Advocate de Janvier, 2007

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La une du Advocate de Janvier, 2007

EDITORIAL: QFA EDITORIAL

Do not pick that scab!

Gib Drury

QFA President

So said my mother to her often scraped and cut son. She would always add, “If you do, it will become infected. And then we’ll have to amputate your arm, leg, or head as the case may be.”

Sage advice, and very applicable to the current bunch of politicians who keep picking at the scab of sovereignty and nationalism in Quebec. Surely our federal representatives can find other more relevant issues to debate. Take agriculture as a case in point. The latest thinking from the feds in their “renewed” Agricultural Policy Framework II is that agriculture is no longer a driving force in rural development. It really makes you wonder: are they blind, or do they just have their blinkers on? Do they not know what “rural” means, or is it “development” that they are having problems with? The only thing that has gone down in agriculture in the last 20 years is the number of farmers and the prices they receive for their produce. Their productivity, the area cultivated, the gross output, the total value, the exports, and most of all their cost of production, have all skyrocketed. The cost of production is most significant, since that’s what farmers pay to produce their crops. That is money spent in the rural economy for all their inputs, such as machinery, fuel, seeds and services. In other words, money spent on rural development. We are talking about billions of dollars here—dollars that make the rural economy rock and roll. Seems to me that if you were elected to lead this country, this would be the kind of development you would want to encourage.

Instead we now have recycled “consultations with stakeholders” for yet another kick at that cat otherwise known as federal agriculture policy. Please, spare me this ordeal. The Canadian Federation of Agriculture has already stated that we need a Canadian Farm Bill equivalent to our American neighbours. If we are going to have more free trade, let’s at least have a level playing field in our two countries. The grain and oilseed sector says that we need a business risk management program based on the cost of production, like we have in Quebec. So why not listen to them? If you guarantee that at least the cost of production will be covered, then all those input and service providers in agriculture will be paid and the rural economy will flourish.

Now that’s a way for a political party to get re-elected to power: leave the scab-picking debates on nationalism alone and concentrate on rural development with an emphasis on a flourishing agricultural base. Or, as Mom would say: “Keep picking at that scab and we will have to amputate.”

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U.S. looking to lift ban on older cattle imports

Andrew McClelland

Advocate Staff Reporter

It didn’t come in time for Christmas, and it was a bit too late for New Year’s, but the U.S. may have given Canadian beef producers the best gift of the season by announcing that it intends on lifting the last remaining bans on Canadian cattle being shipped across the border.

The United States Department of Agriculture (USDA) stated on January 4 that it hopes to soon lift the ban on live cattle born after March 1, 1999 from Canada being imported into the U.S. That’s good news for Canadian farmers in the beef sector, who have been haemorrhaging money since the U.S. closed the border in May 2003 after a single Alberta cow was diagnosed with BSE, commonly known as “mad cow disease.”

The U.S. government is resuming plans to permit imports of meat from animals of any age. The U.S. and Canada were on-track to implement the plan back in 2005, when a further case of Canadian BSE stalled all talks on the move. Now, talks could result in a variety of different meat products crossing the border, including small intestines, bovine blood products and casings, all of which were previously prohibited.

All of these changes are currently under review in the United States. The USDA has invited citizens and public organizations to comment and voice their opinions on the move. The government will consider all feedback and present its final decision on March 12.

Dennis Laycraft of the Canadian Cattlemen’s Association (CCA) breathed a sigh of relief upon hearing the news, a sigh that was echoed by all of those who depend on Canada’s beef industry for their livelihood.

“Addressing these final issues will impact between $400 and $450 million annually in the Canadian beef industry,” said the CCA’s executive vice-president.

However, Laycraft was quick to mention that the beef market will not start rolling at full speed immediately. “Our scenario is likely next summer before everything comes into effect,” he noted, citing that the country’s beef producers may not see a substantial pay-off for a significant time period.

Risk assessment completed

According to the USDA, the reason for its government’s unanticipated change of heart towards Canadian beef is the result of extensive scientific testing. In a press release, U.S. Agriculture Secretary Mike Johanns stated that his country has completed a study assessing the threat Canadian products pose to the U.S.

“We previously recognized Canada's comprehensive set of safeguards,” Johanns stated, “and we have now completed a risk assessment confirming that additional animals and products can be safely traded.”

Not surprisingly, Minister of Agriculture Chuck Strahl issued a response press release applauding the USAD’s decision.

“We commend the U.S. for its leadership by proceeding with another important action toward normalizing trade between our two countries,” stated the federal agriculture minister.

“Internationally, this rule reinforces the message that safe trade can continue when appropriate BSE safeguards are in place, as is the case in Canada and the U.S.”

R-CALF not happy

Curiously, the Ranchers-Cattlemen Action Legal Fund (R-CALF) issued a press packet entitled “Why Over 30-Month Canadian Cattle and Beef Should Not Be Allowed into the U.S.” on January 3—a day before the U.S. announced its intention. The Montana-based group stated that it has “empirical evidence that flatly contradicts [the USDA's] assumption that any remaining BSE-infected cattle in Canada would be few.” R-CALF plans to move its case to block the USDA’s decision to a new court as soon as possible.

