnected through out North America....
ken is assuming you would give up on exports and close the borders. what about setting up a northamerican sm plan. and if us won't join then try a bilateral with mexico. it could also limit pork production for export. you are absolutely right about don't give up. challenge authority. if the status quo ain't working then change it. who doesn't want less work and more money?
If you merge US and CDN markets to create a SM industry it would create an economic crisis on it's own.
"China is both the world's largest producer and consumer of pork products. In 2008, China produced 46.2 million tons of pork, accounting for 45 percent of total output of world pork production.
Despite China's high self-sufficiency rate in pork production, it still imports a considerable amount of pork each year from the US, the EU and Canada, which are the three top pork exporters to China."
Exports from the US to China in the first six months of 2009 was 56,785 tons of pork (down 70% from 2008). In 2008 the US was a NET exporter of almost 2 million tons of pork. In 1994 they were a net importer.
So not only will CDN producers have to cut back - with a North American SM scheme the US producers will also have to cut back substantially. (mind you the bulk of the imports and export numbers are with Mexico and Canada - China and Russia will still suffer to a mild degree).
Tough industry to be in when productivity gains are exceeding consumption gains.

John Beardsley said:
ken is assuming you would give up on exports and close the borders. what about setting up a northamerican sm plan. and if us won't join then try a bilateral with mexico. it could also limit pork production for export. you are absolutely right about don't give up. challenge authority. if the status quo ain't working then change it. who doesn't want less work and more money?
I am glad someone took the time to have a look at this.....the current system is not working for alot of the producers who are being financially destroyed.

I like the idea of having revenue locked in with a cost of production formula.

Sure there are alot of reasons against setting a system like dairy but we need to look for new ways of doing business...the old ways are not sustainable for most Ontario pork producers.
it is never too late to fix something that is broken something that isn't working. all you need is someone with the balls to see it through.

pigsrgr8 said:
I am glad someone took the time to have a look at this.....the current system is not working for alot of the producers who are being financially destroyed.

I like the idea of having revenue locked in with a cost of production formula.

Sure there are alot of reasons against setting a system like dairy but we need to look for new ways of doing business...the old ways are not sustainable for most Ontario pork producers.
Ken's report looked in Supply Management on a Canada-wide basis, which the other systems (Dairy, chicken, etc) eventually ended up being - national. I understand that they did not all start out that way - but were Provincial first. If this is true, Ontario is well-positioned for a Provincial SM system. Any comments???
Does anyone have a link to Ken M's report?
Try this...

http://www.ontariopork.on.ca/User/Docs/Research/reports/09-23-09_su...

pigsrgr8 said:
Does anyone have a link to Ken M's report?
Here is another new report from the George Morris Centre - and their thoughts on SM in beef and pork.

http://www.georgemorris.org/aspx/Public/Utils/DbFileViewerPopup.asp...

pigsrgr8 said:
Does anyone have a link to Ken M's report?
Here is the GM plan summed up after they say Supply Management won't work - their suggestions will work great....lets do this......LOL


At this very difficult point in time, the Canadian beef and pork segments would be better served
by focusing on more tractable alternatives than supply management. For the reasons outlined
above, supply management currently serves as a distraction to more realistic approaches for
addressing challenges in beef and pork marketing. Proposals that involve licensing of producers
or production capacity appear to stop short of a supply management scheme. However, there is
no marketing-related reason to license if there is no intent to regulate production, and the
apparent reason to regulate production is to influence prices1. The same points that bring into
question the efficacy and practicality of implementing a supply management scheme apply, in a
more general sense, to licensing.
The beef and pork segments need to challenge themselves and pursue marketing alternatives that
leverage Canada’s natural advantages as exporters, and set aside apparently simple (but
practically difficult) solutions like supply management. This will require focus, as alternatives
will be more challenging to envision and develop than a mandated supply management scheme.
This will likely involve different relationships between producers and processors; reckoning with
a structurally stronger currency and lagging processing efficiency, and an assimilation of
Canada’s natural resource endowments, product information system, and regulatory inspection
system advantages. As it stands, the supply management debate fragments the beef and pork
segments and detracts from this focus.
1
Shaun Haney forwarded his audio interview with Kevin Grier from the George Morris Centre.

Here is the link so you can listen to the interview.

http://realagriculture.com/2009/11/09/should-canadian-pork-and-beef...

Here is Shaun's Opinion on the issue:

"In my opinion neither the pork or the beef business in Canada will ever become supply managed for many of the same reasons that Kevin discusses in the interview. Never mind that I don’t think you would ever get the domestic stakeholders to buy in, but the bigger obstacle is getting this sort of massive change past the WTO. Canada will be under growing pressure to absolve its dairy and chicken quotas in the future so adding to the list of supply managed industries is slim at best in today’s environment."
So supply management won't work?

