Right Hon. J. G. Gardiner (Minister of Agriculture):

Mr. Speaker, as recently

announced in parliament, the federal government has agreed to establish a floor price on cattle until the United States embargo on Canadian cattle and beef shipments is removed. This price, until July, will be on the basis of $25 per hundredweight for good steers at Toronto, Montreal and Moncton; $23.35 at Winnipeg; $22.80 at Saskatoon; $22.55 at Edmonton and Calgary, and $23.40 at Vancouver. At the beginning of June a floor price for the month of July will be announced, and at the beginning of each month thereafter the floor price for the next month will be announced in order that the producer may know what the floor price on his cattle will be for the next two months.

In 1951 Canada exported about 400,000 head of cattle, either as cattle or beef, for which no outside market is at present available although it is hoped that domestic consumption will increase with the lower consumer prices for beef. If the market is oversupplied, it means the price to producers will remain at the floor. With the fixing of a floor price, it will be possible for the producer to market his cattle in an orderly manner with only finished cattle reaching the market, and if this is done the producer may expect to continue to sell all his cattle without undue market gluts, and may from time to time receive prices higher than the floor.

There are various reasons why it will be in the best interests of the cattle industry to delay the marketing of cattle while the

United States embargo is still in effect, and attention is drawn specifically to the following:

1. When the American embargo is lifted, that market will again be available.

2. Orderly marketing will relieve market congestion and undue pressure on prices received by farmers.

3. The establishment of a floor price means the producer will always be in a position to obtain a minimum price for the particular grade of animals which he has to market until such time as the United States embargo is lifted. It is possible that the extra feeding, with the resulting weight gain, may improve the grade and therefore increase returns to the producer.

4. During the pasture season, cattle make their most economical gains on grass, and this is available on most farms and also in community pastures in western Canada.

Mr. Charlton:

With reference to the floor price on beef, can the minister say whether or not the government has set any differential for the grades, or is that being left to the packers?

Mr. Gardiner:

No, the prices for the different grades are related to the $25.

Mr. Quelch:

Will the minister say whether the floor price is in operation now, or is it dependent upon the removal of all provincial embargoes?

Mr. Gardiner:

The floor price is in operation now.

Mr. Fulford:

In view of the fact that floor prices have been set for beef cattle, is the minister in a position to state whether any consideration is being given to stabilizing the market for dairy farmers?

Mr. Gardiner:

There is a floor price under butter, of course, and, as I said yesterday, there is a legalized position in Ontario in relation to cheese. Since most of the cheese is made in Ontario, the cheese position is quite well governed by that.

Mr. Fulton:

May I ask a supplementary question with respect to this grading which will be based on the floor price? Will there be any close supervision by the government of the grading methods as a result of the institution of the floor price policy? The minister will appreciate that it means a great deal to a farmer how these grades are applied.

Livestock

Unless there is some supervision, with a floor price of $23.40 in Vancouver a farmer may get a price far below that for the cattle marketed.

Mr. Gardiner:

There is always supervision when there is a floor price. I can best illustrate that by saying it is only a few weeks ago that it was found that a floor price was established on hogs. Immediately following that it was found that at certain places a price of 25 cents less per hundred pounds was being paid. This was immediately checked and in a very short time it was levelled out at 26 cents. The same kind of supervision will be applied to cattle as has been applied to hogs.

Mr. Cardiff:

Will the minister state whether the 25 cents a pound is for red brand beef?

Mr. Gardiner:

That is for good steers; choice is above that, and there are red and blue in the choice.