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QFA discusses English-language services with La Financière Agricole

Gib Drury

QFA President

Several QFA directors and staff got up early to make a 7:00 a.m. breakfast meeting in Quebec City on December 6. In attendance were: Gib Drury (president), Chris Judd (vice-president) and Ivan Hale (executive director). They were joined by Ken Brooks, UPA president for Saint-Jean-Valleyfield English sector, Eddy Whitcher, president of the Estrie UPA English, Wally Metcalfe, an English producer from Abitibi-Témiskamingue.

The purpose of the meeting was to discuss how La Financière Agricole would comply with the Office québécois de la langue française (OQLF).

La Financière has always tried to accommodate the needs of English farmers. Many of their staff are bilingual. In most parts of the province correspondence has been available in English, and forms and contracts could be completed in English, if that was the farmer's wish.

The “language police” as they are often referred to, has concluded that all farms in Quebec are to be considered as business ventures, whether they are sole proprietorships or not, incorporated or otherwise. By adopting this position, they then informed La Financière Agricole that in order to comply with the provincial language law La Financière must communicate with farmers in French, although may send a “courtesy copy” in English to those people who cannot understand the French. By their same logic, he OQLF has said that all forms and contracts between farmers and La Financière, whether completed on paper or electronically, must be filled out in French, even if the farmer is unilingual English.

In 2001 La Financière began steps to meet the language police's narrow interpretation of the Charter of the French Language. Last year the OQLF informed La Financière that the necessary changes must be completed by 2007. Its staff has been working hard to prepare a francization program that will not impose undue administrative burden or cost, and that will not disrupt their good relations with the English farmers who are their clientele.

Daniel Berthiaume and Claude Robitaille of La Financiere Agricole sit on the francization team. They attended the meeting and outlined plans to the QFA representatives for reaction.

La Financière's staff will continue to speak with English farmers in English. But, henceforth, all official communications from La Financière will be sent out in French, usually accompanied by an unofficial English version as a “courtesy”. Forms are supposed to be completed in French. To assist in this regard, English versions of the forms will be available, but they will be marked as “specimen”.

La Financière is redesigning its website. (It has almost nothing in English at this time.) Since it must comply with the OQLF, only information of a “general nature intended for all public audiences” will be available in English. It is still unclear whether documents specifically addressed to farmers will be available in English. We have suggested that if farmers must complete the French forms then the website could be designed to have pop up menus and help features to provide explanations and terms in English.

According to the Francization Program document distributed at the meeting, La Financière must ensure that contracts with farmers “are drafted only in the official language”, i.e. French. An English version, marked “specimen” will be made available to help producers to complete the French version of the contract. The QFA representatives explained that English-speaking farmers are not happy with being required to sign legally binding documents in a language they may not understand. Farmers will still be able to sign contracts in English with their financial institutions and notaries, but we wonder whether this will change as the language police continue their crack down.

La Financiere Agricole prides itself in having “live” persons answering the office telephones, rather than using automated systems. In regions where there are concentrations of English-speaking producers it should still be possible to have assistance in English.

The meeting was most productive. Messrs. Berthiaume and Robitaille listened carefully to our concerns and welcomed our suggestions. They assured us that La Financière Agricole will do everything in its power to ensure that the Francization Program is implemented smoothly and effectively for its English-speaking clients. QFA believes that the good working relationship that was established will be continued.

Editor's Note: QFA received a beautiful Christmas card from Yvon Vallières, Quebec's Minister of Agriculture, Fisheries and Food. In part, it said, “I am taking advantage of this opportunity to encourage you to make a special place on your table for Québec's excellent products as you celebrate with family and friends.” The card was in English only.

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Time to be heard!

Commission on the future of agriculture public hearings

Andrew McClelland

Advocate Staff Reporter

The provincial government announced dates last month for public hearings for its Commission on the future of Quebec agriculture and agri-food. All hearings will take place between February and June of this year in various regions across the province.

Quebec agricultural producers have the chance to stand up and be heard, a point emphasized by Quebec Farmers’ Association President Gib Drury.

“It is essential that as many producers as possible take the time to participate in these hearings as we are the ones who will be affected by the Commission’s recommendations,” said Drury. “The future of our income stabilization is at stake and unless we extol the benefits of the current system we risk having it taken away from us. If the province turns its back on its commitment to maintaining family farms and our collective marketing system we would be forced to adopt the American style of industrial agriculture.”

The QFA has been speaking to producers in preparation of its report to the Commission. Following the public hearings, the Commission will make its report to the provincial government in January 2008.

Organizations and individuals who have already submitted a report to the Commission will be able to make presentations and voice their concerns with commission officials. However, anyone who has not submitted a report is welcome to comment or ask questions at the public hearings. Registration is required in advance. In respecting their commitment to full transparency, the Commission is placing copies of correspondence and briefs it receives from producers and interested citizens on its website for all to see.

Following the regional hearings, the Commission will hear from producers’ groups with province-wide status. Drury, QFA Executive Director Ivan Hale, and association board members will present the QFA's brief to the Commission at that time. The QFA is currently conducting a survey on the topic to get a better sense of how producers feel about the future of agriculture. To participate, fill out the questionnaire at www.QuebecFarmers.org or contact the QFA for a paper copy.

