B— j
■Lancaster Farming, Saturday, November 1,1969
Overproduction May Bring
Falling Egg Prices, UEP Says
The spectic of overproduction U.E P. recounted the disastrous tices that led to the egg market
and falling prices may again be conditions that led to the un- crash of two years ago, according
looming on the horizon of egg stable cyclic swings of the egg to U.E P. Because prices have
producers. A recent letter from market during the past five again risen, pullet placements
United Egg Producers to its yeais: are also beginning to rise As of
members warns of dangers ahead ** For t h e twelve months ending July 1, 1969, total pullet hatch
if the current tiend of inci casing fn May 1965, we produced the mgs for the preceding 12 months
pullet placements, and the re- lowest egg-type pullet hatches had risen to 260 million chicks,
suiting overpioduction of eggs, m recent US. history; 241,924,- As U.E P. told its producer
is allowed to continue. 000 pullet chicks. This cutdown members. “The red flag is again
was due to low egg prices. New waving.”
York top large eggs averaged if Wl id market swings aie to be
36c in 1964 But because chick avo ided in the future, UE P
placements was so low, the result said> producers must’ break out
was very high prices in late 1965 0 f fb e unfortunate cycle which
and all of ’66 . . . low dictates that pullet placement
hatch point in May 1965, the 12- j s CU f back when egg prices aie
month total increased every falling and inci eased when prices
month (except one) over 22 a ie rising only to cause anoth
straight months until it leached er s er i o us depression in egg
a high of 290,425,000 pullets in prices. Such short-sighted prac-
March 1967 an increase of t lt . 2S( uE P. says, tend to keep
twenty percent. The result was market in an unstable con
disastious. dition and work to the detriment
“By the first half of 1968,” of all egg producers The indus-
UE P. continued, “prices had try’s experience with oversupply
fallen to 31.1 c, and the net for in the face of inelastic demand,
almost all producers had fallen U.E.P. told its members, has the
to about 20c per dozen. Many effect of forcing down the price
producers were forced into bank- of all eggs “until financial ruin
ruptcy and those who were not causes ■spough selling to bring
have yet to make up their losses * the back into line with
from the 1967-68 defeat.” denim”
There are signs now that pro- U.E.P. also warned its pro
ducers are repeating the prac- ducer-members of the dangers
According to UE P, “produc
tion judgements being made by
egg producers now will deter
mine profit or loss foi the next
eighteen months (Match 1970
through September 1971) If oui
andustij blindly disrcgaids good
business methods now as it
has done in the pas; we aie
in for the greatest price depres
sion since 1942
The ke\ to a rational balance
between egg prodiution and the
demands of the market. U EP.
sajs, is a sjstematic control of
egg-type pullet hatches and pul
let placement Layers, unlike the
machines of a manufacturer, can
not be held idle while the market
is being stablized-
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of force-molting, a practice that
artificially increaiea the total of
egg-producing layers. "It is this
combination of record numbers
mol'cd,” U.E.P. asserts, "plus
the staggering 12-month total
pullet placements, which brings
the greatest-ever threat to egg
prices.”
What course should producers
follow during the danger period
ahead? United Egg Producers
suggested to its members that
they consider the practices of
another producer “an enligh
tened man” who 's a principal
owner in a major, family-owned
egg operation . . . “This man,”
Instead
gas delivery?
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U.E.P. says, "Is practicing what
we are preaching. His pullet
placements have been reduced
from a 816,700 level in 1067 to
less than 700,000 in 1960.”
Safety with Chemicals
Keeping garden and house
hold chemicals under lock and
key is the only way to keep
toddlers and young childien
safe from Poisons, according to
Delbert L. Bierlein, Penn State
Extension entomologist and pes
ticides coordinator. A soparte
cupboard locked with a combin
ation padlock is ideal for stor
age.