Small Efficient Poultrymen Have Profitable Future
A profitable future exists
for efficient egg producers
with flocks of 30,000 hens or
less, says Dr. Anthony P.
Stemberger, professor of
agricultural economics at
the Pennsylvania State
University. Despite the trend
toward bigness, such egg
laying operations should be
able to compete over the
next 10 to 15 years with
enterprises of 50,000 or more
hens, he claims.
One justification for 30,000
hens or less, Stemberger
stated, is that small but well
run egg farms, using family
labor, should be able to hold
their own in competition with
large firms using hired
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LARRY HIESTAND
Sales Representative
Phone 717-392-9062 (Home) 717-273-7394
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labor. His comments were
featured at a national
meeting of' the American
Farm Bureau Federation in
Atlantic City, N.J.
The owner of small flocks
is apt to do a better, more
conscientious job of flock
management than hired
labor, thus reducing
production costs, he af
firmed.
Equally effective in the
future could be the use of
marketing firms, either
cooperatives or privately
owned, selling eggs for a
number of small and in
dependent producers.
“In the egg industry, the
operations we consider large
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have precious little market
power although they may
have investment control and
quality control,” Stem
berger observed.
‘‘Control of investment
and quality may be exer
cised by a business
organization that does not
necessarily own all its
productive assets. In other
words, it is entirely possible
to have an organization that
includes small poultrymen
and still maintain control
over investment, quality,
and market power.”
Direct marketing of eggs
in communities of 25,000
people or less should
FHA has New
Guarantee
Loan Program
Penrose Hallowell, State
Director of the Farmers
Home Administration, has
announced me im
plementation of\ a new
guarantee loan program for
lenders who make loans to
farmers. The program is
intended to provide broader
financing by local sources.
“The advancements in
farm technology, machinery
and size of operations,” said
Hallowell, “has generated
an increasing need for
fanner credit. Some of this
credit not met by con
ventional means may be
advanced by local bankers
with the Farmers Home
Administration guarantee.”
According to Hallowell,
the maximum guarantee is
Street Address & R.D.
City, State and Zip Code
likewise be profitable for
owners of small flocks, the
Penn State economist
claimed. He described
studies in Pennsylvania of
such sales to local chain
stores, the small and locally
owned superettes, motels,
restaurants, hospitals, etc.
In general, these sales
outlets do not handle large
volumes of eggs per day.
Thus, it’s fairly inconvenient
and expensive to be served
by large dealers located in
metropolitan areas.
Such small towns and
cities also offer good op
portunities for direct
doorstep delivery of eggs,
Stemberger pointed out.
$lOO,OOO on real estate and
$50,000 on livestock and
machinery. Application for
such loans will be made at
any of the Fanners Home
Administration field offices
or directly at the local credit
source. The loans will be
processed and serviced by
the local lender.
During the first 6 months
of this fiscal year over
$4,000,000 was loaned to
Pennsylvania farmers
through the regular loan
program of the Farmers
Home Administration. These
loans were made for
livestock, machinery, farm
improvement and con
solidation of debts.
Hallowell stated that the
remaining allotment of funds
to June 30 is $5,000,000. This
includes funds for youth
loans involved with in
come-producing farm and
non-farm projects.
iStSiStSiS'iSiSiSiStS
I. H. BRUBAKER, Inc.
GOOD USED FARM MACHINERY
HAY MACHINES
N.H Super 68 Baler
AC. 444 Baler
J.D. Baler w-Kicker
I H. 46 Baler
1 H. 816 Mower Conditioner
N H. 78 Baler
Cunningham Cut-ditioner
COMBINES
I H 205 S P Combine w-cab
Corn Head, 13 ft Gram Head
2-Massey Harris 82 Combines
HARVESTERS
NH 717 Harvester w-Corn Head and
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L. H. Brubaker, Inc.
350 Strasburg Pike
Lancaster Farming, Saturday, Feb. 9,1974
Generally speaking, traffic
volume in small com
munities is low and there is
little traffic congestion to
hinder doorstep delivery.
These conditions offer a
lucrative local trade to the
small flock owner serving
door-to-door customers and
small stores directly, he
suggested.
‘‘The key words for suc
cess by the small flock owner
are personal service and
quality. A small producer
offering high quality and
direct personal service can
find himself pretty much in
possession of a local market
where customer loyalties are
strong, giving him a com
petitive advantage against
outside competitors,” he
stated.
He indicated the small
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Manufacturers of Kafstals, Veal Stalls, Bale Wagons
Has a Large Selection of
Ph. 397-5179
Hock owner may also have a
cost advantage in marketing
eggs. Operating on a small
scale, he docs not need a
large investment in
buildings and equlmpment
and pays no high rent.
Equipment is available to
process small volumes of
eggs cheaply.
Owners of small egg
laying operations can
usually get part time labor at
lower rates than operators of
large commercial firms,
Stemberger observed.
Furthermore, part time
labor lowers the cost of
fringe benefits such as
vacations. And in many
cases, packaging materials
can be reused. Such
operations can have lower
processing costs per case of
eggs than large operations.
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Lancaster, Pa