For more information on the Commission on the future of Quebec agriculture and agri-food, visit their website at www.caaaq.gouv.qc.ca . While the Commission’s discussion form will be posted on the site in both official languages, the site itself is available in French only.

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Times they are a-changing

Ivan Hale

QFA Executive Director

Hard to believe, but QFA has been around for 50 years. It was on April 4, 1957 that the Association was formed "for the study, defense and promotion of the economic, social and moral interests of its members. QFA was incorporated under the Professional Syndicate Act. Notice was published in the Official Gazette No. 17 for 1957.

This venerable organization has stood the test of time very well. It has evolved to meet changing needs. As a testament to the founders, the structure has remained essentially unchanged throughout the decades; QFA's by-laws have not been changed since November 2000.

Starting this spring, QFA will begin a thorough review of its structure. It is highly likely that recommendations for by-law amendments will be brought to a vote of the members attending the annual general meeting in Ste-Anne-de-Bellevue in early November.

The QFA by-laws committee is inviting members and interested individuals to submit proposals for change. You can read the current by-laws by visiting the QFA website at: www.QuebecFarmers.org. If you do not have access to the Internet then simply contact the office and we will be happy to send you a copy by fax or regular mail. To allow sufficient time for the committee to undertake a thorough review of all the suggestions you are asked to submit your suggestions by May 30 at the latest.

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Africa is capable of feeding its people

On a UPA International Development trip to Niger, QFA’s executive director finds West African farmers struggling to become agriculturally independent…

Ivan Hale

QFA Executive Director

“Africa is capable of feeding its people.” This was the title of the first West African regional forum on food self-sufficiency, held in Niamey, Niger from November 7-10. The event was organized by Le Réseau des organization paysanne & et de producteurs de l’Afrique de l’Ouest (ROPPA) (West African network of agricultural producers).

I was invited to participate by the UPA’s International Development (UPA-DI) program. UPA-DI was one of approximately 20 sponsors of the forum. Readers will recall that thanks to support from the Canadian International Development Agency UPA-DI has been involved with projects in French West Africa over the past 15 years.

Over 350 delegates took part from 16 French and English speaking countries—among the poorest in the world. As well, there were participants from six countries in Europe, plus one American and two of us from Quebec. Participants were largely from farm groups. Added to this were government bureaucrats and elected officials, as well as economists and specialists in rural and agricultural development. The congress was opened by the Prime Minister of Niger.

Contrary to what you might expect, the event used all modern technologies. PowerPoint presentations were de rigeur. I was one of few people without a cell phone. Wireless internet connections were available in the hotels and conference hall. Conference news sheets were published daily. Media, including the BBC and TV5, were in evidence throughout. Presentations were made in French and English with translation services. For many of the delegates these were their third or fourth languages. An exhibit area allowed people to greet delegates and share information. Food self-sufficiency essentially means the right for each country to determine what to produce and what to consume and eat.

The r ight to f ood s ecurity

The Rome Declaration defined food security as the condition in which “all people, at all times, have physical and economic access to sufficient safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life” (FAO World Food Summit, 1996). Food security refers to the responsibility of the state to ensure the subsistence of all its citizens, defending them from the negative impacts of trade and market forces. The subject is central to many of the negotiations that take place at the World Trade Organization meetings. It is of high concern to agricultural producers in developed and developing countries around the world.

Lessons to be learned from the European experience

In reflecting on the usefulness of West Africa pursuing a food self-sufficiency strategy of its own, Nick Koning of Wageningen University in the Netherlands explained that the European Union has always pursued such an approach, although it was described in other terms. The underlying belief was the same: foods should be produced locally if possible. The commitment was to protect farmers. European countries adopted the strategy to varying degrees, with different results. For example, the most protectionist was Germany and its productivity rose dramatically in the last 50 years. Britain, on the other hand, did not interfere in a protectionist manner and consequently its production stagnated.

Professor Koning noted the importance of protecting farmers against cheap imports, saying there are three tools that are key to promoting agricultural development:

-import tariffs

-stockpiling

-export subsidies.

He asserted that following a food self-sufficiency strategy in West Africa does not prevent export, but prices must be raised, which requires supply management. He reminded everyone of the successes of the oil suppliers. He said a food self-sufficiency strategy would work well for cocoa, cotton and coffee, among other crops. He cautioned however, that it would be hard to compete with developed countries that are able to grow the same crops, e.g. cotton. (Note: the United States produces 1/5 of the world’s cotton.) He identified cocoa as a crop which cannot be grown in developed countries and recommended the approach be tried for cocoa.

He identified conditions necessary for successful supply management:

-Strong involvement of farmers

-The system should be self-financing and independent of external support

-The design should try to avoid “free riders,” e.g. countries receiving advantages for which they do not pay

-Implementation of production controls

-Ensuring sustainability in the future.

Prospects for s uccess

National governments in the region have identified food self-sufficiency as a priority for West Africa and have set a goal of allocating ten per cent of national budgets to agriculture. However, due to extreme poverty in the region this will difficult to achieve. Present levels are around three per cent.

