UNIVERSITY PARK -
What effect will expansion of
egg production have on egg
prices in Pennsylvania? Will
it result in farm prices
relatively lower than in
other areas of the Unitpri
States?
If marketing agencies as
well as producers provide an
orderly flow of eggs to
markets, serious nrice
problems may be avoided.
Producers and marketing
agencies must cooperate if
the industry is to capitalize
on marketing expertise in
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814-669-4027
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ELECTRIC
215-845-2261
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LUCAS BARN
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814-383-2806
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717-935-2101
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Marketing problems explode
boom
during egg production
the state and avoid local
price depressing effects of
expansion, Poultry
Marketing Specialist Kermit
Birth says.
As production expands,
the marketing part of the
industry has three alter
natives: (1) Replace eggs
produced outside and
marketed in the area. (2)
Market eggs outside the
area. (3) Increase per capita
consumption.
There isn’t any question
that if one or all of these
developments do not take
DISTRICT MANAGER
GEORGE HEATH 472 Woodcrest Dr. Mechamcsburg, PA 17055 717-737-9400
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i j i*i i Lancaster Farming, Saturday, February 9,19*0—C35
Increased consumption unlikely 51
place Pennsylvania
poultrymen could face
relatively poor prices.
We can’t count on in
creasing Donulation to ab
sorb additional supplies m
the near future, he says.
New York City wholesale
market continues to be the
dominant market. It con
tinues to be the price
determining center. It is
either directly or indirectly
the basis of trading for a
high percent of the eggs
marketed.
The direct effect is that
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SANER FARM
SYSTEMS
717-463-2606
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LABOR SAVERS
717-692-4647
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TERRE HILL
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215-445-6736
The indirect effect is when
prices paid do not state a
fixed cents per dozen plus or
minus the wholesale market,
then the New York wholesale
prices may place a ceiling on
prices paid.
This may be an important
consideration when deter-
:rsburg
prices paid or received by
producers, wholesalers,
and/or retailers is a fixed
amount plus or minus the
New York wholesale market
price for the specific
wholesale grade and size.
WILLIAMSBUI
LONGENECKERS, INC.
814-793-3731
MARYLAND DEALERS
HAGERS'
IWN. Ml
KENNEDYVI
PINDER SERVICE CO,
301-348-5263
' LINEBORO. MD
WERTZ GARAGE, INC,
301-374-2672
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P&S EQUIPMENT, INC
301-452-8521
mining the price to sell or
buy nest run eggs.
The other indirect effect is
that wholesale prices for
another market which is
used as a trading base bear a
direct relationship to the
New York City wholesale
market.
As long as the New York
City wholesale price is used
as a trading base, over
supplies in the metropolitan
area which depress prices
can have a depressing effect
in other market areas even
though there may be a short
supply situation m the other
markets.
If the price is artifically
held and does not reflect
supply and demand for "
particular market area,
eggs may not flow from the
surplus to the deficit market
area, Birth says.
Replacing eggs from other
areas has been taking place
at a rather rapid rate in New
York, New Jersey, and
Pennsylvania and will have
to continue to do so as
production expands.
The method of bringing
this change about is of
primary concern to the in
dustry.
Is the transition ac
complished by (1)
decreasing purchases from
other areas by our Penn
sylvania marketing agency?
(2) is it at the retail market
through reduced prices? (3)
or is the replacement made
at the going price through
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improved quality and ser
vices?
Marketing and pricing
eggs from outside the area to
maximize returns from eggs
is not an easy matter.
Sometimes it is necessary
to sell eggs as surplus at less
than the prices obtained in
existing markets in order to
avoid depressing prices.
This is the challenge facing
marketing agencies. They
must use existing systems
for moving eggs from where
they are in surplus to where
they are in short supply.
Often when there is a
surplus m one area, there is
a deficit in another. This
may require some changes
m marketing practices.
The use of racks for
transporting eggs from farm
to plant requires extra
handling when selling and
delivering eggs to distant
markets. In some instances
it may be necessary to pack
eggs in 30 dozen cases on the
farm to facilitate the
transfer. The transfer of
eggs out of the area can no
longer be treated in a casual
manner as in the past.
Increasing per capita
consumption often is held up
as the means of reducing
surpluses and marketing
increasing quantities of eggs
in a given market area. As
consumption expands it may
temporarily make over
expansion. If we increase
consumption it must not be
(Turn to Page C 36)
Reg. $169.95
*l59 95
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