The Milk Producer - July 2010 - (Page 29)

GENERALMANAGER’SMESSAGE By Peter Gould A privilege, not a right History explains why we have supply management and why we must maintain vigilance n my travels, I am reminded all the time of how we risk losing connections with the past. That raises the question of whether it matters. I believe very strongly that it does. If we don’t understand why supply management started and values it’s built on, we run the risk of losing what so many people worked so hard to build and so long to maintain. We know about the external risks and pressures—World Trade Organization (WTO) negotiations, the tariff wall and leaks in the border—but I and others have often said the greatest risk to supply management comes from within. The marketing system that benefits producers, processors and consumers was created in Ontario with the Milk Act in 1965. It is meant to be a marketcorrecting mechanism. It takes out the extreme price swings that exist in an open market. It also ensures producers have their milk picked up and get paid for it. This was a real worry before 1965, but those days are a distant memory for most and unimaginable for others. The milk marketing system that has been honed is based on core values, values which are both highly justifiable and highly defensible. One of the core values is that “efficient producers should receive a fair return for labour management and invested capital.” Out of that was born cost-of-production based pricing. It has served the industry well. My concern about the future is a general one. When we don’t understand the past, there can be a perception that dairy farmers have a right to what they have. Today, some producers feel entitled. That is a huge danger in my opinion. What is enjoyed by dairy farmers in Ontario and across Canada is a privilege, not a right or an entitlement. As such, it must be treated with the greatest respect. As tempting as it might be to charge what the market will bear, pricing must hold true to the core value that has worked since our marketing system was implemented. This leads to the second core value: understanding that orderly marketing exists “at the pleasure of government.” Milk marketing powers are created I through the Milk Act, which designates them to the Ontario Farm Products Marketing Commission. The commission, in turn, delegates authority to Dairy Farmers of Ontario (DFO). The commission has the responsibility of overseeing all DFO’s activities. It takes this role seriously and DFO treats the commission with deference and respect. I sometimes hear producers exhorting DFO’s staff or board not to listen to elected officials, to go in there and “tell them” how things are going to be. We must never lose sight of the privilege afforded the dairy industry. There are few industries that have the authority to control both price and production. Over the years, DFO has made sure it used but didn’t abuse its powers. DFO has gained the respect of both its customers and the government. However, we must never lose sight of the fragile balance and ongoing vigilance required. DFO recently celebrated its 45th year as an organization. There are now third-generation farmers operating under an orderly marketing system. To me, 1995 is the recent past. Many new or younger producers who’ve started in the industry since then can’t remember nearly that far back, let alone before then. Understanding how we got here matters—perhaps more than most people realize. The need for vigilance has not changed, nor will it in the future. The danger is if too many people come to see privilege as a right or entitlement. The way to prevent that is by both remembering and understanding the past, the hard battle in the very beginning and the discipline and leadership required to maintain the system for almost half a century. That is why this special edition of The Milk Producer is being published—so that in another 45 years, producers like you will be able to look back with an equally immense sense of pride and accomplishment. Peter Gould is DFO’s general manager. MilkPRODUCER | July 2010 | 29

Table of Contents for the Digital Edition of The Milk Producer - July 2010

The Milk Producer - July 2010
Contents
Editor's Notes
DFO Chair’s Message
Diary Update
DFO
National Policy
DFC Promotion
Thrill of the Grill
Farm Finance
Foundation for Our Future
Agriculture Minister’s Message
General Manger’s Message
Overview
Then and Now:
Notable Quotes:
Grant Smith
Gordon Coukell
Peter Oosterhoff
Vera Mitchell
Bill Simpson
Lew Dunk
Albert Gauthier
Gary Marshall
Stuart Steckle
Tom Kane
Pat McManus
Research
Applied Science
Ruminations
Markets
New’N’Noted
Back Forty

The Milk Producer - July 2010