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It's time to give farmers and consumers a choice Re: Rising food costs make healthy eating tougher (November 18). As a family farmer, I have the ability and desire to produce a healthy, affordable product for all consumers. However, I do not have the right! The right to produce some agricultural products such as milk and eggs is controlled by a supply management system. When initially established, it benefited both the farmer and consumer by establishing a reasonable price to the consumer and a fair return for the farmer. However, it now violates a most fundamental human right and alienates the most vulnerable consumer, the unemployed and the working poor. To solve this problem, we have to examine why the price of the right to produce some agricultural products is so high. First is the issue of levies. Currently, an egg producer must pay 35 cents to the Egg Farmers of Ontario for every dozen eggs marketed. This money is used to fund their enterprise, not create the product. The second and biggest part of the problem is the cost of quota. Quota, simply put, is a piece of paper stating that a farmer has the right to produce a certain amount of product. It is not the property of the farmer, but of the marketing board. Currently, farmers must pay about $145 per laying hen or $30,000 per kilogram of milk (or one cow) for the right to produce. |
Furthermore, when $300 million a year is
being paid out to farmers who are selling their quota and exiting the system, those remaining in the
industry (including the consumer) must bear that cost. Ultimately, it is the consumer who feels the brunt
of these outrageous costs in the form of an increasing purchase price. As quota prices rise, so does
the cost of the product. In order to alleviate this, farmers need to have more than one marketing choice.
While initially developed to support the family farmer, the marketing scheme of the boards is outdated and needs revamping. What business plan would utilize a 40-year-old marketing strategy? Producers and consumers must have a choice! As a distributor of agricultural products, I have seen firsthand, the repercussions of continuous price increases. Several times over the past years, the DFO (milk marketing board) has increased the price of their milk. As a result, demand from my customers decreased and never returned to previous levels. One client told me that in order to increase sales, the milk must be priced competitively because 90 per cent of his restaurants' customers want to make the healthy choice of milk over pop, but can't afford to! What can be done? As a consumer, we can demand that the government give farmers a choice to produce a healthy, affordable product so everyone can enjoy them. As a producer, step up to the plate and make the changes; your urban neighbours will thank you and reward you with more demand for your product. Finally, as a farmer, help thy neighbour in need, not in thy greed. Shawn Carmichael Shanly |