What other options are out there...the news is getting worse each day.

This is a north america issue...I saw Big Sky in SK is asking for creditor protection and in the US big players like Coharie Farms and Coastal Plains have filed for bankruptcy....

Reply to Discussion

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Ag shows to increase focus on farm robotics technology

Although agriculture is barely on the eve of widespread adoption of full autonomy in farm machinery, it is slowly becoming mainstream thinking across the equipment industry. As a result, farm machinery shows are starting to tailor their events to better cater to showcasing it, even in concept and prototype machines. DLG (the German Agricultural Society), which organizes Agritechnica, the world’s largest farm machinery show, has added a new feature to its upcoming outdoor Feldtage (field days) event to do exactly that. “FarmRobotix is to become a platform that will supply farmers with relevant information,” said Malene Conlong, DLG’s international press liaison. “The platform will celebrate its premiere as part of the DLG Feldtage field day event.” Robotics have been part of the annual field days event for several years, including a design competition for field robotics. The FarmRobotix focus will emphasize that element of emerging technology. “The Field Robot Event, a contest for

Commentary: Crop market keeps watchful eye on spring weather

In the first half of March, a modest rally in the grain futures lifted prices off what appears to have been the seasonal low, but traders seem reluctant to drive prices significantly higher. A month ago I wrote about the search for a trigger that would spark a short-covering rally. It seems that the big funds that dominate trade finally decided being heavily short — that is, betting that prices would fall — was too risky going into the spring seeding campaign when weather is always The trade bought back their short positions, took the profits and lessened their risk. But this did not create a hot upward rally. Even news March 28 that American corn growers planned to plant fewer corn acres than expected failed to generate an extended rally. So what else is happening in the world that could push the grain market up or down? There are no urgent red flags, but lots of things to monitor. Markets are aware of dryness in some areas of North America, but it is too early for alarms to rin

Farmers get involved in machine design

Anyone who has operated or repaired farm machinery has probably asked themselves, at one time or another, “did some engineer really think this design was a good idea? If only they’d asked farmers …” In today’s highly competitive environment, brands now make a special effort to do exactly that. Farmer panels are usually involved in the process of creating a new machine. Norquay, Sask., farmer Jordan Lindgren can attest to that. He was invited by John Deere to be part of a focus group that provided input on design for the latest 9RX tractors. “I was approached by John Deere down in Waterloo. There were three of us from Canada involved in the focus group, three from the U.S. and one gentleman from Australia.” Over the following few years, as the tractor design evolved, Lindgren participated in several online conferences as well as trips to the U.S. for meetings. “The first time we were down there was 2019. It was right before COVID. Then we did some virtual stuff, because of COVID. W

Trucker training for Alberta farmers

The Alberta government is making changes to the training pathway for Class 1 commercial drivers, and offering a new, farm-restricted Class 1 driver’s license. Transportation and Economic Corridors minister Devin Dreeshen said it is a proactive approach to ensure truck drivers in Alberta have the right training with the right vehicle to perform their jobs professionally and safely. Mandatory Entry Level Training (MELT) became a pre-licensing requirement for Class 1 commercial drivers in Alberta in 2019. Since then, MELT has been identified by the trucking industry as one of the leading factors contributing to the ongoing commercial driver shortage, increasing time and costs for the driver recruitment process. Starting April 1 eligible farmers and their immediate family are exempt from the requirement for pre-license training and will provide them with a farm-restricted Class 1 driver’s license. This new farm-restricted Class 1 driver’s license will allow farmers and their immediate

Milk concentration plant to open spring 2025

A state-of-the-art milk concentration plant is under construction in Blackfalds, Alta. Dairy Innovation West (DIW) is the first of its kind in Canada. The $75 million facility is owned by the Western Milk Pool that is supporting processing expansion in Western Canada and to reduce transportation costs for Western Milk Pool producers. The facility will have the capacity to accommodate up to 300 million litres of milk from western dairy farmers per year. Once operational, there will be a reduction of the western Canadian dairy industry’s environmental footprint through the concentration of liquid raw milk. For every three or four trucks of raw milk coming in from local farms, one truck of concentrate will leave for a processing plant. DIW has the capability to produce reverse osmosis milk ingredients, whole and skim, as well as ultra-filtered skim milk and cream. DIW Chair Henry Holtmann said it is a significant leap forward for the dairy industry. “This project is not only setting

© 2024   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service