Farm & Country, Pork Industry Crisis


Pork Crisis Forum

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June 14, 1999
Simple Solution
If everybody reduces their weights by 8-10 kilos we could in a matter of three weeks reduce the amount of pork on the market by 8%. The Americans are discussing this very issue and with a little bit of luck they'll do it. The packers may lead you to believe that the cuts from a 235 pound pig is less marketable then a 255 pound pig. The truth of the matter is that it simply reduces their profits and increases ours. They can run the same amount of 260 pounders through their lines as 230. It's their way of reducing their costs at our expense. Is our Pork Board bold enough to try something as simple and effective as this? Perth County.


May 11, 1999
Attention all farmers raising pigs on contract
Read the article on the U.S. chicken industry by Alan Guebert in Farm and Country. Then think about what you are doing, raising hogs for the big guys. Looks good now, but your putting the nails in your own coffin.


April 4, 1999
Ontario Pork annual meeting
I'm surprised that no one has posted hear denouncing the annual meeting yet. In my opinion, the first resolution on day 2 was nothing but a sneaky underhanded manipulative move by a few councilors who were mindful of only their own pocketbook in the very short term. Do these people not realize that eventually they will be the lowest on the totem pole and it will be too late for them to get back what they are fighting against now? I think some people need a reminder that they are supposed to be representing the producers at home, not voting in their own best interest, but in the best interest of all producers as a WHOLE. Producers wanted an end to direct producer packer contracts, proof is in the Perth county survey. 88% of producers surveyed wanted an end to direct contracts. Any comments? Can any councilors defend their decision to vote against the wishes of producers?
Huron


March 13, 1999
What gives?
Maple Leaf is offering $131.73 for forward pricing on December hogs for their customers while Quality is offering $154 .21 for December. ALL producers should be made aware of this.


March 3, 1999
Power
Question: There are six thousand producers seeking contracts with two packers. Who has the power?
Answer: The two packers.
Question: There are six thousand producers and they allow their Board to be the SOLE negotiater for all contracts with the two packers. Who has the power?
Answer: The Board. It's not difficult to figure out. The problem we as producers have is we expect the Board to preform miracles with their hands tied behind their backs.
Question: What do you get when the big packer beats up the little packer?
Answer: A monoply. It's self serving and gives you bullying priveledges. Were only one packer away from such a situation.
All producers want is a fair price for a defined quality without all their options taken away from them. I urge producers to stick together and work through the board for all hogs to be processed in Ontario. Once the Board and the Packers can agree to work together then the industry as a whole will prosper and move ahead. Just an opinion.


February 27, 1999
Integration
Smithfield just purchased Carrol's. This now makes Smithfield the largest processor/ producer in the world with over 335,000 sows. Over 27% of the pigs they process are now owned by the company. Financing for these purchases are possible by raping independent producers. There's talk of a couple more large plants that are in the process of being bought out and then closed.    Concerned.


February 14, 1999
Strong Leadership
I agree totally. The board needs complete power to market all hogs. The Perth county survey says 88% of farmers support a full monopoly for the board. With that kind of a majority, how can anyone deny it? If Quebec had a 51% majority they would have separated by now. Nothing should stop Ontario pig farmers from reclaiming marketing power.


February 13, 1999
Have you heard?
Jarolimek, Vice-President of the National Pork Producers Council states that independent family producers are most in danger of losing their livelihoods right now. He went on to say "we fear these operations could become the seed stock for a massive vertical reorganization of the hog industry."


February 13, 1999
Strong Leadership
The hog industry in Ontario needs strong leadership by our provincial directors. A major Packer at present is trying to show producers that they are better off contracting one on one with the Packer then they are by allowing the Board to sell them. This is why the pool pigs are at less then 100% of the formula. It sends a clear message that the Board is not a good negotiator. At the annual meeting in Toronto I feel we need to give unanimous support to the Board being the sole negotiator of ALL producers hogs. It is the ONLY way for the Board to have negotiating power. All existing contracts could cease upon expiry dates as agreed on in their contracts and then go back into the hands of the Board. Maple Leaf as I see it is determined to make sure that the Board NEVER gets the sole selling rights to all the hogs.They don't want the producers to have that kind of power.Some of the Packers are trying to get as many signed up on contracts before the annual meeting in March. Perth


February 8, 1999
Packers created shortage
Just heard that prior to the hog crisis Excel was negotiating to purchase the 15,000 head per day plant in Detroit and run it as a slaughtering plant. IBP saw the increased hog numbers coming, then came in and made a great offer to close the slaughtering part and use the rest to process IBP pork. The rest is history. We need more competition.
Concerned


