THURSDAY, DECEMBER 13, 2012
VOL. 90 | NO.50 | $4.25
Ag Summit | P6
SERVING WESTERN CANADIAN FARM FAMILIES SINCE 1923
WWW.PRODUCER.COM
TIME FOR SOME FROSTED CEREALS
TRADE | COOL
WTO issues deadline on U.S. labelling
Farmers ponder options
Few expect the Americans to comply in time BY BARRY WILSON & BARBARA DUCKWORTH
Puratone | Farmers seek $1 million in unsecured losses
OTTAWA, CALGARY BUREAUS
A World Trade Organization arbitrator has ordered the United States to change its country-of-origin labelling rules by May 23, or else. However, since few expect the Americans to comply in time, what “or else” means becomes a key question. The likely outcome is months more of WTO compliance hearings after May 23. More than a year ago, a WTO trade dispute panel initiated by Canada with the support of 14 other countries, ruled that COOL was a protectionist policy and not consumer education as the U.S. claimed. With no movement on the issue from the United States, Canada requested arbitration and on Dec. 4, the WTO ordered May 23 implementation of changes.
BY ROBERT ARNASON BRANDON BUREAU
It’s ironic to Chris Nordal that the Bank of Montreal announced quarterly profits of $1.1 billion Dec. 4. The irony would be comical if the farmer from Arborg, Man., wasn’t out $62,800 at the same time that BMO increased its quarterly net income 41 percent. In September, Nordal delivered $62,800 worth of winter wheat to Puratone, just before the Manitoba hog production company entered creditor protection. In November, Maple Leaf Foods bought Puratone for $42 million, but the hog company owes $86 million to secured creditors, including BMO and Farm Credit Canada. On Dec. 3, Nordal learned at a Keystone Agricultural Producers meeting in Arborg that neither Puratone nor Maple Leaf will compensate farmers who delivered grain to Puratone but never received payment. Meanwhile, BMO announced Dec. 4 that its fourth quarter net income increased 41 percent, relative to 2011. “BMO reported $1.1 billion (profits) in the last quarter,” Nordal said. “I don’t know, they’re the secured creditors and we’re unsecured…. On our farm, this (loss of $62,800) represents 20 percent of the gross farm income.” It’s unlikely he’ll ever recoup his losses, but Nordal has joined 20 other Manitoba farmers who delivered grain t o Pu rat on e bu t hav e n ’ t received payment. SEE MANITOBA FARMERS, PAGE 2
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SEE WTO ISSUES DEADLINE, PAGE 3
DECEMBER 13, 2012 Return undeliverable Canadian addresses to: Box 2500, Saskatoon, SK. S7K 2C4
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