WINNIPEG – Ellis Penner and his son Terry have been waiting years for the right time for Terry to buy more shares in the family turkey farm.
Terry, 33, would like to take over the farm, located near Steinbach in south-central Manitoba. But Ellis said they keep delaying decisions because of the uncertainty surrounding the way poultry is marketed in Canada.
Last week, Ellis said he told his son: “Do you want to farm or don’t you? There’s no security. That’s how we feel at this stage.”
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During the last few years, Penner said other Manitoba turkey producers have backed out of the business because of threats to the supply management system, which regulates supplies, including imports, and prices in the industry.
“We find there are some people retiring and their sons are preferring other areas of employment or business…and they are just closing down their doors,” he said.
Penner was at a news conference here last week with other farm leaders from supply-managed commodities. Dairy, egg and poultry producers are concerned about the recent U.S. trade challenge to Canadian tariffs on their products.
“Legally, we’re right,” Penner said, referring to the tariffs that have the effect of keeping U.S. milk, poultry and eggs out of Canadian grocery stores.
“But legalities don’t always win, and we’ve got so much to lose.”
The Americans, however, differ. They say Canada is violating the North American Free Trade Agreement by not reducing its tariffs as outlined in the deal.
Some exceptions
Canada contends there are exceptions in NAFTA that allow the three NAFTA partners, Canada, U.S. and Mexico, to retain certain rights under the World Trade Organization rules. The WTO rules call for a more gradual decline in tariff rates.
Manitoba could lose more than 6,000 jobs in agriculture and food processing if the U.S. wins its trade challenge, according to a recent study done by economic forecasters Informetrica Ltd.
The chair of Dairy Farmers of Canada said producers won’t rest easy until the dispute has been resolved.
“Whenever you go into a panel process, there’s always the outside risk that you could lose,” John Core said. “And we want everyone in Canada to understand…what will happen in the Canadian economy if we lose.”
Lloyd Sandercock, chair of the Canadian Chicken Marketing Agency, said producers are digging in their heels against the trade challenge.
“We’ve drawn a line in the snow these days and we’re going to defend what we believe and know is right.”