February 7, 1999
vertical integration
There are numerous efforts that could be taken to ensure a future for independent farmers and stop integration.1) Support the efforts for the OPPMB to regain the sole negotiating rights for contracting all the hogs. This eliminates the divide and conquer efforts by the packers and gives the power back to the producers. 2) Don't support the vertical integrators feed company. 3) Inform your local MP and MPP's of the economic drain caused by integration. U.S. economists research shows it reduces income, small business, quality of life, community spirit, revenue from taxes, jobs, and is also a greater environment risk.There are numerous research documents to back their work. 4) Legislate that packers can't directly or indirectly own hogs. The states of Iowa,Nebraska, Minnesota, S.Dakota, and Kansas are all in the process of doing it. 5) Encourage small packers to expand by ensuring them hogs through long term contracts. If you snooze you loose.


February 5, 1999
Maple Leaf Rip Off
Has anyone else who quit using Shur Gain feed or joined the Pool Plus program after declining to sign a signature contract noticed that their index has dropped only on pigs sent to Maple Leaf? It's pretty amazing how our pigs can travel all the way to Quebec and still index 2 or 3 points better than pigs of the same group slaughtered at Maple Leaf!! Also was wondering what is this "newly created Maple Leaf Pork" that was mentioned in Farm & Country magazine? Is it created to buy up all of the loops that McCain is bankrupting?


January 24, 1999
vertical integration
I would like to hear some comments on vertical integration in the hog business in Ontario. Everyone seems to be afraid Mr. McCain will put an end to the independant family hog farm. And rightly so. In my opinion we have to put the blame on some farmers helping McCain succeed. The farmers themselves, by building the contract barns, are allowing McCain to integrate our industry. Before I invest $300 000, $600 000 or $1 million in a barn I would buy a $10 lunch pail. 25 - 30 sows farrow to finish will make you more than a 1000 head contract finishing barn. (Before the crash)


January 16, 1999
Letter regarding Quality Meats
At least Schwartz is paying his guys to stay. McCain paid his to leave. Duh.


January 15, 1999
Quality Meat
I hope everyone recognizes the latest Quality Meats press release (January 14, 1999) for what it is. Posturing, bargaining, bullshitting, spin doctoring. Compare the buyout Schwartz is offering with the one Maple Leaf gave its workers. Quite a few thousand missing eh? Get real David. Stop holding the industry hostage and making us vulnerable to the Americans. Your nickle and dime tactics are costing us dearly.
TS--Toronto


January 14, 1999
supply management
If you like supply management why don't you buy a quota farm. Could it be that the cost of quota is to much money . People suggesting supply management in the pork industry are the selfish and greedy. They want supply management to give themselves lot of paper value in their production rights.These people have little regard to new entrants into the hog industry.


January 14, 1999
FORUM USAGE
IS SOMEONE ON HOLLIDAYS HERE OR IS THE PORK CRISIS OVER ! There is more Canadian activity on the NPPC website than here.
MFI


January 6, 1999
SUPPLY MANAGEMENT
Supply management is not the answer to our production and price problems. If you really think this is the solution why don't you purchase a dairy egg or broiler farm.Could it be that the QUOTA COSTS TO MUCH. It's a tough world out there .All promotants of supply management in the hog industry are the selfish and greedy. You just want to cash in your Quota when you retire because ultimidaly SUPPLY AND DEMAND is the final law of economics . With supply management you just create a cash cow for the generation that is in the industry today and no one else. Along with supply management One third to one half of our hog industry will disappear as now we only will supply the domestic market .Who will play God and determine who stays .Also a lot of jobs in our industry disappears. We have had record pork prices for one year and that sends a signal produce more pork What we have in the last three months are growing pains.Things will work out.


January 2, 1998
Re: Maple Leaf
It seems to me that the OPPMB, and perhaps with OMAFRA, have two options before them with regard to the current issues of low prices and the companion marketing dilemma.
Option #1 would be to take a realistic note of the emerging sign posts that indicate that a major shift is underway. That shift, in a nutshell, is the movement of pork production from family owned, independent production units where the risks and benefits accrue to the family or families operating such units... and to production units where the risks and benefits accrue to corporate and /or integrated units. Having taken due notice of that emerging reality, the powers that be would act as facilitators in the transition... seeking primarily to minimise the negative implications for family farmers.
Option 2 would be for the powers that be to recognise:
· the magnitude of the damage that would be incurred by family farmers,
· the long term implications of pork production being controlled and centralised in the hands of a few (or even 1) integrated operations.
· That family owned operations will be rendered inoperational by the decisions of corporate power brokers.
· And that to preserve a viable family driven pork production sector will take strong and decisive leadership
Under this option, the OPPMB and OMAFRA, must have a clear vision of what kind of production sector we will need that will secure the best interests of both family farmers and the consumer... but also recognising the legitimate desire of packers to be able to run their facilities at a certain percentage of capacity (80%???) on a consistent basis.
Further, under this option, the OPPMB and OMAFRA must have a clear picture of the kind of system that is being developed in the USA. Some unofficial reports indicate that up to 80% of production is already in the hands of vertical integrators. If we expect to develop a production sector significantly different than that, visionary and determined leadership will be required... and a battle with Mr. M. can be expected!!!
Do we have the resolve, conviction, expertise, and perhaps the dollars to be able to engage in such a battle with any hope of winning?
Kent County