Many of the challenges relate to the lack of infrastructure, e.g. transportation networks. Realizing this, governments are looking to establish a new currency in the region, and to reduce or eliminate trade barriers within the region. Supply management is also being piloted in several countries. They know the importance of coherent and consistent policies and actions.

One African speaker summed it up this way. “We are dealing with a poverty culture. The salaries we pay producers are adequate for just six days a month. For the remaining day’s needs we must look to God.”

“We produce what we do not consume, and we consume what we do not produce,” said one of the African speakers. “Some of our raw products are exported, only to be re-imported as finished products.”

There are many challenges in the region including:

-Underperforming plant and animal species

-Drought

-Degraded soils

-Plant and animal diseases

-Lack of processing facilities for foods and textiles in the region.

Conclusions

The event was a milestone. It signified the determination of the people in West Africa to work together to make the necessary changes to feed their populations now and into the future. The hard issues were identified and tackled head on. They included the need:

-for a common currency in the region

-to reduce barriers for shipping

-to build a transportation infrastructure

-for national governments to deliver on their commitment to allocate 10 per cent of their budgets to agriculture

-for supply management and collective marketing of locally produced products

-for increasing the level and type of food processing within the region.

I have no doubt that the necessary leadership will be provided by people in the region, but outside enabling assistance will be both necessary and welcomed.

The ROPPA network has been strengthened as a result of hosting the event. As well, expectations on the network have increased significantly. Will it have the necessary capacity to meet them?

West Africa is poised to make dramatic changes in food policy and practices in the coming decade. ROPPA will be a lead agent of change. Governments in the region cannot and are not expected to do it alone, but they must contribute essential funds, infrastructure and legislative frameworks.

For more information on West Africa’s quest for food self-sufficiency, visit www.roppa.info

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Outaouais region participates in Meritas PATBQ 2006

Linda Larocque, agronome

PATBQ and superior genetics advisor

Test station and young farmer advisor

MAPAQ- Outaouais sector

Once again this fall, the ten provincial winners of Meritas PATBQ 2006 were announced at Expo-Bœuf on October 6 in Victoriaville. To see the list of the cow-calf enterprises that were honoured, you can consult the following website: www.mapaq.gouv.qc.ca and click on the “ Grands événements”  tab

To participate in this important province-wide event, each region had to analyse the performance of its active PATBQ ( Programme d’analyse des troupeaux de boucherie du Québec) subscribers for the production cycle from November 1, 2004 to October 31, 2005. The Outaouais region was no exception. After analysing the fifty or so herds enrolled in the program, the region sent its list of nominations to Quebec, which included eight farms in the category “purebred production” and eight in the category “commercial production.”

The choice of participants for the Meritas is made using the following three criteria: a minimum of 25 calvings, a minimum of 15 calving intervals and a minimum weaning rate of 65 per cent for purebred and 75 per cent for commercial operations.

Once the provincial list of cow-calf participants was compiled, a panel of judges, composed of five regional PATBQ advisors, examined the technical performance of each participating herd. The evaluation criteria for the purebred category include the Technical Efficiency Index (TEI) for 50 per cent of the points and the Superior Genetics record for the other 50 per cent. For the commercial category, only the TEI is used to compare the farms.

The Technical Efficiency Index takes into account the adjusted average weight at 200 days, the weaning rate and the average calving interval in days. The mathematical formula is as follows:

Adjusted average weight 200 days x Weaning rate x 365

TEI =

Average calving interval in days

Based on the TEI, the 10 best cow-calf operations participating in PATBQ for the Outaouais region are:

For the purebred category

1- Fern Charolais senc. (Éric Trépanier) in Fassett

2- Ferme Gagnon (Yves Gagnon) located in Chénéville

3- Cedarview Farm (Carolyn Kelly) located in Farrellton

4- Ferme Sage Enr (Stanley Christensen) in Lac Sainte-Marie

5- RMR Red Angus (Rodger Pfeil) located in Mulgrave

For the commercial category

1- Roger Prévost in Luskville

2- Ferme Roger Robertson located in Duclos

3- Patrick Kavanagh in Campbell’s Bay

4- Willow Hollow Farms located in Shawville

5- Andrew Simms in Shawville

Both the Fern Charolais senc. and the Roger Prévost herds succeeded in ranking among the top 20 best-performing herds registered with PATBQ in the province. This is no small accomplishment, since there were 599 farms enrolled in PATBQ in 2005.

The following table shows a comparison of certain criteria between the five best Outaouais herds and those of the province for the two production categories.

OUTAOUAIS

PROVINCE

Purebred

Average number of cows

76

82

Real average weight at weaning (lb)

626

738

Average weight adjusted to 200 days (lb)

609

656

Weaning rate (%)

90

100

Average calving interval (days)

382

378

Commercial

Average number of cows

103

49

Real average weight at weaning (lb)

585

698

Average weight adjusted to 200 days (lb)

569

634

Weaning rate (%)

93

101

Average calving interval (days)

369

370

How about your cow-calf herd? How does it compare with these results? If you are not able to answer that simple question, it is perhaps time to consider enrolling in the Programme d’analyse des troupeaux de boucherie du Québec (PATBQ). To do so, simply contact the MAPAQ office nearest you and a PATBQ advisor will be pleased to see you.

