THURSDAY, NOVEMBER 8, 2012
VOL. 90 | NO. 45 | $4.25
FARM FAIR | P5
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
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MIND YOUR PEAS AND QUEUES
HOGS | PURATONE
Puratone bid could ease supply issues at Maple Leaf plant Offer includes livestock, facilities and interests in other joint ventures BY KAREN BRIERE REGINA BUREAU
A Maple Leaf Foods offer to buy assets of hog producer Puratone Corp. for $42 million is an attempt to ward off potential supply issues at its Brandon slaughter plant. Maple Leaf’s offer includes Puratone’s livestock, facilities and interests in some joint ventures. “This acquisition will ensure a consistent supply of hogs to our processing facility in Brandon, which is an integral supplier to our value added prepared meats and pork business,” said Maple Leaf president Michael McCain. The move came after widespread speculation that the Toronto-based company would bid after its competitor Olymel offered $65.25 million for Big Sky Farms. SEE PURATONE BID, PAGE 2
WILLIAM DEKAY PHOTO
Farmers will pay more in fees if CGC fare changes proceed Fee hike | Canadian Grain Commission looks to make up funds as Ottawa reduces support BY BRIAN CROSS SASKATOON NEWSROOM
Proposed fee changes at the Canadian Grain Commission will cost the grain industry about an additional $20 million per year by 2018, a cost that will ultimately be borne by farmers, according to industry observers. The grain commission released a new fee schedule Nov. 1, outlining services and proposed fees. Grain growers, farm groups and others will have until Nov. 30 to weigh in on the proposed fee changes, which would be introduced gradually over a five-year
period beginning next August. The new fees, if implemented, will be part of a leaner grain commission that will collect more money from the industry and less from government. The proposed increases are expected to boost the commission’s annual user fee revenues by $11 million in 2013-14, another $6 million in 201415 and an additional $1 million a year between 2015 and 2018. If the fee increases proceed, the money collected through user fees would increase to $48 million in the 2013-14 fiscal year, up from an estimated $37.6 million a year now.
NOVEMBER 8, 2012 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4
CGC PROPOSED FARE SCHEDULE CHANGES Notable changes include: • Outward inspections of ships would increase to $1.60 per tonne in 201314 from 25 to 51 cents per tonne
• Submitted grain sample grading would increase to roughly $47 per unofficial sample, up from about $15 to $25 per sample
• Outward inspections of rail cars, trucks and containers would increase to $143.99 per inspection in 2013-14 from $29
• Sampling services would increase to roughly $70 per sample from $31
• Producer car applications would increase to $26.50 per car from $20 When fully implemented by late 2018, user fee revenues would account for more than $57 million per year in an annual grain commission budget of about $62.65 million. Based on those figures, user fees
• Analytical testing services would increase to a range of $35 to $1,609 per analysis from a range of $5 to $395 per analysis. would cover roughly 91 percent of the CGC’s total spending in 2017-18, up from less than 50 percent in the current fiscal year. SEE FARMERS WILL PAY MORE, PAGE 2
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GRAIN HANDLING | SERVICE FEES
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The Western Producer is published in Saskatoon by Western Producer Publications, which is owned by GVIC Communications Corp. Publications Mail Agreement No. 40069240; Registration No. 10676
Ron Basset of Bruno, Sask., unloads his peas at the Richardson Pioneer elevator in Dixon, Sask., on Oct. 31. |