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Ontario Apple Growers Newsletter - July 5, 2005

IN THIS ISSUE
Canadian Apple Industry Investigating Dumping of Washington Apples | Safety Nets Update | NISA Fund 1 Account Balances
National Competitiveness Strategy for Tree Fruit and Grapes | 2005 New Crop Promotion Program Taking Shape
GPS Orchard Mapping Progress Report | Crop Estimating - OMAF Needs Your Cooperation
Environmental Farm Planning and Incentive for Producers | McGuinty Fine Tunes Cabinet - Leona Dombrowski New Ag Minister
Farm Works Get Health & Safety Protection | Apple Slice Team Wins Innovation Award

Canadian Apple Industry Investigating Dumping of Washington Apples
Canadian authorities have been tracking the FOB prices of apples originating from Washington and have found that prices have dropped sharply from previous years. For example, the average price for April 2005 was $.82 per K compared to $1.34 per K in 2004 and $1.15 per K in 2003. This situation has resulted in serious losses for Canadian apple producers. The Canadian industry under the umbrella of the Canadian Horticultural Council's Apple Working Group are in the process of retaining the services of a trade lawyer to conduct a preliminary investigation on varieties including Red Delicious, Golden Delicious, Galas and Fuji's.     >>BACK TO TOP

Safety Nets Update

  1. SDRM - Agricorp has confirmed that SDRM will be available to cover the 2005 crop for those growers who have non-calendar year ends which fall on a date in advance of the 2005 crop.
  2. CAIS Deposit - It is anticipated that CAIS participants will be allowed to receive a 100% rebate of their CAIS deposits. If approved, a letter would be forwarded directly to each participant stating that unless Agricorp hears otherwise, they will instruct banks to rebate the deposits directly to producers.
  3. Future CAIS Deposit Options - Governments are still considering deposit options for future years. These range from a zero deposit requirement to some sort of premium or deductible requirement. Stay tuned.
  4. SDRM/Production Insurance - Although the horticultural sector continues to work with Agricorp and OMAF to develop suitable production insurance products, it is unlikely that these products will be available for 2006. Therefore, we have made a formal request to Minister Peters, that if suitable production insurance products can not be developed, SDRM continue. Further, a proposal has been developed for a new program called "Self-Directed Production Insurance (SDPI)". SDPI is similar to SDRM except that it would include more of the principles of production insurance.
  5. Hurt in Hort - As you are aware, the horticultural sector did not receive any additional financial support from OMAF for 2004. A request has been submitted by OFVGA for similar support as was provided to the Grains & Oilseeds sector. No response has been received to date.     >>BACK TO TOP

NISA Fund 1 Account Balances
The industry continues to promote that all remaining NISA Fund 1 account balances be released and returned to producers immediately. As you are aware, the current requirement is that Fund 1 and Fund 2 must be decreased proportionately over time. Everyone agrees that this doesn't make sense. Fund 1 is after tax dollars and belongs to growers. Having said this, here is a way of tapping into Fund 1 sooner:

  1. Growers are eligible to transfer Fund 1 dollars into their CAIS accounts.
  2. Growers were able to and still may transfer up to 52% of their CAIS reference margin from NISA Fund 1 into their CAIS accounts.
  3. Growers are then eligible to request a refund of the excess (26%) in the form of a direct payment to the producer.
  4. There is no limit on the number of times a producer can go through this process so if you have sufficient dollars in Fund 1 to make a difference, I would recommend you follow this procedure as often as necessary to drain your Fund 1 account.
  5. The balance in Fund 2 may still be drawn down over time.

