Farm cash receipts rose to $74 million in 1997, up marginally from $73 million in 1996, led by gains in hogs, lambs, cattle and floriculture. Accounting for more than half of cash receipts, dairy and poultry production remained around historical highs last year, buoyed by continued marketing efforts (e.g., School Milk Program) and product recognition (e.g., Country Ribbon).
Last year witnessed further efforts in the industry to restructure and consolidate. An agreement was reached between Integrated Poultry Limited (IPL), Newfoundland Farm Products Corp. (NFPC) and the Provincial Government for the divestiture of NFPC's chicken plant in St. John's. This divestiture provides IPL, a local consortium of chicken producers, with the ability to vertically integrate primary production with processing, thus increasing its competitiveness.
The industry continues to focus on product development, diversification and niche markets. For example, competitive advantages have already been recognized for the potential production of cultivated cranberries and for the utilization of the Province's vast supply of peatland.
OUTLOOK
Investment in the industry is expected to increase as IPL plans to invest more than $17 million in 1998 as part of an ongoing effort to expand productive capacity and modernize existing operations. Farm cash receipts in 1998 are expected to be on par with last year. Future efforts in the industry will be focused on improving processing technology, product quality, developing new agrifood products and diversification into new agricultural commodities.
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