— Lancaster Farming. Saturday. June 20.1970
4
On Stopping Egg Busts
Why do egg busts occur 9
The egg market is a classic example
of what happens in a free enterprise system
when supply of a product fluctuates wildly
in the face or an inelastic or stable demand.
When supply is low, prices arc high; when
supply is high, prices are low.
Authorities agree that irregardless of
the supply, the demand for eggs at least
under present marketing techniques re
mains fairly constant. Therefore, only a
slight change in egg supply in one direction
will send the price of eggs sharply in th«
opposite direction.
The UEP, in its projections, cites a four
to one relationship between egg production
volume and price. This means that a
change in supply of eggs causes a change
lour times greater, percentage-wise, in
price m the opposite direction.
According to some observers, however,
the UEP is conservativ e in its four to one
relationship. What actually happens in a
market bust, they say, is that the bottom
literally falls out of the market, the weak
est sellers set the pace; since traditionally
in a glut the weakest sellers haven’t reallj
had a market, the bottom becomes a give
away situation.
What has always happened in the egg
narket is that after e\ery bust, in which
a large number of producers are weeded
out, wiped out may be more precise, a
oenod of lower egg supply and resulting
nigh prices follows. High egg prices imme
diately entice new and inexperienced pro-
ducers and existing producers
their production.
The resulting flood of new eggs, which
generally has not really been more than an
overall five per cent increase, causes egg
prices to plummet below' the cost of produc
tion. When enough producers cut back or
get out to allow the supply pressure to ease,
egg pnecs go up again.
So it goes, boom and bust, boom and
bust.
Officials Look the Other Way
What You Don't Know Can Be Fatal
While the government has a huge ap
paratus supposedly for supplvmg informa
tion about U S farming, most of the data vv e
get is completely out of touch with what the
farmer and the nation want and need to
know.
The present egg industry scare on o\ ei -
production is a shining example
While United Egg Produce:s has been
flashing warning signals tor months in
cluding advertisements in color, about an
impending egg market bust, v irtualiv ah the
data we ha\e received from state and
federal officials w'ould indicate business as
usual.
While all the knowledgeable egg pro
ducers and allied industrymen we have
talked to now see the egg bust as v irtually
inevitable within weeks or months un
less unprecedented corrective action is
taken state and federal officials who are
paid to inform and assist the farmer have
said almost nothing.
The situation spells out a warning loud
LANCASTER FARMING
Lancaster County’s Own Farm Weekly
P. 0 Box 266 - Lititz, Pa 17543
Office- 22 E. Mam St.. Lititz, Pa 17543
Phone: Lancaster 394 3047 or Lititz 626-2191
Robert G. Campbell. AdveiUsing Director
Zane Wilson, Managing Editor
Subscription price $2 per yeai in Lancaster
County, S 3 elsewhei e
Established No\ ember 4,1955
Published e\ ery Satuidaj b% Lancaster
Fanning. Lititz Pa
Second Class Postage paid at Lititz Pa
17543
Member of Newspaper Farm Editors Assn
Pa. Newspaper Publishers Association, and
National New spaper Association
But what the egg industry is facing to
day is not a small or normal egg bust, but
a big. record, huge supply increase on the
up side.
Most authorities are absolutely con
\inced that if massive corrective action is
not taken industry w ide on a scale proposed
by the UEP (see page 1), the industry will
inevitably have the most violent and pro
longer downturn in its history. For those
who remember 1967, industry leaders say
we are on the doorstep of a bust that will
make 1967 look like good times.
Although it is late in the game and the
egg industry has never before mobilized to
stop such a catastrophe, industry leaders
are assuring us that it can and will be done.
We wish them all the luck in the world
and certainly advise our readers to listen
to their advice very carefully; but we
note that not just local poultrymen. but egg
producers and allied industrymen across
the nation must cooperate. Can it be done?
We’re skeptical. We don’t see how the
industry at the last minute can find the
courage to change without once more tast
ing the bitter fruits of financial loss caused
by prices low er than the cost of production.
But probably the work done now will not
be forgotten when the disaster begins and
the work now may cause a much quicker
recovery than would otherwise be possible.
Looking beyond this situation, we see
some real hope that the industry is mobiliz
ing to avoid similar situations in the fu
ture.
We think this effort should and will in
clude not only the stabalization of produc
tion but also major efforts in the market
place to de\elop and standardize new
means of making eggs attractive to buy
ers, new techniques for controlling the rate
of consumption.
increase
In the long run, we think that only a
significant change in the_ violent relation
ship between egg supply and demand can
stop the boom and bust egg market cycles
and clear for egg producers. It’s still a dog
eat dog world in the egg business insofar
as state and federal government officials
are concerned.
These officials have indicated they will
continue to go through the motions of pro-
ducing relatively meaningless and unre
lated material, but they won't tabulate, de
fine and interpret that material in such a
way that egg producers can understand
what’s going on in the business
As a result, poultrymen must continue,
as in the past, to rely on their own resources
to save themselves.
Unfortunately, in the past egg men
haven't done so well, the industry has gone
through one violent boom and bust period
after another; as a result, the egg industry
can probably claim the distinction of hav
ing produced more bankruptcies than just
about any other single farm enterprise.
