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    Free Trade

    Got an updated version of the NFU "Free trade: Is it working for farmers?" flyer first released 2002. It explains many of the things we see happening in our rural communities.

    Comparing 1988 to 2010:

    Exports have tripled,
    Farm Debt has tripled,
    Realized net farm income for Canada's farmers has dropped from $3.9 billion to a forecast $0.3 billion in 2010. The latter figure after taxpayer funded support payments of $3.8 billion are factored in.

    Canada has lost 80,000 farms since 1988, we now have 70% less farmers under 35, the number of hog farms has dropped 80%.

    Retail prices have risen - ground beef and bread both more than doubled yet feeder calves are at the same price, culls cows 14% cheaper and wheat 20% cheaper.

    Farm input costs have doubled, tripled or more for most inputs.

    Corporate concentration and market power has risen yet the wages paid to those working in the agri-food processing sector have dropped considerably.

    The conclusion is clear - Trade agreements have given global companies enormous market power to increase profits by raising farmer input costs while lowering farm product prices. The result is increased profitability of multinational corporations at the expense of Canadian farmers.

    So much for free trade - and yet the buzz words of our politicians and most commodity groups are "increasing market access" as a means to improve producers bottom line. And the definition of insanity is.....?

    #2
    And it doesn't help that our major trading partner cherry picks which parts of the agreement they will live up to.

    Comment


      #3
      I agree that there has been a loss of
      autonomy. There has also been lots of
      opportunity created, although we can
      readily debate for whom it was created.
      I think the biggest thing free trade did
      was arrive at a point in time that
      coincided with a low $ that resulted in
      our industry moving towards being the
      low cost supplier, rather than the VALUE
      supplier. When the dollar moved up our
      chosen competitive advantage (cheap), we
      were 20 years behind in innovation and
      marketing. For a small industry like
      ours, cheap is the very worst possible
      choice of competition, but hindsight is
      20:20.
      And a whole host of other problems...

      Comment


        #4
        Kato - I should point out that this is a bigger topic than our trade relationship with the US on beef - it is the nature of "free global trade" between almost all countries in it's current form.

        Sean you said "When the dollar moved up our chosen competitive advantage (cheap), we were 20 years behind in innovation and marketing." I think we need to define the "we" and "our" in your statement. I don't think producers chose to go the cheap route - I think that was forced on them by the global trade players. This is about maximising their profitability at producers expense not positioning Canadian beef on a certain marketing platform where it would best increase returns to producers. I'm sure all producers would naturally aspire to be selling the dearest beef in the world not the cheapest but when you have no control over processing or marketing that is not your choice to make.

        The next chapter in global trade with respect to Canadian agriculture is being written as we speak. CETA (The Comprehensive Economic Trade Agreement)is being negotiating on the quiet between Canada and the European Union with the intention of it being implemented in 2011. The drafts indicate an agreement very hostile to the CWB and to supply management in Canada yet at the same time the EU stance of banning GM crop imports from Canada will be maintained and we could speculate that this will be the case with hormone implanted beef also.
        In other words, just as in previous agreements, we will be giving up a lot in return for nothing. Yet just watch as politicians and most commodity organizations jump on the bandwagon of this "free trade agreement" and speed it's implementation. Learning nothing from previous experiences.

        Comment


          #5
          GF - agree with your second paragraph. WE
          the Canadian "INDUSTRY", however we the
          producer were also making money with the
          low dollar (not lots) so nobody really
          said boo...

          Comment


            #6
            GF - "The drafts indicate an agreement very hostile to the CWB and to supply management in Canada yet at the same time the EU stance of banning GM crop imports from Canada will be maintained and we could speculate that this will be the case with hormone implanted beef also".
            Where do you get this from?

            Comment


              #7
              From an article in the "Union Farmer" the NFU quarterly magazine.

              Comment


                #8
                You guy (and gals), are just pawns in a giant chess game. Every year the same tactics on your part, and the same results.

                You will never win unless you have vertical integration and YOU are in control or even have some measure of control. Too late my friends, at least the chicken, egg, and milk producers have some measure of control and even that can be lost at the whim of government.

                The government giveth and the government taketh away.

                Be careful as to whom you elect.

                Comment


                  #9
                  Is there a party that has agriculture on it's radar? Or are you talking of individuals? How much of policy is shaped and reshaped by the bureaucracy in spite of the Minister? If you perceive that as an issue how do we deal with it?

                  Comment


                    #10
                    Individuals running for Parliament...pin 'em down on what they envision for Agriculture and the general party policy. I know they all lie but it won't hurt to get it on the record.

                    Comment


                      #11
                      Actually, first timers haven't been to "lying classes" yet, so they might be better to approach. I'm convinced they have classes in how to answer a question without really answering it, and an advanced class on how to eliminate the two words "yes" and "no" from the vocabulary.

                      Comment

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