FNA-STAG Supports “Farmers’ Share” Study

FNA-STAG congratulates the Agricultural Producers Association of Saskatchewan (APAS), Keystone
Agricultural Producers of Manitoba (KAP) and the Wild Rose Agricultural Producers of Alberta
(WRAP) in the release of their 2010 results from the “Farmers Share of the Cost of Food Study”.
Bob Friesen, FNA-STAG CEO, says, “This is a great example of the kind of work that general farm
organizations are doing for farmers. In a world where hunger and perceived food shortages is being
linked to farmers, it’s important to identify farmers’ position in the food chain and where the consumer
food dollar is going”.
This study is especially important recently, as some grain prices are rising and people become
concerned over the cost of food. “Even if a seven dollar bushel of wheat doubles, the actual cost
increase in a loaf of bread from that wheat is only pennies.” says Friesen. “So if the price increase in
a loaf of bread is more than a few pennies, the consumer needs to ask where that extra margin is
going.
There’s no question that the farmers share of the market dollar is low, but it is also undisputed that
the farmers share of the profitable part of the market dollar is almost non-existent. Currently, about
86% of a farmers’ revenue goes to paying input costs. Even if the farmgate price increases, there’s
no benefit if input costs increase by a similar margin.
Some input prices have already begun increasing in response to the recent price strength of grains
and oilseeds. Because farmers are price-takers in the marketplace, reducing that cost by working
together is about the only way for farmers to increase their share of the profitable piece of the market
dollar.
FNA-STAG encourages farm organizations to continue raising awareness about the farmers’ share of
the food dollar as farmers look to improve their farm profitability by improving their return from what
they sell and reducing the costs of what they buy.
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Farmers of North America Strategic Agriculture Institute (FNA-STAG) is a not-for-profit organization
with the single mission of “Improving Farm Profitability.”
For more information contact:
Bob Friesen, CEO: (613) 230-2222 / (613) 852-9711