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CFA Commentary: Farmer's Share of Consumer Food Dollar.

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    CFA Commentary: Farmer's Share of Consumer Food Dollar.

    This Thanksgiving, Be Thankful for Canadian Farmers



    By Ron Bonnett, CFA 1st vice president

    The rising cost of food was a topic that ranked high in the minds of Canadians this year. As a farmer and 1st vice president of Canada's largest farm organization, I am often asked: "How much of what I pay in the grocery store goes back to the farmer?" The Farmers' Share, a recent study commissioned by Manitoba's Keystone Agricultural Producers (KAP), Saskatchewan's Agricultural Producers Association (APAS), and Alberta's Wild Rose Agricultural Producers (WRAP), sheds some light on this question. The Canadian Federation of Agriculture hopes that this Thanksgiving season, families will pause and appreciate their local farmer as they comb through grocery store aisles.

    While Canadian farmers still provide some of the most affordable food in the world, the amount that returns to the farm gate is relatively small. The report showed that, on average, only 27 per cent of the cost of an entire week's worth of groceries for a family of four goes back to the farms where the food is produced. Although there was a rise in the cost of groceries by 3.2 per cent from 2008 to 2009, the average farmers' share decreased by 1.7 per cent from the previous year. While consumers paid $6.01 more for groceries, the farmer received $0.86 less, and the middleman received $6.87 more.

    The farmers share does vary significantly between food products. However, this should not be interpreted to mean that some farm sectors are not feeling the price squeeze. The number of steps in the chain between consumers and producers, variations in the costs associated with producing different commodities and differences in the shelf life of some farm products are just some of reasons for variations between different farm products.

    In this study, 89 per cent of the foods analyzed are listed as being produced in Canada. To ensure that consumers are able to identify Canadian food products and support our agriculture sector, the CFA will continue to advocate for effective ingredient-based 'Product of Canada' guidelines that are both informative to the consumer and practical to the agri-food industry.

    Farmers not only produce food, but they are environmental stewards as well as business owners. Canadians continue to receive high quality food produced at the highest food safety and environmental standards because farmers re-invest in food safety, environmental and animal welfare initiatives on their farms. Factors such as the rising cost fuel and fertilizer, as well as utilities, wages, and other services all put a strain on the farmer's bottom line.

    The items listed below often make up a typical Canadian Thanksgiving meal. It is interesting to note the relatively small farmer's share of these products. Click here to view the full report.

    Choosing locally-produced foods cuts down on the transportation costs and re-invests in the local economy. The CFA hopes that Canadians will support their local farmers and demand locally sourced products at a time when farmers need them the most. The CFA hopes that Canadians appreciate the value of the Canadian agriculture industry and the farmers who help put meals on their tables.
    This harvest season, be an informed consumer. Support your local farmer.

    Background Information


    The Farmers' Share
    The average Farmers' Share in this project is 26.25%. The share does vary significantly depending on the specific food, and even between food groups:

    2009 Farmers' Share 2008 Farmers' Share

    Vegetables and Fruit 25% 29%
    Milk and Alternatives 53% 47%
    Meat and Alternatives 22% 28%
    Grain Products 5% 4%


    Featured Products and the Farmers' Share

    Total Cost Farmers' Share
    2008 2009 2008 2009

    2 Loaves of Bread $5.74 $4.54 $0.26 $0.22
    900 g Cheese $16.11 $14.82 $7.38 $8.02
    2 cups of Red Pepper $3.99 $4.99 $0.40 $0.26
    600 g Turkey $11.25 $11.25 $1.74 $1.74
    600 g Sirloin Tip Beef * $4.61 $9.15 $2.05 $2.05
    1.2 kg Strawberries $7.98 $9.78 $1.64 $1.31
    1.5 L Yogurt $5.77 $5.01 $1.34 $1.47
    700 g Oatmeal $2.35 $3.30 $0.08 $0.05

    *Indicates the main change from 2008 to 2009 during which there was a dramatic rise in pork and beef prices, but a reduction or no change in money received by pork and beef producers. As a result, the farmers' share decreased considerably.
    About the Canadian Federation of Agriculture

    Founded in 1935 to provide Canada's farmers with a single voice in Ottawa, the Canadian Federation of Agriculture is the country's largest farmers' organization. Its members include provincial general farm organizations, national and inter-provincial commodity organizations, and cooperatives from every province. Through its members, CFA represents over 200,000 Canadian farmers and farm families.

