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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - May 22, 1973, Lethbridge, Alberta Tutsday, May 22, 1973 THE LETHBRIDOE HERAlO Better marketing woul'd aid economies of developing nations By IRVING C. WHYNOT CP Business Editor RIO DE JANEIRO (CP) A Canadian agricultural expert told an international gathering today that private enterprise has a key role to play in help- ing developing countries diver- sify their economies. R. W. Main, vice-president for administation of Massey-Fergu- son Ltd., Toronto, said private enterprise should concentrate en the "marketing approach" which has been instrumental in improving the quality and vari- ety of food in developed coun- tries. "The marketing approach" as- sures that the right product reaches the right market at the right time and under the right Mr. Main told the International Chamber of Commerce at its convention. "If this can be achieved, then diversification can provide for developing countries benefits of higher farm income and im- proved standard of living." Mr. Main said many devel- oping countries have looked to agricultural products to provide export earnings. But the prob- lems of agricultural diver- sification were "serious and ur- gent" when considered against the background of worldwide balance of payments concerns, the drive for rapid industrial- ization by'developing countries, and of aggressive actions by major producers such as trp United States to achieve in- creased exports. Developing countries looked to diversification as a means of raising the income level of their fanners aid improving the health and energy of their citi- zens through a more varied diet. Countries with exports pri- marily from one large agricul- tural product always faced the recurring problem of supoly and demand. Diversification could help lessen the depend- ency en a single product. Countries with a variety of products from small, and usu- ally inefficient farms, faced a different set of problems. Such countries, Mr. Main said in a paper, must provide long- term, government-supported programs to improve productiv- ity. One solution might be to in- crease the size of land holdings to achieve production objec- tives. "There is, however, a serious risk of driving form labor into the ranks of the urban unem- ployed by moving too rapidly to an economy of large-scale highly-mechanized farms. "If this is tha end result of the policy, then the benefits of diversification are offset by so- cial disturbance and urban unemployment." Mr. Main said private enter- prise may be able to support some aspects of government programs in an advisory capac- ity. He mentioned, for example, that Massey-Ferguson's farm machinery operation in Brazil has participated in a program cf grain development since 1969. One objective was to develop varieties of wheat suitable for Brazilian soil and climatic con- ditiois. "This program has shown ex- cellent results and, when com- pleted, will enable Brazil to be- come self-sufficient in wheat, thus improving its foreign ex- change position." Private enterprise, Mr. Miain said, could make a significant contribution by providing a con- tinuous flow of marketing data and marketing techniques. "This information would bring to the fore the needs and the changing tastes of con- sumers in markets to which de- veloping countries look for ex- port earnings." Price of beef quadruples before it hits dinner table By DAVE AGNEVV WALKERTON, Out. (CP) The auctioneer at the Walkerton public stockyards barks "sold" and the 600-pound heifer calf in the ring is on its way to the din- ner table. Alan Yardley, manager of beef farms in Bruce County about 25 miles south of Owen Sound, pays for the heifer, based on 42 cents a pound. But it may be another seven morths before the animal is ready for the supermarket shelf. By then the calf's weight should have doubled. It's price too will have doubled and nearly doubled again by the time it has been sliced up and purchased by the public. It is all part of a sometimes risky farming business in Bruce County, considered or.e cf Can- ada's largest beef producing areas. The process of getting a steer to the consumer takes more than two years and involves countless middlemen and buy- ers, each driving up the final price. RUNS 900 ACRES Mr. Yardley manages seven farms, consisting of 900 acres, for Allan L. Farrow, a Cana- dian living in Ohio. The 150 cows on the farms are bred in August by seven bulls. By the following May, 135 calves may have been pro- duced. They spend the summer and fall feeding. At the first snow, the cows and calves are put into barns. Kept separately, the calves are led special diet through the win- ter. In the spring, Mr. Yardley de- cides to keep about 40 of the best calves and sends the rest to the auction for sale to feedlot iarmers who fatten the cattle to