But despite these violent price swings,
and 1970 will probably show a shift from
record highs to record lows, state and fed
eral officialdom has not made any move
toward supplying the type of information
that can avert such disastrous price fluc
tuations.
And we are convinced that the price
swings stem largely from producer ignor
ance resulting from a basic information
void. We are com meed that producers can
and will make intelligent decisions that
w ill keep the market relatively stable if
they are guen adequate, reliable informa
tion on which to base production decisions.
What producers get. however, are year
ly figures on what percentage they should
increase production nationally and monthly
figures on how much they actually have
been increasing production.
While egg t>pe chick hatch, the advance
(Continued on Page 11)
To Practice Sanitation
The need for strict In estock
sanitation practices is always
present but especially impor
tant at this time with an out
break of hog cholera in Chester
County. This highly contagious
disease requires very strict
quarantine regulations and
careful management to stop its
spread Local producers are
cautioned about their source of
feeder pigs, and to be very
careful about bx-inging the in
fection to the home held
Eveiyone should cooperate to
eradicate this dreaded disease
of hogs.
To Seed Cover Crop
Com growers who have not
used atrazine as a weed kill
er, and want to maintain the
organic matter in their soil, may
want to broadcast lyegrass or
field bromegrass immediately
I’M ONLY ONE
Lesson for June 21,1970
kuckgrtunal Scripture; Romans 12 through
13.
Devotional Reading: Romans 12.3-12.
You are a soldier in the United
States Army stationed in West
ern Germany. You and seventy
two other American soldiers
comprise a convoy of tracks mak
troop movement
:adt in West Ger
many through
East Germany a
long the autobahn
to West Berlin.
Usually the trip
is uneventful ex
cept for periodic
check-points a
long the way.
Lately, how-
_ ever, there has
Rev. Althouse ]j Gen some mount
ing tension in Berlin and there
is some growing apprehension
among your officers that the So
viets may retaliate with some
petty irritations on the autobahns.
You hope that if the communists
decide to needle the American
forces again they’ll pick a differ
ent convoy with which to do it.
The rut people get in Overcome evil with good
says, “Marienborn checkpoint.”
Fifteen minutes at the most and nnc! ln.? LI h fl+ PP f S p '
you should be on your way once L. «t»rfJS*
Sf SToonw? iTL'tS Klfer e ,h ' tot
let us pass until we fall out and or more na '
line up to be counted.” !?« «„ ™ c , an
You know what that means... *s°
possibly a long wait. It is U.S. f°
policy to refuse to get out of the refntb LLt S?® tak *
trucks for counting. You don’t • I “° nljr one v
really understand why, but that’s ho y
thp wav if i«3 Vnn and fbp A nn Cflll do, SIS Paul puts it, to
w 3 ‘LtV«S.“SS.VS «•“ ”«■ «**" -
Until SOnieOne backs down. You [Based on outlines copyrighted by th*
chuckle, half in disgust and half £ ,v,s, °n of Chr.st.cn Education, National
an amusement, when jou consider OT VJi* 'V.«
that neither you nor the Soviet s * rvic »)
soldiers standing guard- really
understand why you can’t get
out of the truck and why it is
just-as important to 'theili to have -'„ • *
NOW IS
THE TIME...
By Max Smith
Lancaster County Agent
after llieir last cultivation. On
fields that will be in corn for
several consecutive years the
cover ci'op to plow down next
spring is good soil and water
management. Most of the herbi
cides used this spring on corn,
other than atrazine, will permit
a cover crop to grow this fall.
To Operate Combines Properly
Winter barley and wheat har
vest time is near and the com
bines will be serviced and ready
to go In many cases the ma
chine is in excellent condition
but the operator is in too big a
hurry to allow it to perform
properly, as a result, too much
of the giain is thrown out with
the straw and we get volunteer
growth this fall. In addition,
tough grain makes the job more
difficult and requires a slower
pace “Haste makes Waste” in
this case and reduces the re
turn per acre.
tu do so. It’s just part of the
)ld War rut people get into,
iu decide.
The first two hours are not too
id, but after three hours of
tog in the cramped trucks,
•u and your comrades begin to
t irritable. It is with gratitude,
ten, that you hear the sergeant
ill your name to deliver a mes
ige to the C.O. in one of the
trucks up the line. This means an
opportunity to get some fresh air
and stretch your legs.
The dangerous sparks
As you stand waiting for a
reply, you notice a Soviet guard
with a tommygun. You don’t look
at him and he doesn’t look at
you. It seems best that way. The
only sound is a chilly wind that
whistles around you and the
scrape of the guard’s boots.
Then it happens! A sudden
gust of wind lifts your fatigue
cap off your head and deposits
it in the dust . . . right in the
path of the guard. You extend
your hand forward in a gesture,
but it is too late and the boot
crushes the hat into the dust.
“Hey,” you shout and instinctive
ly rush toward him. He stops and
turns toward you inquiringly, his
foot still resting upon your hat.
“You’re on my hat!” you shout.
“Da?” he replies as if he does
not understand you.
There seems to be a slight
trace of amusement playing at
the corners of his mouth. Did he
do it on purpose, you ask your
self? Doesn’t he see it? You be
gin to feel an overpowering urge
to shove him and get him off
your hat. “What’s going on
here?” a sharp voice asks behind
you and you turn to see your
C.O. and the Soviet commander.