January 1, 1998
Re: Response to Maple Leaf
Recent article in a farm newspaper quotes Maple Leaf's Pat Jones as stating "there has been a noticeable deterioration in the quality of Ontario hogs, especially in terms of consistency of weights. That is completely the fault of your own loop pigs. You empty your thousand head barns with weights ranging from 220 to 290 pounds. When you were on stike pigs from your Future Pork Loop went to an American Packer. Comments from that American Packer inregards to your quality should be published. If you want to knock the quality of Ontario hogs then publish your last ten weeks of shipments from Future Pork. DON'T blame the producers for the deterioration because of your production mistakes. You comment on Signature price being better then the Pork Board's Pool price. If you're attempting to divide and conquer it's easy to pay less for pigs from the board in order to convince the producer that they are better off without the board.You defend Maple Leaf's posistion on building more barns as a result of not enough production in Ontario. That is another crock. There are over 20,000 weaners and hogs leaving Ontario because you are to cheap to pay for them. There is not even enough capacity to slaughter what's here and you defend building new barns for your integration! Ontario slaughter capacity is about 40,000 per week short of what is being presently produced. How gullible do you think we are? There was not one ounce of credibility to your statements. There is absolutely no future for independent family farms with Maple Leaf's master plan. It's all about control and power. Wake up producers!


Decmeber 30, 1998
Re: Maple Leaf
OK Michael where is the second shift at Burlington you promised us. If you were really serious you would have gone into overdrive when Thorn Apple closed. As far as I can see you haven't kept the promise you made and don't intend to either.
I wonder how much extra profit Maple Leaf shareholders could have made if the second shift had been operating as promised. I figure about $1.5 million on killing and maybe the same on further processing.
I wonder if anyone at the teachers' union which owns all those Maple Leaf shares has done the math? If they aren't concerened maybe Harris is really right about the teachers getting paid too much dough.


Decmeber 29, 1998
Re: USDA Hogs & Pigs report
Teriffic, now everyone thinks things are going to get better in a couple of months. More people will hang on longer, losing more money themselves and keeping numbers up so the whole industry will keep losing.
Been there, done that.


Decmeber 27, 1998

Our marketing board wants us to let them lead us through the crisis. Easy for them to say they aren't losing their livelihoods and homes. They are doing a good job selling hogs during the strike but I am not seeing the kind of political action from them which I see from NPPC. I say lead, follow, or get out of the way.
Lambton county


Decmeber 25, 1998
re: Show of good faith
Hatfield Quality Meats established a floor price of $25 per hundred weight through at least the end of December after which the policy willbe reveived. Farmland Industries did something similiar. Would the Ontario Packers show their good faith in our industry. It wasn't long ago when they asked for us to increase our production and help support reduction of their wages to their employees in order for them to be able to pay more for our hogs.My what short memories they have. It's not all the farmers fault that there is a shortage of hook space but the farmer is paying for the total damage.Most of the expansion in production has come from vertical integrators and just about all the expansion this upcoming year again will be done by the integrators and yet it is the independent farmers that are footing the total bill. There is a transition taking place here of who is going to be producing pork in the future.It happened in the chicken industry in the States a number of years ago and all the production is now in the hands of a few. We can't stop the greed from the corporate giants but we can stick together and align ourselves with industry partners that have a common vision that includes a sharing of the wealth. Vertical integration only maximizes profits for the one at the top but it reduces productivity. Keeping that in mind I see a great future for independents that are willing to put the efforts into formalizing a strategic plan to get them into the new millenium.


Decmeber 25, 1998
re: This web site
You've got a lot of good info here. Good work Farm & Country.
Huron.


Decmeber 24, 1998
re: x-mas
Merry Christmas Farm & Country and thanks for setting up the most complete site I've seen for our industry.
Huron county


Decmeber 24, 1998
re: This web site
I am a fuel dealer in North Dakota. I saw this web site mentioned in the Christian Science Monitor.
My customers are mainly farmers. They are losing money this year but none of them blame Canadian farmers. They do blame the Canadian government and our government. It is too bad that farmers are always getting caught between governments and large corporations.





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