Wednesday, October 7, 2009
'The Greenbelt disaster is a response by a group of large grape growers who
> have had to compete with imported grapes, and the imported grapes are
> significantly cheaper. The issue is simple, we as grape growers, have a
> fixed amount of expense in growing grapes. This is related to both amount of
> tonnes per acre we can grow, the region, climate and the industry
> regulations we follow. The cellared in Canada is not the problem, but a
> consequence to the main issue. The Ontario governments are interested in
> money from the industry as a whole, and through choices made as far back as
> 20 years ago have created a situation in which grape growers are most likely
> finished in Ontario. One number that I have been told through the Grape
> growers of Ontario ( GGO ) is that the Governments take over $ 16,000.00 per
> acre out of the industry in total, this is ten fold more than a average
> grower, as well, much more than a winery could make. Unfortunately the GGO
> has said that if the cellared in Canada was raised to 50 % there would still
> be a surplus in grapes. I will list for you some of the main issues in my
> opinion.
> * The main area of growth is really only forecasted from VQA sales. The VQA
> wineries have all the grapes they need, due to regulations on number of
> acres required to open a winery.
> * the dependence on cheap imported wines have shaped the industry in a
> semi-permanent way and these wines account for the majority of profit and
> taxes in the industry. These blended wines account for as much as 80% of the
> grapes purchased in Niagara, grape growers have to be very careful not to
> bite the hand that feeds them.
> * Government takes way too much money out of the system too allow anyone to
> make a reasonable profit on 100% Ontario wines.
> * the distribution system is the not working for VQA wines, the governments
> own study in 2005, I believe, broke it down correctly the issues but was
> shelved.
> * the cost is too high to grow grapes that can compete with other countries
> wines sold at the LCBO, the price a grower gets is less than cost of
> production for those VQA grapes.
> * Ontario must be a small niche market for our own wines, but due to taxes
> the industry is having problems making money..As well the LCBO has huge
> purchase power and gets great deals on good wine, which is heavily
> subsidized.
> * wineries and the GGO have had an adversarial relationship at best and now
> see the potential end of the GGO and are glad to take the organization down
> one grower at a time.
> *Even if we could sell all our fruit the new price for grapes is break even.
> This has been accomplish by imposing tonnage restrictions, which for quality
> wine makes sense but the price for gapes is just too low.
> * BC is doing well because they developed a market with a buy BC first
> policy and allowed VQA stores as required to sell all their wines. Ontario
> is reluctant to give up the LCBO monopoly.
> * the way to get the industry working together is to impose a buy Ontario
> first policy. The wineries would not like this but it would get everyone
> working together.
>
> For the Greenbelt relationship to this problem is simple. There are 5
> pillars in the act , first is agriculture and fourth is communities. The act
> recognizes the relationship between the economy and the community, both are
> grape and tender fruit based. The last 5 years has seen the demises of the
> apples, peaches and juice grapes. As the agricultural economy within the
> greenbelt is reduced sector by sector the local communities will start to
> fail or transform to GTA satellites. If the Greenbelt was set up to protect
> agriculture and local agricultural communities, it is a disaster. The last
> nail in the coffin would be the wine grape growers. Napa once was a
> collection of local farmers and wineries, they were greenbelted and quickly
> transformed to corporate farms and no real farm communities but tourist
> centres with much lower paying and quality jobs. The act restricts what we
> could do with our land, but the region and municipality have been doing that
> for years. Where the problem is coming for the municipalities is they can't
> tax enough if expansion is stopped. I bought my farm with hopes of becoming
> a small winery, today that is impossible due to unsurpassable property taxes
> from day one. Now I am restricted as a grape grower with no market. The
> cellared in Canada issue would help some growers and is an embarrassment to
> our industry to mislead people into believing they are buying a product of
> Canada when they are not.
> There is much more but that is a quick over view.'
>anonymous
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