—Lancaster Farming, Saturday, May 19,1979
30
Pennfield chief
UNIVERSITY PARK
Robert Graybill, president of
Pennfield -Corporation,
Lancaster, is convinced that
conditions are ripe for
Pennsylvania’s poultry and
hog producers to expand
their "operations. And the
chief executive of one of the
state’s major agribusiness is
also proud of what Penn
sylvania farmers are doing
and can do. Speaking here at
an agricultural conference
for bankers on Thursday,
Graybill said Pennsylvania
is prune farm territory not
only ' because of Us
productive land and its hard
working people, but also
because it is located within
an overnight drive of more
than a quarter of this
nation’s people, and present
agricultural production in
the area is far short of
consumer needs. With the
economics of transportation
becoming a more critical
factor in the availability of
food, Graybill sees a good
opportunity for fanners. He
concluded:
Pennsylvania’s geograph
ic location, combined with
growing economic and
consumer pressures, put it in
an ideal position to provide
more foods for neighboring
areas, particularly in the
current high-growth hog and
poultry fields.
The Northeast Region
(comprising Ohio, the
Virginias, Maryland,
Delaware, New Jersey,
Pennsylvania, New York
and the New England states)
is undersupphed by its own
farmers in several key
foodstuffs and represents a
big potential market for
Pennsylvania-raised produ
cts.
State production of hogs is
currently some 2 million
head behind its slaughtering
capacity; this represents
significant potential growth.
Poultry and swin'e
agriculture, abetted by
recent advances in
agricultural science, offer
greater efficiency of
production and space
utilization than other types
of livestock, particularly
beef cattle.
Due to prevailing “up”
market trends and the fruits
of research, there has never
been a better tune for
agricultural lenders to in
vest in livestock farming
operations.
Recent developments m
livestock management have
enabled farmers to raise
their animals more ef
ficiently; thus, greater
profits are generated, and
’he individual farmer is
letter able to meet iong
.erm debts.
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%
Robert Graybill
The past performance of
Pennsylvania farmers, and
the predominance of family
farming in the state, can be
interpreted as evidence that
lending to these individuals
is a sound business risk.
Current trends indicate
future Pennsylvania farms
will be fewer/ in number,
generally larger in size and
more specialized than
today’s farm operator.
Pennsylvania is
traditionally a leader in
livestock agriculture, a field
which accounted for nearly
three fourths of the state’s
agricultural rash receipts in
1976.
Following are excerpts
from Graybill’s presen
tation:
“This opportunity for
growth and specialization
isn’t restricted to our area;
of course. Current national
forecasts by agribusiness
economists predict that for
the next 8 to 12 years, con
ditions will be very
favorable for establishing
and maintaining highly
profitable livestock
operations. These favorable
conditions come at an ideal
time, because they give
American farmers a chance
to fully develop the efficient
growing procedures needed
to stem the influx of
fabricated foods, like those
based on vegetable protein,
which have gained some
degree of acceptance due to
their slight price advantage
over the foods they replace. ”
“Within this bright picture
of opportunity for livestock
farming ... Pennsylvania
stands out as one of the
leading potential growth
areas. This is especially true
when considering the field of
poultry production, already
well established, and the
rapidly growing field of hog
production.
“What’s m the future for
our poultry farmers? A
ready market, according to
all indications. Right now we
could use a higher volume of
locally produced poultry
products. Consider eggs, for
example. To meet the
demands of the more than 38
million people living m New
York, New Jersey and
Pennsylvania - not counting
is bullish on hogs and chickens
tht“ list 111 lilt* \ul Ult'ilhl - ,i
loUil til i , i iiulliuii egg
piuduung iliitkciis an 1
needed Yet in these three
states, poullij tannins
currents house orilv J 4"
million egg-pi oduung
chickens. In othe words, as a
region, we’re roughh 1°
million birds short of
meeting our demand of eggs
All the eggs we eat over and
above those
produced by our 24.9 million
egg-producing chickens are
transported in from outside -
and represent a huge
potential gain for farmers to
produce fresher, more ap
pealing, local eggs. And this
gain can mean not only in
creased profits for faiinCi ~,
but also for arp*> "miw
“Another advantage of
poultry production this
area is the swing of the
production-cost pendulum in
our favor. At one time, it was
cheaper to produce poultry
in the Midwest, where the
feed gram was plentiful, and
ship the product east than it
was to ship the grain cast
ancLgrow the birds locally.
Due to skyrocketing energy
costs, this is no longer the
case. We can now produce
poultry products in the
Northeast that are com
petitive with those grown
elsewhere - and may, in fact,
enjoy a price advantage.
“And let’s look at pork
production. You’ll find that
Pennsylvania represents an
amazing potential for
growth in this field. Recent
figures show that over 2.8
million, hogs were
slaughtered in Penn
sylvania, ranking the state
eleventh nationally in this
area. Of those 2.8 million
hogfef only a little over
750,000 were grown here.
Nearly two million hogs
slaughtered in Pennsylvania
in 1977 came from out-of
state. So the opportunity for
significant growth in hog
production is here right now.
“Poultry and hogs have a
considerable advantage over
other grain-fed livestock in
efficiency of production. The
yardstick for comparison
here is that American
favorite, gram-fed beef. Beef
can be finished at a con
version rate of nine pounds
of feed for one pound of beef,
i .ii)\ tanners are
.i n.i.i in' ilei-i at a con
i iTsiun f au ..i two pounds of
giamtui mu pound of meat
The i< i nomics- are clear
here mm get more than
four and a half times greater
efficiency with poultrj than
vou can with beef This
superior efficiency is the
result of on-going research
into poultry nutrition byagri
business companies, and the
willingness of area poultry
growers to adopt new
techniques of nourishing ind
managing their flocks. At
the same time, these effi
ciencies allow farmers to
reduce production costs
relative to market prices.
“In addition to the greater
efficiency, consider the
effect that a reduction in
available feed would have. If
such a reduction became a
- reality, area farmers raising
chickens, turkeys or pigs
would be affected to a much
smaller degree than those
growing grain-fed beef cattle
locally.
“Another benefit is quick
turnover. Broilers can be
raised from chicks to market
weight m just seven to nine
weeks, allowing the farmer
to produce up to seven
complete flocks in a year
and generate a more con
sistent, steady income. Hogs
can be raised from farrow to
finish in just 23 weeks using
modern techniques.
“A problem which faces
this country today, and
which will continue, is
dwindling farmland and the
need for proper utilization of
existing space. Here’s where
poultry production provides
another advantage. Up-to
date layer houses, for
example, can hold over
60,000 birds at a time without
crowding on a four deck
system, while occupying a
space of less than 21,000
square feet. This enables
farmers who can secure the
investment capital to utilize
acreage that might other
wise be unused and trans
form it into a highly
profitable poultry growing
operation.
“Turning to hog
production, one of my
associates, Dr John Fidler,
correlates the
state of the swine growing
art to that of the technology
and nu Hi' dology of poultry
gtowihi 10 to 15 million
vea go Recent research -So, all factors con
haa made great strides sidered, it’s a great time for
toward improving the Pennsylvania farmers to
feeding efficiency of hogs invest in livestock
Preliminary -results have agriculture Market con
shown that it takes less than ditions, forecasts and
three of feed to scientific progress couldn’t
prbduee one pound of pork. " be more encouraging. But
This figure can be improved entering either of these
upon through further fields today and doing so
research and the widespread competitively requires a
adoption of confinement large investment that can
raising, which offers ex- only be generated through
cellent space efficiency and the support of the lending
enables farmers to generate institutions. -
increased profits-from fixed
acreage.
w