For more information on this you can visit www.agr.gc.ca/nisa/faq_trans.html     >>BACK TO TOP

National Competitiveness Strategy for Tree Fruit and Grapes
The CHC Apple and Fruit Working Group (includes grapes) have finalized the proposal and it has been forwarded to the Federal and Provincial Ministers of Agriculture for their consideration. The Executive Summary is attached with this newsletter. Please remember this is a proposal for renewal within the apple, grape and tender fruit industries. The Canadian fruit and grape industry has strongly endorsed this program and will urge the Ontario M.P.'s and M.P.P.'s to lend their support. If you have the opportunity to talk to your local representatives, we urge you to lend your support as well.     >>BACK TO TOP

2005 New Crop Promotion Program Taking Shape
The OAG in cooperation with the Apple Marketers Association and Foodland Ontario have developed an aggressive advertising and market development program for new crop apples. An outline of the program is attached to this newsletter. The promotional program for 2005 estimated cost is $1 million. We would like to thank Foodland Ontario for their continued support of Ontario apples. As well, we thank the Agricultural Adaptation Council for their funding assistance.     >>BACK TO TOP

GPS Orchard Mapping Progress Update
Ontario Apple Growers have contracted Agricorp to GPS and collect supporting data on over 15,000 acres of apple orchards across Ontario. A variety of work has been underway to prepare for the actual farm visits. Meetings have taken place with Agricorp Board and staff and definition requirements have been agreed upon with the OAG Technical committee.

Internally at Agricorp they have been:

  • developing GPS technical requirements and protocols
  • developing specifications and programs for information uploading for web access
  • securing 25 committed field staff
  • preparing project manuals, supplies, staff grower lists and many other logistics
  • securing professional GPS training for staff to occur over a two week period (July 5 - 15)
  • field testing assumptions and techniques

Agricorp expects to be out in the orchards starting July 18 th and running full force in all areas of the province at once.

If you haven't already submitted your grower forms to Agricorp (sent to growers the first week of June), please complete them and mail them to Agricorp. The more information they have upfront, the less time they will require of you upon their arrival at your farm.     >>BACK TO TOP

Ontario Apple Marketing Survey (2004 Crop)
By now all OAG members have received a copy of the 2004 crop survey. The OAG urges all growers to complete the survey and return it asap. These numbers will be very important to the OAG when addressing the income crisis in the Ontario and Canadian apple industries.
>>BACK TO TOP

Environment Farm Planning and Incentives
The Honourable Andy Mitchell, AAFC, Minister of Agriculture, has announced $57 million for Environmental Farm Planning and related incentives for growers. I enclose a copy of the program outlining the incentives available to producers.     >>BACK TO TOP

McGuinty Fine Tunes Cabinet - Leona Dombrowski New Ag Minister
The Honourable Leona Dombrowski, formerly Minister of Environment now heads the Ministry of Agriculture, Food and Rural Affairs. Note that Rural Affairs is once again under the Ag Ministry. In addition, the Ministry of Agriculture, Food and Rural Affairs has now been added to the powerful Priorities and Planning Committee of Cabinet, fulfilling a campaign commitment to make Agriculture a lead ministry. McGuinty notes that Ontario's farmers rank amongst the very best in the world. But international circumstances beyond the control of our farmers, from BSE to falling commodity prices, present a significant challenge to our farmers. The Honourable Steve Peters, formerly Minister of Agriculture now heads the Ministry of Labour. We congratulate both ministers on their new appointments.     >>BACK TO TOP

Farm Workers Get Health & Safety Protection
The Ontario government says agricultural workers will fall under the provincial Occupational Health and Safety Act. That's something they were specifically exempted from in the past. This change will provide better protection for both domestic and foreign workers, and help reduce workplace injury and death rates. The regulation implementing the change takes effect June 30, 2005.     >>BACK TO TOP

Apple Slice Team Wins Innovation Award
At the inaugural Agri-Food Innovations Forum, held in Toronto on July 20 and 21, a team of researchers, marketers, and processors were honoured for their work in bringing fresh cut apple slices to the marketplace. The Innovation Award was presented to: Dr. H.P. Vasantha Rupasinghe, Dr. Jennifer DeEll, Dr. Peter M.A. Toivonen, The Ontario Apple Sales Group (Norfolk Fruit Growers' Association, Martin's Family Fruit Farm, Versteegh Brothers Ltd., Bay Growers Cooperative Inc., and Binkley Apples Ltd.) and Steve Karr, President of Pride Pak Inc. Congratulations to all!     >>BACK TO TOP

 

 

 

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