March 2008 Archives

The Canadian beef industry functions in a global market, exporting 50 percent of its beef and cattle production, 80 percent of which goes to the United States (CBEF Website). As a global market player, beef producers must contend with global factors that are often beyond their control. World feedstock shortages, growing demand for grain to make ethanol, rising oil prices and the rise in the Canadian dollar relative to the US dollar have negatively affected Canada's competitive position in the beef industry. If Canada is to remain competitive in the global beef industry what factors are within producers' control to provide a new competitive edge to Canadian beef? Will a future competitive advantage lie in achieving further production cost efficiencies in a commodity market, or can the Canadian industry turn to further product differentiation as the future basis for its competitive advantage?

This past week the agricultural economics profession lost one of its preeminent members - Dr. Bruce Gardner, Distinguished University Professor in the Department of Agricultural and Resource Economics, University of Maryland. Bruce received his B.S. in Agricultural Science and Economics in 1964 from the University of Illinois, and his PhD in Economics from the University of Chicago in 1968. Bruce was one of the most cited and influential agricultural economists of the last quarter century, not only advising governments on policy but also developing methods for policy analysis.

In the January 10^th Illative Blog posting, recent events in two of Saskatchewan's farm organizations were considered and several inferences were made about the future of farm organizations in the seeming absence of good governance practices. While the events of APAS and SSGA were highlighted, poor performance and weak governance are not limited to agricultural organizations. One example is the dismissal of the CEO and subsequent staff unrest at Wanuskewin Heritage Park earlier this year (Wanuskewin Board Votes to Dismiss CEO, Wanuskewin Fallout Continues). The fact that there are other non-profit organizations going through similar turmoil suggests that perhaps there are underlying issues related to governance of these organizations.

Recent news stories describe a building boom going on in small-town Saskatchewan and soaring world grain prices helping some farmers experience the best prices for wheat in their careers. This is a welcome relief from last year when the big rural news story was the closure of twenty-four schools. Not every small town is experiencing the population boom that comes from being within a reasonable commuting distance to a large centre. A different approach is required to revitalize these communities. Eco-tourism has been one approach taken. The town of Hafford, located one hour northeast of Saskatoon off the Yellowhead highway (Hwy 16), used its community spirit or social capital to build its eco-tourism industry. The experience at Hafford serves as a lesson in the importance of social and economic capital.