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Something new in the b ull t est s tations of the Outaouais and Quebec

Linda Larocque, agronome

PATBQ and superior genetics advisor

Test station and young farmer advisor

MAPAQ – Outaouais sector

Again this year, the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation (MAPAQ) has given a subsidy and technical support for the beef bull test stations in Quebec. Will it be the last year? Only the time will tell…

As of November 13, 2006, eight test stations across Quebec have admitted 629 bulls to be tested on various criteria. In the Outaouais region, two entry dates were scheduled in mid-October.

In fact, in spite of the new regulation requiring that the bulls’ adjusted pre-weaned average daily gain be equal or superior to the breed average, the Quyon station, operated by Mr. Garfield Hobbs accepted 67 bulls on October 17. These bulls belong to four breeds, notably: 16 Angus, 17 Charolais, 15 Limousin and finally 19 Simmental.

The following day, the Vinoy station, operated by Ferme Gagnon, accepted 60 bulls representing three breeds, notably: 13 Angus, 18 Charolais and 29 Simmental. The Angus bulls tested at this station were all black in colour.

Following an adaptation period of 28 days, the 128 bulls will be weighed on two consecutive days in order to establish their official weight for the start of the test. Subsequently, they will be weighed every 28 days for the duration of the test, which is 112 days. After each weighing, MAPAQ will publish a weight report, which can be consulted on the website www.agrireseau.qc.ca .

At the end of test, a visual evaluation of muscling, feet and front and hind legs is done by a group of three producers. The scrotal circumference will be measured by a veterinarian, using a Reliabull tape, during the last weighing.

The measurements of the back-fat thickness, marbling and ribeye area, which had previously been done by a technician from Beef Improvement Ontario (BIO), will be done this year by a technician from the Centre du dévéloppement du porc du Québec, using an Aloka 500 instrument, subsequent to an agreement between this center and MAPAQ. The cost of this service will be $18 per bull this year.

Since the ribeye area will now be measured in all of the Quebec bull test stations, this new data will be used to calculate not only the ribeye index, but will also be used in the global evaluation of the bulls, which takes into consideration several criteria at the end of the test.

Specifically, the global value is composed of: 40 per cent of the gain index, 15 per cent of the weight per day of age index, 10 per cent of the ribeye index, 10 per cent on muscling, 10 per cent on feet and forelegs and the final 15 per cent on feet and hind legs. This global value, along with the individual elements used in its calculation, is listed on the bull’s performance sheet, which is then used to compile the sale catalogue.

Breed requirements for adjusted pre-weaned average daily gain (ADG) and for corrected scrotal circumference at one year old, for the breeds present in the Outaouais test stations .

Breed

Adjusted ADG

(lb/day)

Scrotal circumference

Limit at 1 yr. (cm)

Angus

2.03

32

Charolais

2.43

32

Limousin

2.03

30

Simmental

2.43

33

The sale for the bulls tested in the Outaouais will be held at the Ferme Gagnon on Saturday, March 17, 2007 at 1:00 p.m. If you are looking for a bull, start your shopping by visiting one of the Outaouais test stations. Following that, do not hesitate to call me to obtain the Expected Progeny Differences (EPD) for the tested bulls. The more information you have, the better your choice will be.

In conclusion, I would like to inform you that following a request from the Outaouais Bull Test Station Association, MAPAQ’s Direction de l’innovation scientifique et technologique has accepted to subsidize a summer bull test in the Outaouais. There will be a capacity for 30 head and it will be done in Shawville at the Rolling Acres Farm. If you have a bull born between May 27 and September 14, 2006 and would like to put it on test, please contact me. We could then begin pre-registration and try to form several groups.

Linda Larocque, agronome

MAPAQ – Outaouais sector

Tel: 819-647-5779, or 1 888 206-7575, ext. 230

 E-mail: linda.larocque@mapaq.gouv.qc.ca

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UPA

Vallières and Strahl are back to square one

Pierre-Yvon Bégin

At the start, 2006 seemed like a year when our provincial and federal ministers of agriculture might actually get along. Initially, the two ministers seemed to have cause for real hope in agreeing with one another. Yvon Vallières, Quebec’s agriculture minister recently returned from surgery, and federal Minister of Agriculture Chuck Strahl, recently elected, had both fought off cancer. Following a first, fairly promising meeting in February, both ministers soon fell back into the old habits of hard-headedness.

The first example came in May, when the federal Finance Minister Jim Flaherty, presented the initial budget of Stephen Harper’s Conservative government. Besides the regular funding for agriculture, this budget added an additional billion dollars to help farmers improve their financial situation. Strahl dealt out this one-time billion dollar envelope through the Canadian Agriculture Income Stabilization (CAIS) program, while also considering inventory levels in the formula. The problem was that Quebec had been using this formula since the introduction of the CAIS program. The result, in spite of Strahl’s repeated promises that Quebec farmers would receive “their fair share,” was that Quebec received only crumbs, barely $50 million. Even a demonstration of farmers on Parliament Hill and interventions by Minister Vallières didn’t affect any real change. Ottawa remained inflexible and insensitive to the demands of grain producers who needed emergency financial support.