about pounds for fall sales at the stockyards. This year Mr. Yardley plans to purchase about 450 head of cattle, weighing between 600 and 700 pounds each, for the farm's feedlot. He says he has about 210 days to add about 600 pounds to each animal. This year the farm is experimenting with a special feed and may produce an aver- age daily weight gain of three pounds. MANY QUITTING Mr. Yardley, a beef farm manager for 18 years, mostly in England, says today's costs are so high that many small farm- ers are selling out. The fanner, he says, must op- erate on borrowed money to cover costs with the hope that he makes enough in a year to repay the loan and then start over again the following year. The Glen Allan farms, which re manages, have more than in equipment. He can't find enough farm help, at a month plus house, to operate at full capacity. Mr. Yardley says the farmer today must be a businessman, speculator, laborer and repair- man, all packed into a 14-hour work day. A provincial government re- port shows that the net income from 24 Ontario beef feedlot op- erations rose to per farm in 1972 from in 1971. FEED COSTS SOAR Mr. Yardley says the increase may be deceiving because it doesn't reflect the increase in feed costs. Grain feed which cost about a ton two years ago now sells for The heifer Mr. Yardley bought for at the auction in May may bring in Novem- ber, but it will have cost almost to add 600 pounds to its weight. Additional costs for la- bor, says Mr. Yardley, mean the farmer may net about for each animal. If one steer or heifer dies, it represents a considerable loss to the farmer. If Mr. Yardley wants to by- pass the local auction and ship directly to tlie public stockyards in Toronto, someone such as Roy Scotchmer cf Bayfield, near Goderich, enters the pic- ture. Mr. Scotchmer, 69-year-old drover who has been in the baef business for 40 years, ships cattle from his stockyards to Toronto and is involved in the final sale" to the meat packers. PROFITS LOW He charges the farmer 90 cents per hundredweight. From this he pays for shipment, yard- age and feed costs at the stock- yards, all of which amounts to about a bead. Recently, Mr. Scotchmer shipped 56 head -of cattle, weighing pounds. The shipment sold for He made The trucker made Mr. Scotchmer says he most pit his experience against that of professional buyers at the stockyaixte. To try to get the highest pos- sible price for the beef, Mr. Scotcbmer says be sometimes will withdraw the shipment from the auction if he thinks the bid prices aye too low. He may return it two hours later. At the meat packers, a lead slug is fired into the head of the steer. The carcass is hoisted by its rear legs, .its throat is cut and the blood gushes into a trap. Entrails are removed. The hide is sold to a tanner, the horns and hooves may go to make cosmetics and other parts unsuitable for the market for humors are sold for animal food. The animal may have weighed pounds when it entered the packers. There is only about 600 pounds of meat left. The carcass is cut in half acd placed in the cooling floor where it may remain a few days to age. It then leaves for the super- market to be cut up, wrapped and left waiting for the beef- eating public to purchase for a total of about People don't mind working -they dislike their jobs HAMILTON (CP) People don't mind just don't like their jobs, an indus- trial relations expert says. Dr. John Crispo. dean of the faculty of management stad- ias at University cf Toronto, told graduates of Mohawk College." "I don't think the work ethic is shot. "It's the educated man's willingness to engage in dull, monotonous, repetitious and stultifying jobs." He said society is on a colli- cio.i course. "We give young people more and more education and jet, in many respects, less less demanding work." He denounced the super- ficial answers of the problem, such as piped-in music, office landscaping and company pic- nics, and suggested instead "cafeteria-style benefits" (pick your own job rotation and having workers select their own hours. Young people want to work but they don't want to be bos- sed around, he said. UNIQUE PLAN GUELPH, Ont. (CP) Guelph businessmen have found a unique way to attract custom- ers to the downtown business section on Saturdays. Business- men hire the Guelph Transit Commission buses for one hour to provide free transportation for city residents, a report said. Bsd of of io. but I tMak xtair.-ia aa to significant ocaatidbution of, 'eestot? of fcasisassfis to a Jsasltky ifesze are Firstj need there, Share is gaxmtik in of ecoaosry and Is of tie this for us to by QKH? aimye of 'fefeift I mmld lUea to tbat Hoyal Bank polioy, to loaa applioaiioaa fjoo smaller, this happen. I am asking you to aM to developing 0uoh If w ar@ sKLe to 'businessmen, the loag w be fcslpiag ourselves Alberta, letter we've branch managers. ROYAL BANK ;