Better Pork - June 2007

Letters

The myth of a fair return from the market

In response to Richard Smelski’s question, “Can the Canadian pork industry think ‘out of the box?’” (Better Pork, April 2007), I would suggest that it is doubtful. I do not believe the industry can identify the box.

The box is the myth that the free market system is working by providing a fair return on investment and labour throughout the chain from suppliers, to producers, to processors to retailers. This fair return is the alleged benefit of the competitive economic model as opposed to other systems.

Most producers recognize that competition has been reduced by mergers, acquisitions and bankruptcies throughout the industries that supply producers, and among the industries that process and retail farmers’ products. Particularly, there is so little competition among packers that the impact of one large plant interruption produces near chaos.

I will admit that pretending that the market works is easier than coming up with a solution which will please producers and the lobbyists who represent the corporations between producers and consumers. However, without change, the long-term outcome does not point to improved margins for producers.

I do not believe that urban consumers will volunteer or should volunteer to pay more taxes to help pork producers any more quickly than they rushed to help tobacco producers. Trade agreements will allow them to buy cheap pork from areas where environmental and other regulations may be less stringent than here.

We have already learned that Free Trade does not equal Fair Trade. These agreements benefit some sectors of the economy and weaken others.

I suggest that until producers start to quantify these problems and use the information to justify fair returns from the market, as opposed to “handouts” – sorry, “hands up” from governments – the industry will limp along until none of our children will see a future there.

John Fallis
Millbrook