The gap between Quebec and Ottawa widened with the discovery of a parasite in a field of potatoes in Saint-Amable last August. During talks regarding the revision of the Agriculture Policy Framework, everyone had agreed that a disaster program was needed for such emergencies. Ottawa insisted on a historical cost-sharing formula—60 per cent for the federal and 40 per cent for the provinces. Quebec, for its part, maintained that it did not have the financial means to support this percentage and that Ottawa should pay the entire bill.

In early December, the UPA annual congress provided an opportunity to see just how far apart the two visions were. Feeling confident after just having received a favourable review Minister Vallières shared his feeling of frustration towards Ottawa. However, in a press conference held afterwards, he reinstated his faith in federalism’s patient approach to change. “The oxen are slow, but the earth is patient,” he said, paraphrasing an old Tibetan saying. According to one of the Minister’s close associates, the National Assembly veteran had already experienced his “political hour of glory” after announcing a three-year “regulatory truce” with the Environment ministry.

What will 2007 bring? Both Quebec and Ottawa will be consulting farmers—the former with its Commission on the future of agriculture and the agri-food sector and the latter on the restructuring of the Agricultural Policy Framework. Luckily, the voters will get to have the last word in this saga, since both governments will eventually have to call elections and get their “report cards” from the people.

LTCN 2007-01-04
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UPA

One year of marketing beef by the carcass

Julie Mercier

In beef production, 2006 was a period of restructuring for the marketing of cull cattle. The year got off to a whirlwind start with the implementation of carcass-based marketing, a single marketing channel and the acquisition of the Colbex/Levinoff slaughterhouse and processing facilities for cull cattle. During the course of the year, Quebec beef producers became the sole owners of Colbex/Levinoff, after starting out with 80 per cent of the shares. Slaughterhouses that refused to sign the new marketing agreement for cull cattle formed the Association des abattoirs de bovins de réforme du Québec. The organization was established in September and the Fédération des producteurs de bovins du Quebec (FPBQ) has continued to have dealings with it. In fact, in order to accommodate the association, the FPBQ has kept using electronic auctions.

Environmental issues, stockpiling solid manure in particular, have required considerable energy. The FPBQ continues to push for the acceptance of the practice and is calling for the reorganization of genetic improvement services. A feasibility study recommended the creation of a Centre of Expertise for Beef Production. For its part, the Financière agricole du Québec (FADQ ) modified its program for financing beef cooperatives, by raising the ceiling on loans from four to five million dollars per cooperative.

The grain-fed veal sector encountered considerable commotion in 2006. Following the merger of two major meat processors, Montpak and Bellivo, the Régie des marchés agricoles et alimentaires du Québec (RMAAQ) supported the development of the sector by approving a process to transfer “reference production history” between producers.

During the year, four new cases of Bovine Spongiform Encephalopathy (BSE) were discovered in Canada. At the end of December, the Canadian Food Inspection Agency (CFIA) announced that they were closing the investigation of the eighth and most recent case, found in northern Alberta. The agency was unable to trace the animal back to its farm of origin. On another front, the Quebec Court heard the class action brought against the feed manufacturer Ridley and the Government of Canada. It was quite a lively way to end the year for the 30 or so Quebec producers who had received a feed supplement that had come in contact with bi-products banned for ruminants.

In 2006, there were not many new developments regarding the re-opening of the American border to live Canadian cattle or to meat from animals over 30 months old. In late fall, the U.S. reactivated the legislative process to lift the embargo. Similarly, the group R-CALF reinitiated their legal action to block the entry of all cattle and meat from Canada.

LTCN 2007-01-04
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UPA

Dairy producers satisfied with increased support price

Jean-Charles Gagné

The Canadian Dairy Commission’s decision to raise the support price for skim milk powder will result in a revenue increase at the farm level of three-quarters of a cent per litre, as of February 1, 2007. Although dairy producers had been asking for a little more, the decision was well received. The support price for butter remains unchanged.

Support prices are the prices that the CDC buys and sells butter and skim milk powder in order to stabilize seasonal variations in the domestic market. They are also used by provincial authorities, such as the Régie des marchés agricoles et alimentaires du Québec (RMAAQ) to establish the price paid to producers for their milk that is used for making yogurt, cheese and butter.

“We recognize that the Commission took into consideration the 3.9 per cent increase calculated by the P5 for fluid milk in determining the increase in the support price for skim milk powder (1.06 per cent), although they should not normally link the two,” declared Marcel Groleau, president of the Fédération des producteurs de lait du Québec (FPLQ), on December 18, 2006. “On average, the overall increase in the on-farm price of milk (fluid and industrial) will be 1.5 cents per litre, which corresponds closely to inflation.” At their semi-annual meeting in November 2006, Groleau had revealed that Dairy Farmers of Canada was hoping for an increase in the price of industrial milk equivalent to inflation, which was calculated at 2.1 per cent. The FPLQ does not plan to contest the increase approved by the Canadian Dairy Commission before the RMAAQ.

The president of the Dairy Farmers of Canada (DFC), Jacques Laforge, also considered the increase to be “reasonable,” since it partially covers the cost of inflation and 50 per cent of producers will now be covering their cost of production. “Western dairy producers may not be satisfied with the Commission’s decision, because the price increase allowed for fluid milk will not be as significant,” admitted Groleau.

