| Kamenz dishes on proposal motivation
by SUSAN MANN
Ontario Farm Products Marketing Commission chair Geri Kamenz’s explanation in a letter to an Ontario politician on why changes are needed to the processing vegetable industry’s marketing structure is being sharply criticized.
On June 28, the commission posted a proposal on the Ontario Regulatory Registry to remove the negotiating authority of the Ontario Processing Vegetable Growers marketing board and add provisions to turn the board into an industry advisory committee. Comments are due Aug. 12.
In his July 26 letter to Chatham-Kent-Essex MPP Rick Nicholls, Kamenz said Ontario’s processing vegetable industry has been in continuous decline since the 1960s. Growth in consumer demand is mostly being met by imports.
Kamenz was responding to Nicholls’ July 19 letter seeking more information about the commission’s proposal and questioning its handling of the consultations.
The regulatory posting process is the opportunity for interested people to share their comments and perspectives, Kamenz said.
On the need for change, Kamenz said all processors identify the current marketing structure as rigid and inflexible. It creates barriers and makes “them uncompetitive to their competition.”
In proposing the change, the commission’s analysis included reviewing industry reports going back to the 1980s, looking at market data since the 1960s from all available sources and meeting with many industry watchers and insiders (both growers and processors), he noted.
In the 1940s, there were 18,000 active processing vegetable growers, whereas today there are about 412, he said.
The processing vegetable board has been in place since the 1940s.
“We have moved from a vibrant processing community in many communities, to less than a handful today,” Kamenz wrote. “Ontario is missing an opportunity to grow our market share both here at home as well as in other markets.”
The commission’s proposal “will offer the industry the freedom to choose both how and who they do business with,” he explained.
Nicholls challenged Kamenz’s response. The MPP noted he too has talked to processors. Some have said they want the marketing structure to stay as it is.
Nicholls also said proper consultations must happen on the proposal.
“We believe that has not occurred.”
The commission’s proposal should be put to a vote, he said. Kamenz’s not answering that question “tells me that there’s not going to be a vote,” Nicholls noted.
“This change will be dictated.”
Kamenz didn’t really answer the question on why the commission was proposing changes now, Nicholls added. He said Kamenz tries to justify proposing changes “by taking a trip down memory lane” in the letter.
Nicholls wrote another letter to the commission on Aug. 2. He said the commission chair’s letter generated additional questions and comments.
Fruit, cash crop and sheep producer Marshall Schuyler is so concerned about Kamenz’s handling of the proposal, he has written to Agriculture, Food and Rural Affairs Minister Jeff Leal.
Schuyler farms in Norfolk County and owns Canada’s largest tart cherry processing business. He said in a telephone interview in proposing a change in how processing vegetable prices are determined, “the commission is going beyond its traditional, historical mandate. They are not the policy makers. The policy makers are the elected representatives we have.”
Major decisions to add or remove powers to marketing boards should be made by elected representatives and not by the commission, he said.
Schuyler currently doesn’t grow processing vegetables but he did previously and is a past chair and a past director on the processing vegetable growers board.
Leamington-area processing vegetable farmer David Epp said his primary concern is the potential end result of removing growers’ ability to collectively negotiate prices. He is also concerned the process to make changes “does not even come close to any kind of a proper fair process.”
In March, processing vegetable growers “went through a public consultation process where the growers overwhelmingly supported the existing system,” he said. “The vast majority of them don’t want to sit directly across from their customer and argue on the final price.”
That’s why growers elect and “invest in directors and staff,” he noted.
Epp agreed there has been attrition among processing vegetable growers and processors “but I assume the attrition here (in the processing vegetable industry) is less than in other industries.”
Schuyler said it’s uncharacteristic for him to get involved in “this kind of stuff” but he felt compelled to do so because “this to me is a fundamental change in the system that will dramatically impact and be detrimental to Ontario agriculture in the long term.”
In his Aug. 3 letter to Leal, Schuyler said the current process requiring processors and the vegetable board to negotiate fair and reasonable prices along with sales terms and conditions results in contracts “that provide a necessary degree of certainty and stability for everyone in the value chain.”
Schuyler said Kamenz’s letter responding to Nicholls’ questions shows the commission chair “has a complete lack of understanding of business in general, and specifically the processing vegetable industry.”
Kamenz said in his letter to Nicholls that the current regulations are, as Nicholls’ indicated, a “proven method.
“That proven method is taking us in a well-established, proven direction; fewer growers, fewer processors, on a road to extinction.”
Schuyler said in his letter raw product pricing has not been an impediment in the processing vegetable industry.
