Lethbridge Herald, The (Newspaper) - March 16, 1972, Lethbridge, Alberta
VOL. 1, NO. 1 THURSDAY, MARCH 16, 1972 20 PAGES Milk market vote By RIG SWIHART Herald Staff Writer A vole deadline of March 27 has been set to decide the fate ot proposed milk mar- ket sharing plan. Producers registered in the province have been sent bal- lots willi return mail included. A 50 per cent majority is needed before the Alberta plan can be put into effect. The plan will establish mar- ket sharing quotas for all pro- ducers on a national level. It is designed to balance milk pro- duction on a national basis with ttic demesne demand for manu- factured milk products. It will be a program of na- tional supply management, to attain cor.trolled supply of milk and milk products in order to get better prices and a fain'r distribution of export cosls. It will be a federal provin- cial plan administered on a pro- vincial basis. BACKGROUND Dick Boulton, producer rep- resentative for Silverwood Dair- ies to the Lothbridge Milk Hanovarian Abrupt, led by owner Fred Hess Hanovarian stallion at stud By IUC SWHTAUT Herald Staff Writer Abrupt, the only German- bred Hanovarian stallion in Canada, is standing at stud in the Sunnyside district. Owned by Fred Hess, the horse was imported to Canada in 1967 and has been stabled at St. Georges Stables in Midna- pore. The owner and importer was Joe Selinger. Hanovarians are the pride of international horse jumpers. They have been bred for 230 years, originally as an all-pur- pose horse used for plow work, hauling artillery for armies and for riding. The modern Hanovarian is a cross between the original work- type horse, and "hot blooded" thoroughbred and Arabian horses. Used by most countries for International competition, the crossbreeding has refined tlie lines and given Ehe animal the temperament needed for endur- ance contests. Abrupt is 03 inches high at the withers, a large animal by domestic standards. It was the last foal of Abglanz, the most famous Trakehner sire in mod- ern times. Trakehner horses are an East Russian breed fa- mous in Olympic cross-country endurance races. They have full bloodbrothers standing in the German gov- ernment royal stud farm in Celle which has the top 16 sluds in the country. A chestnut color, Abrupt ex- hibits excellent mannerism and temperament, and has excellent movement and conformation to make a good competitor. Since arriving in Canada, he has sired 58 offspring. He has been bred to Morgan, quarter horse, thoroughbred, Arab i a n and Hanovarian marcs. Typical of the strong blood lines, all the offspring have ex- hibited the dominant Hanovar- ian qualities. The stallion Is a registered hunter horse, a classification denoting superior jumping char- acteristics. There are only three other stallions registered in this class in Alberta. Mr. Hess said the sIrenglh and height of the breed and an inherited characteristic which gives it heart (the animal doesn't shy away from jumps) is the reason for it being used in competition. A special training ring will be built at the Hess farm, four miles north of the Lcthbridgc Research Station. Mr. Snlinger, one of the premier English style riding instructors in Can- ada, will hold three-day clinics, A starting date has not been announced. Mr. Hess said Abrupt wilt 1x5 standing at stud at his farm- Fees will be Producers Association, said the neod for the plan is very real, with problems building up for many years. There was a time when there was no federal support for the dairy industry and Canada never had adequate supplies for domestic use. The government initialed a plan to subsidize any person who would produce manufac- tured miik (milk used to make dairy products, excluding fluid milk for drinking "Soon everybody was produc- ing manufactured milk and a surplus he said. "Since the government was the purchasing agent, it bought 1 arge amounts of pro duel! on during the busy manufacturing season and then replaced de- pleted stocks during the winter. "This was a price control measure to combat the high and low production Tlis government found that stocks continued to build, so it bad to start selling on the world market. Since the world market price was below the domestic prke, the government lost money anil this loss w as p assed through the processor to the producer. To keep tlie dairy industry alive, the government I hen ini- tiated a subsidy paid en the basis of a federal subsidy eligi- bility quota. It was paid ui full to the producer. Smco the govern m en t wa s losing money on the world market, it decided to establish a holdback It kept a percentage of the producer sub- sidy to compensate for the losses incurred in the market- ing of the surplus production. Mr. Doulton said, at this time there was absolutely no con- trol en (he production of milk. Tlwi surplus m anuf acturc d production continued to in- crease and the subsidy pay- ment to the producer continued to decrease. A greater share of the subsidy was reeded by gov- ernment to lake care of the export losses. In 1969, the Daiiy Farmers of Canada were asked to draw tip a plan to remedy the situa- tion. Quebec and Ontario, tlw largest m Uk producing prov- inces, initiated a milk market sharing plan on a provinc ial level in I97J. Mr. Boulton said Alberta could have solved its problems with milk product surpluses on the British Columbia market. "Hie over-all decision was ttot the master plan would have to be on a national for the program to work projv said Mr. Boulton, "All aspects of the dairy in- dustry must also be included, with manufactured milk ship- pers, fluid milk sliippers and cream producers represented." HOW IT WORKS The key to tho plan is a milk nicikeL sharing quoin. This is the amount of milk or cream that a farmer can pro- duce in excess of his present fluid milk quota or subsidy eli- gibility quota (amount produc- ed to qualify for subsidy) with- out being penalized. If a shipper produces any product over his market shiro quola, the price received for the overproduction will be tlie world price at that time. The world price usually is much lower than the domestic price and there will bs any tub- sidy added price re- ceived. CSvery p reducer in tlu> prov- ince will be assigned a irmrkei share quota to ensure adequate coiHiol on production. QUOTA ESTABLISHED The dairy year April 1, 1970 to March 31, 1071 is lo used to ascertain quotas for the new plan. Producers of manufactured milk cv cream will be allocated a market share quota equal to the number of pounds of milk or cream marketed by them in tlw scUctcd dairy year. The quota can also bo set hy using the producers federal sub- sidy eligibility quota for the year. Some flexibility is built into tho plan. If a producer ships milk within a range of 00 to 110 per cent of the federal subsidy eligibility quota, lie can receive a market shore quota equiva- lent to 10 per cent of his bility quota. Small pro ducc rs who se pro duct ion is less than 420 pounds of bulterfat per year will not be Issued a subsidy eligibility quota. The small producer will not issued a market share quoUI. He will not be penalized for overproduction. Once he goes over Hie 420- pound lim i t( he wil 1 cally come under tlie plan. A straight computation will be used for fluid shippers. The total amount of milk shipped in the selected year and the total amcuiit of milk for which the highest price is received are the key. The producer can elect lo use- 15 per cent of his number one s ales (for wh ich he received the highest price) to set his quota. The other option is more complicated. He can subtract the total of number one sales plus an additional 15 per cent of those sales from the total milk shipped. The largest figure will be tho market share quota.. Mr. Boulton said the produc- er representatives feel that Uio plan is sound and will bring stability to the dairy inditsJry in Canada. "In the long run, it will ben- efit both the producer and tho be said.