According to the Commission’s spokesperson, Chantal Paul, “there will not be an increase in the support price for butter, so as not to upset the equilibrium we are beginning to see in this fragile market. The commissioners decided, after much discussion, that the increase of 75 cents per litre at the farm level was reasonable under present circumstances, where production costs have changed very little since last year and where restaurateurs and consumers are demanding a freeze or even a reduction in price.”

The new support price includes an increase of 0.03 cents per litre to cover the storage cost of the regular butter inventory, which has grown over the last year. The margin allotted to processors for skim milk powder that they sell to the Commission will not be changed. In 2005, Canadian dairy producers delivered 48.6 million hectolitres of milk destined for processing. If the new increase approved this year had been in place, it would have meant $36.4 million more in the pockets of dairy producers. Quebec producers, with 23.6 million hectolitres, would have received an extra $17 million.

LTCN 2006-12-21
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UPA

Private bush lots are not out of the woods

Pierre-Yvon Bégin

Since April 1, 2005, the forestry industry has lost more than 8,000 jobs following the closing of numerous paper plants and sawmills. According to Laurent Pellerin, president of the Union des producteurs agricoles, this is a perfect example of globalization, where wood producers have been hit head-on by the forestry crisis. In 2006, private woodlot owners not only lost a good part of their market, they now also fear they may not retain the “residual volume principle,” a policy which gives them priority over the public forest in the supply management and marketing of timber.

The forestry industry could have declared 2006 as “annus horribilis,” to use the famous phrase coined by Queen Elizabeth II. The crisis began in 2005, but attained its peak last October at the end of the softwood lumber dispute with the U.S. In order to comply with the terms of the agreement—and faced with a strong Canadian dollar and free-falling prices—industry managers began to shut down mills. Since April 2005, according to figures from the Ministère des Ressources Naturelles, 131 mills have closed.

Unfortunately, there is no improvement in sight for 2007. All forestry stakeholders agree that the restructuring of the industry is by no means over. Already confronted with a 20 per cent reduction in timber rights, certain regions like the Bas-Saint-Laurent and the Cote-Nord will have to absorb further reductions in their wood harvesting, according to preliminary results issued by the chief forester.

A new agreement

In a rare moment of joy, private woodlot partners have come to an agreement on a new five-year plan. Last August, the Quebec government sealed the deal by injecting an additional $5 million per year for sylvicultural practices. The regional agencies for the development of private woodlots were delighted with the deal, retaining their $30 million budget and promising to reduce their administrative costs by three per cent.

Unfortunately, the meeting of the woodlot partners ended on a sour note. At the request of the Regroupement des societés d’aménagement forestier du Québec (RESAM), the minister of Ressources naturelles et de la Faune, Pierre Corbeil, agreed to review the whole wood marketing process. The various regional syndicates representing the Producteurs de bois du Québec did not see the re-opening in a favourable light.

At the end of October, the Quebec government unveiled a renewal plan for the forestry industry, accompanied by a budget of over $300 million in new money. At the end of November, Corbeil tabled Bill 49 to amend the Forest Act. The proposed modifications would, among other things, allow mill owners to transfer a portion of their Timber Supply and Forest Management Agreement (TSFMA) from one mill to another. This would permit them to reduce their transportation costs. Immediately, private woodlot representatives took a unanimous position against it. For the Fédération des producteurs de bois, this represented a serious breach of the “residual volume principle.”

Pierre Corbeil ignored the apprehensions of the private woodlot owners and the government adopted the bill under a gag order. The year 2006 also ended on another sour note for Minister Corbeil, who also had to justify the allocation of 500,000 cubic metres of wood to Ontario and U.S. sawmills, since no Quebec companies could be found to harvest the trees toppled by strong winds last summer. While the minister had predicted this possibility, it is admittedly not the kind of news that a premier likes to hear on the eve of a general election.

LTCN 2007-01-04
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UPA

Fruit and vegetable l abelling becomes a big issue

Marie-Claude Poulin

“On many bags of frozen vegetables, it is written in large print ‘CANADA A,’ and on the back of the bag, you can read in small print ‘Product of Mexico,’” angrily commented Gilles McDuff, general manager of the Fédération québécoise des producteurs de fruits et legumes de transformation (FQPFLT), while presenting the results of a study on product labelling conducted by the federation.

As part of the study, conducted over one year, the FQPFLT evaluated the compliance of package labelling with regulations concerning bilingualism, nutritional information and country-of-origin labelling. “In eleven out of thirteen cases, the labelling was not in compliance,” revealed the general manager, speaking to producers gathered for their annual general meeting. “This situation is abnormal and confusing for consumers,” he added.