    #2
    I would love to see this done this fall, I am sure our share would be almost cut in half from when that study was done.

    Comment


      #3
      Hi Furrow:

      I think you are right with grain prices dropping since the spring.

      I am not sure how much lower we can go though.

      Farmer share on 2 loafs of bread

      Retail Price - $4.54 grain - $.22

      Oatmeal was worse -

      $3.30 - grain $.05

      Overall share Grain - 5-4% of the retail food dollar.

      We grow corn, soys and winter wheat...I am wondering what I can do to pull back some share and improve profitability...

      Joe

      Comment


        #4
        Joe, easy... Turn your raw worthless product that is overproduced into a final retail product that has profit potential and become vertically integrated.

        Or you can be like all the rest of the farmers and just whine about it.

        Comment


          #5
          Notice which system has the highest percentage....although it is also the less "changed" (porcessed) of all.
          What does that tell us?

          Comment


            #6
            If most of the Dairy producers are in Quebec they will in Federal law force the rest of Canada to pay cost plus a profit. Therefore either inherit a dairy with quota, or beg to get laws passed for other farm products consumed in Canada! Simple, but not a snowball's chance in hell in our lifetime.

            Comment


              #7
              If I remember product of Canada regulations. All listed except
              milk could be called product of Canada. Whether the grain or beef
              was growth in Canada doesn't count, as it is less than 50% of retail
              value.
              Years ago I read a British "think tank" report on all the government
              money going into agriculture. Basic conclusion was British
              food product should be shut down and imported from the lower
              cost areas. There was more money to be made by moving things
              in multi-step production than doing all the work on a small
              scale in one area. This was most like 15-20 years ago and it
              has really come true.
              Canada and the world doesn't need any grains from Western
              Canada. Viterra can now source their malt barley requirement out
              of Australia. Wonder how long before the first boat load of Australian
              barley show up at a Sask. malt plant. CN and CP may give them some
              very good rates for backhaul.

              Comment


                #8
                Some 12 years ago i was on the way to vegas on my only holiday of my life and half way in montana paul harvey came on the radio. He said the wheaties company had made a deal with tiger woods to put his face on the box for 10 cents. He also said the value of the wheat was 2 cents. So much for the price of grain having anything to do with the cost of food.

                Comment


                  #9
                  cn and cp do give very good rates for backhaul. They have been moving grain from the prairies to montreal and back to Vancouver for years. They also send grain to churchill and then back to Vancouver. Its how they calculate the rate cap. AND it costs farmers millions. But it creates jobs.blah blah blah.

                  Comment


                    #10
                    Good point bucket, as we sit and take it on the chin year after year.

                    Comment


                      #11
                      I wouldn't say western canadian farmers are taking on the chin. These bastards and the one organizing this party(cwb) are not even kind enough to buy vaseline for the screwing we are taking.

                      The cwb is out buying bins for some organic (sorry pars) bakery in Winnipeg because some lazy ass is too lazy to carry a few bags of wheat.

                      Comment


                        #12
                        Nothing wrong with calling a spade a spade. I agree.

                        Canada cannot afford to have our public institutions created so we are foced to deal with them, and then charge fees or taxes, or tarrifs to spend whatever they like. Uninhibited.

                        Bins. Scholarships. Checkoffs.

                        It all ends up being a slushfund built with my money to support some slob who whines he's finacially crippled.

                        Don't get me started.lol

                        Comment


                          #13
                          Where were the farm organizations when the NISA claim was going on and a estimated billion dollars was shifted from the west to the east by alleged breaches of the laws no less. Since 1935 really. How about running for the Federal Liberals in Manitoba similar to the lawyer May provincially in Calgary West in Alberta and then not. I do track these things. So Lewis is giving the land grab speech in Saskatoon today which was put in the court file this past April 2009. I Donata (Dohna) know about these farm organizations and what purpose they actually serve when they disregard a billion dollars or trillions if punitive.

                          Comment


                            #14
                            They were hiding under the same bed, as they were, when Andy McMeachan was being tried in the courts.

                            Easy to pluck when you're scared to fight back.

                            "So Lewis is giving the land grab speech in Saskatoon today which was put in the court file this past April 2009."

                            Bring me up to speed on this. I'm a numblenuts about it. Pars

                            Comment


                              #15
                              And the whining continues.

                              Comment

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