Ontario Pork - December 1, 1998


News Release

Ontario Pork Producers Rally Together at Queens Park

 ETOBICOKE, DECEMBER 1, 1998 - Thirty bus-loads of Ontario pork producers descended upon Queen's Park to participate in an industry rally today to increase the awareness of the current economic crisis pork producers are facing. "Our pork producers are looking for a hand-up, not a hand-out," says Will Nap, chairman of the Ontario Pork Producers Marketing Board

Current prices for pigs are the lowest since 1972. Prices have fallen to less than 60% of the average cost of production, which does not even cover the cost of feed.

According to Nap, subsidies and band-aid remedies are not the answer. "We are working towards solutions that involve everyone who has a stake in a long-term viable agri-food industry, including government, banks, feed companies, retailers and processors," he adds.

Kurt Keller, a pork producer from Perth County believes it was of the utmost importance to make the trip to Toronto. Keller says, "Farmers understand the cyclical nature of farm prices and plan around them, but this price drop is extreme. We need our elected members of the legislature to take action now because this crisis not only affects our families but our entire rural community."

"We have 72 employee families relying on our co-operative for a pay cheque and the distressed pork prices are certainly cause for concern," says Lloyd Crawford, general manager of Perth County Co- operative Inc. "Our feed business represents 31 per cent of the total dollar volurne of the co-op and about 60 per cent of the feed business involves sales to the pork industry," explains Crawford.

Fred Groenstege, president of Fred Groenstege Construction Limited agrees, "About 99 per cent of our business comes from the pork industry and we will surely feel the ripple effect if many of the current pork producers do not survive."

"Ontario's gross revenues from pork sales will be down an estimated $180 million this year, a loss of over 25 per cent from last year's sales," says Nap. "We need to address this situation now, and come up with solutions that will benefit our entire industry," he adds.

Ontario Pork represents 6,000 producers in the province in areas including hog marketing, consumer education, research, government representation, environmental issues, animal csre and quality assurance programs. The Ontario Pork Producers' Marketing Board had gross sales of $687 million in 1997, based on sales of approximately four million hogs. It is estimated that the total industry output from farm gate sales is worth $4.5 billion to the Ontario economy.


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