However, Huguette Robichaud, of the Canadian Food Inspection Agency (CFIA) clarified that some labels might be in full agreement with the law. Even if the product is not produced in Canada, it is perfectly legal for vegetable processors to mark “CANADA A” on the package, according to current regulations. “This term signifies a product of superior quality,” she explained. The Canadian processing plants approved by the government to market products must classify them according to different categories. “A bag of peas, where it is written ‘CANADA A,’ for example, is a package that contains the most tender and best-looking peas, without any blemishes.” Under today’s regulations, indicating a product’s category is compulsory. It must be present on the front of the package along with the product name. If the product is imported and merely packaged in Canada, only a mention of its origin is required, but if it underwent a more substantial transformation through processing, the origin becomes optional. “In Canada, we import olives from Spain, for example. In the processing plant, the brine is removed and new brine added. The product is put into bottles here. It then becomes a product of Canada, even though we don’t grow olives here,” explained Robichaud. Another complication arises when a processor mixes vegetables coming from different places. The product is then considered as a new product of Canada since the mix was created here. Robichaud admits, however, that the regulations were created some time ago, when very few foreign products were being imported into the country and the situation has changed considerably since then.

In reaction to the situation, the FQPFLT has adopted a strategic action plan to give precedence to Quebec products. In addition to fighting against imports and pushing to modify the existing labelling regulations, the federation also plans to work on market development over the coming year. To do this, a new “Committee for Innovation” has been formed. “We must find new ways to do things, to create new products,” declared FQPFLT President Claude Lacoste. “We must think about how we can do things differently on our farms, in the processing plants and in the distribution network, to differentiate ourselves and become the first choice of consumers again.”

LTCN 2006-12-21
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UPA

Harper keeps his promise on Mirabel farmland

Julie Mercier

Almost 40 years after the expropriation of 97,000 acres for the construction of the “new Montreal airport,” Mirabel farmers will finally be able to reclaim the 11,000 acres they have been demanding for years.

Hundreds of farmers packed into the Sainte-Scholastique parish hall to hear Prime Minister Stephen Harper “correct a historic injustice.” “Farmers will now have the opportunity to regain the farmland that they have been cultivating for years, farms that have belonged to their families for generations, and to turn a new page,” declared the Prime Minister, under applause from the participants. “It is a page of agricultural history that we are turning today,” added Laurent Pellerin, the UPA president, while acknowledging the patience local farmers have shown their government over the years. “We have been pounding on government doors for years. Finally, we have been heard,” affirmed Marcel Denis, president of the local UPA syndicate for Sainte-Scholastique/Mirabel.

A vague announcement

The land retrocession will be done through the “Sales Program for the 11,000 acres.” A transition committee including tenant farmers, the UPA and government representatives will determine the conditions. According to Harper, his government will set the price based on market value, with certain deductions. During the 1985 retrocession of 80,000 acres, the Mulroney government agreed to a 15 per cent discount for expropriated farmers. The sales should begin next summer.

Stumbling-blocks ahead

Yesterday’s announcement caused some envy. The unhappiest of all was, without a doubt, the mayor of Mirabel, Hubert Meilleur. The mayor stated that he could not believe the Harper government has ignored his claim for between 2,000 and 2,500 acres for industrial development. “It is not true that we will let 100 people make money on the backs of the general population of Mirabel,” shouted the mayor at the end of the press conference. “We will not be pushed around by the Mohawks either,” he added, vindictively. The Mohawks Natives have made their intentions clear regarding the 11,000 acres, and have notified the Prime Minister that “they will do anything in their power to make the government respect their rights.” The Mohawk community claims that this land is part of their ancestral territory from the Seigneurie du lac des Deux-Montagnes. The Prime Minister acknowledged that “there are legal obligations to consult with the First Nations.”

Aéroports de Montréal, which has continually opposed the retrocession of the 11,000 acres, will now have to give up its fight. The organization had hoped to conserve this area in anticipation of a return of commercial flights to Mirabel in 2040. But the Prime Minister quickly closed the door on that possibility. “Mirabel will still have 6,000 acres. It continues to be the biggest airport in Canada and it is not the busiest,” he remarked.

“Mirabel used only five per cent of the expropriated area. What a mess, what a waste, what a scandal,” exclaimed Marcel Denis, president of the Committee for the 11,000 acres.

LTCN 2006-12-21
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UPA

Producing pork and grain: why is it cheaper in the U.S.?

Thierry Larivière

The cost of producing pork in the United States is less than in Canada, which gives our southern neighbours a considerable advantage in positioning themselves on the world market and even displacing Quebec pork on the supermarket shelves here.

The main reason for this has to do with grain prices, which are systematically less expensive in the U.S. When corn is selling for $110 per ton in Quebec, many producers can buy it for $60 US per ton in the major corn-producing states. The situation has changed somewhat with the recent rise in prices, but it is the price differential that is important. At the moment, there is still a $30 per ton difference between the price of corn delivered to Toledo, as compared to the port in Quebec City. Furthermore, there is certainly an even larger discrepancy (before transportation) between corn coming out of a field in the American Midwest, compared to a field in the Montérégie region of Quebec. Keep in mind that feed represents about one-half of the cost of production.

“We have been turning a profit for the last 34 months,” declared Bryan Black, vice-president of the National Pork Producers Council (NPPC), speaking in Quebec City at the recent semi-annual meeting of pork producers. Black attributes this success to having attained a 15-per cent export target that stimulated competition, as well as three or four years of “cheap” feed prices. This situation may change, however, with the proliferation of ethanol plants, which could cause the price of corn and grain to rise. Black does not know if hog producers will be able to get better prices for their