Schuyler said to Leal that it has become clear to him “the real problem here is the leadership at the Farm Products Marketing Commission.”
He also told Leal that Kamenz has provided his view of the world “which in no way reflects reality.”
Kamenz “talks about the free market system. In the free market world I live in, someone who performs as poorly as Mr. Kamenz finds himself unemployed,” Schuyler wrote. BF
|
Comments
Kamenz does not look out for farmers. We need a new chair I would suggest Stephen from Huron, Webster or Thompson.
Mr. Webster and/or I would gladly do the job - he's the smart one while I'm the educated one. However, neither of us has any intention of listening to farmers whine (illegitimi non Carborundum) about the really-basic things they have deliberately chosen to ignore and that's pretty-much most farmers, all of the time, especially the ones who benefit from existing legislation which could, by definition, change at any time.
In the same way that Ian Cumming recently published a column about the adage - "You made your bed, now lie in it", Mr. Webster and I would both have a sign on our desks (clearly visible for all visitors to see) saying the exact same thing, and it should shorten the visits by farmers expecting us to "look out for them" when they can't and/or won't look out for themselves.
Stephen Thompson, Clinton ON
Im surprised BF allows that type of language on this site. Foul use of words in any language is still foul.
"illegitimi non carborundum" is a term frequently seen on paperweights and other office accessories, and is described as being "humorous and uplifting" and "sure to make you smile".
On the technical side of things, "Illegitimi" has no meaning in Latin and, therefore, since "illegitimi" isn't a word, "illegitimi non carborundum" cannot be considered a "foul use of words".
Therefore, the "foul use" of a word that isn't a word is as much of an impossibility as simultaneously being an economist and a supply management supporter.
Stephen Thompson, Clinton ON
Oh sure and maybe Donald Trump would be great for the job as well, he might be free come November.
Kamenz may be on to something with this "cleaner" talk, only in the end it will be the farmers that are taken to the cleaners!
Three words for the vegetable growers, corn,soybeans and wheat.Lets see how long the processing industry last without a supply.
Unfortunately, vegetable growers don't seem to understand that an adversarial system, such as the one currently used to price vegetables, creates adversaries and legitimizes and to some point even enshrines the culture of all things adversarial.
Even more unfortunately, the adversarial nature of what seems to be welded into the DNA of vegetable farmers can be seen in the ways in which and the number of times FPMC head, Geri Kamenz, is demonized and demeaned by his critics including Mr. Schuyler who should know better.
And, both sides can't be right - Geri Kamenz says the present system is the road to industry extinction while grower, David Epp, claims the end of the present system will cause the end of the industry. These views are so far apart that one side is not just wrong, but is horribly wrong and that's not good for anyone involved, and not good for anyone in agriculture.
One thing is clear, however, and it's that vegetable growers seem to relish being insulated and isolated in a declining industry, and that makes no sense to those of us who see isolation from the rest of the marketing channel to be archaic and unproductive.
Stephen Thompson, Clinton ON
The way Mr Kamenz describes his role he will soon be up for domination as most un-liked by all sides. By Christmas all he will want is a hug, a 100,000 dollar a year hug.
Mr Kamenz does not stand up for farmers with the current pro. Government . Many changes need to happen on many Boards but Kamenz is not the person for the job.I remember talking to Mr Kamenz about truck speed limiters on older farm trucks. He did not like to be told of any concerns that did follow the government line. The same thing happens at the white bean board. Stephen Webster
OPVG do not realize that they are wearing a blindfold in who they are asking for help .
Geri is correct and being honest . You have to give him credit for leaving OFA and moving on to Farm Products . At least he knew he could not be a "cleaner" while representing/leading those who he was to clean unlike what we have witnessed lately .
When government, on behalf of all Ontarions, has an agenda to increase the size and scope of the agricultural processing sector, or at the very least prevent further systemic decline, it pays attention when, as noted by Geri Kamenz,
"all processors identify identify the current marketing structure is rigid and inflexible. It creates barriers and makes them uncompetitive...."
Of particular significance, and completely-damning to the position taken by vegetable growers, is that Kamenz used the word "all", rather than the words "some", "a few" or "many" when referring to vegetable processors.
If that marketing system description applies to processing vegetables, it applies, in spades, to supply management, not just because of national barriers but also because of inter-provincial barriers.
Supply management proponents have, therefore, every reason to distrust government claims of continued support for their rigid, inflexible and un-competitive marketing system.
We do live in exciting times!
Stephen Thompson, Clinton ON
Post new comment