Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFFO Commentary: Profitability in the Ontario Food Chain Extends to Input Suppliers

By John Clement
June 17, 2011
 
The Christian Farmers Federation of Ontario has said repeatedly that a sustainable Ontario agriculture needs to be profitable for all those in the food chain. Typically, most people view the food chain as only extending upwards from farmers to processors and retailers. But the reality is that it extends much further than that conception to include both consumers and farm input suppliers.
 
That reality was spelled out in a recent letter I received from an Ontario farm equipment dealer. Much like farmers themselves, dealers are faced with more competition from international trade, increasingly fickle buyers, fluctuating currency rates and shrinking margins. Here’s an excerpt from the letter I received:
 
“We find that business is becoming more global; we have had to travel farther and farther to get business, which increases our cost of operation. At the same time, we find that 25 years ago we sold 75 per cent of the quotes we made, today the pattern is reversed: we are selling 25 per cent of quotes we make. In many cases we can spend days compiling a quote; as you can imagine, our cost per quote sold is proportionately higher.
 
As an example, we spent several hours last week quoting a $20,000 machine to a customer. We had the deal closed on our belief and that evening the customer located a similar machine on the internet at a clearance price in Pennsylvania and cancelled his deal with us.
 
Our margin on this sale would have been approximately $1,600 out of which we pay a salesman a wage plus a sales commission over and above, supporting management staff, vehicle expenses and advertising. There is a groundswell of support being raised to shop local, maintain jobs in Canada and support Canadian agriculture. Yet we as local dealers who try to support local activities are often undercut by firms that are not local and do not support local endeavors.”
 
The letter from this farm dealer underlines the importance of profitability for all of those in the Ontario food chain. And while we tend to think of the food chain as only extending upwards to consumers from farmers, we need to keep in mind that it also extends below farmers to suppliers. Accordingly, we at least need to factor in the impact our purchase decisions have on others in rural Ontario, while trying to maximize the profit margins of our own businesses. We all need to make smart purchases and expect excellent products and service, but where we buy merits consideration in maintaining a sustainable Ontario agriculture.
 
John Clementis the General Manager of the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. The CFFO Commentary is heard weekly on CFCO Chatham, CKNX Wingham, and UCB Canada radio stations in Chatham, Belleville, Bancroft, Brockville and Kingston. It is also archived on the CFFO website: www.christianfarmers.org. CFFO is supported by 4,200 family farmers across Ontario.

Views: 56

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

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

SaskOilseeds October Newsletter

Closing out the 2026 growing season With harvest nearing completion across Saskatchewan, canola and flax acres are among those still coming off the field. As of October 19, canola harvest was 96 per cent complete provincially, while flax was 88 per cent complete. Provincial yield estimates currently sit at 40 bu./ac. for canola and 26 bu./ac. for flax. Rain and snow slowed harvest and fall field work in many areas earlier this month, but the added moisture was beneficial for harvested acres heading into winter. Post-Harvest Storage & Agronomy Protect Your Harvest: Oilseed Storage A lot of work goes into getting a crop from the field to the bin, and every season looks a little different. These resources can help maintain quality in storage: Conditioning Tips for Stored Canola Factors that Increase Canola Storage Risk Tips for Drying Damp and Tough Canola Flax Harvest Preparing for Next Season Canola Disease Testing: Submit canola stem samples by October 30. Blackleg and verticilliu

Canadian Centre for Rural and Agricultural Health celebrates milestone 40th anniversary

The Canadian Centre for Rural and Agricultural Health (CCRAH) began more than four decades ago for a simple reason: to support the health and safety of rural and agricultural people in Saskatchewan. “Saskatchewan is the breadbasket of Canada. Agriculture and rural are what make Saskatchewan,” said Dr. Shelley Kirychuk (PhD), the current director of CCRAH. “We are rural, we represent agriculture, and we support the people that bring food to the world.” Where it started In the 1970s and ’80s, a phenomenon was noticed by Dr. James Dosman (MD), the eventual founding director of CCRAH. People who worked in grain elevators were reporting lung health issues due to grain dust exposure. These findings led to an International Symposium on Grain Dust and Health in the late ’70s, which eventually led to the development of a national grain dust medical surveillance program for Canada. From there, USask and the Saskatchewan Lung Association established the Centre for Agricultural Medicine in Ja

USask soil science class partners with Wanuskewin on restoration project

That was Jessica Gunn’s mantra when she put on waders and climbed chest-deep into the cool water of the opimihaw Creek at Wanuskewin Heritage Park in mid-September. Gunn was there with a group of University of Saskatchewan (USask) students who were engaging in a unique learning experience: constructing a beaver dam analog (BDA) in the creek. “A big part of why I wanted to do this course is because it’s so hands-on,” said Gunn, a third-year renewable resource management student who enrolled in SLSC 450.3: Practical and Applied Restoration, a soil science course taught by Dr. Katherine Stewart (PhD), an associate professor in USask’s College of Agriculture and Bioresources. For Gunn, the day at Wanuskewin was unlike any other school day she had experienced. “We had a great time as a class,” she said. “I feel like we learned so much.” The students were invited to Wanuskewin to help the park build a BDA — essentially a “starter” dam that beavers can take over and use to construct their

U.S. Canola Use Forecast to Jump 16% in 2026-27

U.S. canola use is forecast to climb sharply in the 2026-27 marketing year, supported by record domestic production, expanding crush capacity and rising demand for canola oil in biofuel manufacturing. According to the USDA's latest Oil Crops Outlook, total U.S. canola usage is projected to increase 16% from 2025-26, while domestic crushing is expected to rise 11% to 2.4 million tonnes. The stronger crush outlook reflects growing domestic demand for canola oil and meal, which has supported processing margins. A new crushing facility is also expected to be completed during 2026-27, adding to U.S. processing capacity. Meanwhile, U.S. canola oil use in biofuel production is forecast to surge to 2.54 million tonnes, up from 1.68 million tonnes last year, an increase of more than 50%. The USDA attributed the growth partly to stronger renewable fuel mandates for 2026 and 2027, along with new eligibility for the 45Z clean fuel production tax credit for biomass-based diesel made from No

Protect Grain Quality During Wet Harvests

Wet harvest conditions can increase the risk of OTA development in stored grains. Proper drying, cooling, cleaning, and monitoring help protect crop quality and value.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service