incaster Farming, Saturday, July 22,1978 —Lai 20 O tsdbiiSLA "tv* -hhsLS EcU£&u Egg producers treated Dear Editor; The egg business has always been a “boom or bust” enterprise for the farmer. Recently, we have passed through the bottom of the “bust” cycle. For example, it now cost the average farmer around 40 to 50 cents to produce a dozen eggs. He has been receiving about 35 cents per dozen; a net loss of nearly 10 cents per dozen eggs produced. It is during these “bust” phases of the that egg farmers are frequently questioning the sanity of their decision to venture into this business. Furthermore, it is during this correction phase, that some of the more frustrating problems of the business tend to surface. There are many problems to be faced in this business, but the biggest problem and our weakest link, is the marketing outlets currently , available to the farmer- . producer. It’s not that the outlets aren’t available for his eggs; its just that no one is looking out for his interest when it comes to egg pricing, both in what he receives and in what tne consumer pays. Today, I would guess that about 90 per cent of the gg farmers in the Pennsylvania , and Maryland area sell or ■ “contract” their eggs to 1 Independent Egg Processors (lEP). The lEP buys “nest run” (unwashed and ungraded) eggs directly from the farmer. He processes (washes, candles for bloods, grades for size J and packs in one dozen boxes) these eggs from the 1 farm and sells them to retail ' outlets (stores, restaurants, , etcs.,). The lEP offers a valuable “service” to the farmer, mainly because it gives him time to concentrate on what he does best, that is produce eggs. The problem, however, is that we are being in creasingly taxed for this “service” with absolutely no representation. The farmer must realize that the lEP is not interested in making money for the farmer. For example, I can remember when the EEP was willing to pay his producers from one to two cents per dozen below the N.Y. egg market for large eggs. Today, from these same processors, he receives about 17 cents per dozen below the N.Y. egg market. What has hap pened 9 The obvious is that the lEP is paying the farmer about 15 cents less per dozen than he did 10 years ago. The lEP has gradually passed onto the farmer all of his inflationary costs Whenever, he had an in crease in cost, such as, for egg cartons, gasoline, labor, etcs , he informed his producers that he could no longer pay as much for the farmer’s eggs Did you ever ask why these inflation costs were never passed onto the consumer’ One possible answer is that it is much easier for the lEP to pay the farmer less for his eggs then it is to try to sell them to the retailer for more In fact, not only is he paying the farmer less, but he is also selling our eggs for less. Just a few years ago the lEP sold large TOOL UP HERE FOR A GREAT FUTURE IN THE HOG BUSINESS AGST^ I «I‘J sow AVAILABLE IN FARROWING, COMBINATION FARROWING/NURSERY, GESTATION, CALF NURSERY, The ideal environment for sows and pigs It has been proven over and over that well controlled, comfortable conditions can pay big dividends Raise larger and healthier litters while also providing yourself a much more comfortable place to manage your animals Compare our buildings with our competition and see why so many good hogmen are choosing ours AVAILABLE WITH PIT OR PITLESS WE SELL, SERVICE, AND INSTALL - FULL LINE PARTS DEPARTMENT *3s"* unfairly eggs for three to four cents over the market. Now his E SYST i & VEAL BUILDINGS. customers are paying, three to four cents below the market. It seems that the farmer’s mam concern has been to get rid of his eggs rather than what he should receive for them. When you realize that a farmer can accumulate up to Vz million eggs in just one week, you can fully un derstand his concern, even if it’s just to make room for next week’s eggs. The lEP’s I R : % N are fully aware of the almost neurotic dependence of the individual farmer on the processor for an egg outlet. The fanner straddled with huge bills (feed, pullets, equipment, etc.,), must have the continuous income from the eggs just to keep his head above water. If the fanner can somehow manage to just pay off these bills, it is considered to be quite an accomplishment in itself. jgjji ■ o i EQUIPMENT, INC. I RD3, Sprecher Road Willow Street, PA A \ Lancaster Co. mB „ I 717-464-3321 UJ^ylin The lEP has always readily offered to take all of the fanner’s eggs ever^P week. This has been, and is a great comfort; a sense of relief to the farmer. However, there has been a tendency for the lEP to use this “sense of secunty” as a leverage to convince the farmer that he should accept periodic price reductions. Over the years this “sense of security” has probably cost I | - ■ -*■
Significant historical Pennsylvania newspapers