The Delmarva Poultry In dustry is keeping a stiff up per lip in the face of some difficult economic problems. It’s hard to smile when it hurts, and that’s just how most of the broiler people feel right now. They’ve been losing money for several months, and it doesn’t look as though Hot-Dip galvanized barn equipment Fights rust Jamesway stalls, pens, stanchions, water cups and accessories are totally immersed in molten zinc. Bonds long-lasting rust protection over every square inch of surface, inside and out. Can’t chip away, like paint. Means longer working life; longer good looks too. See us for systems and service that help make the good life better. AGRIEQUIP. RD4, Farmersville, Ephrata, PA 717-354-4271 I. G. SALES Rt 113, Box 200 Silverdale, PA 215-257-5135 G. HIRAM BUCHMAN, INC. Rte 519-N. off Rte 46 P.O Box 185 Belvidere, NJ 07823 ERB & HENRY EQUIP., INC. 22-26 Henry Avenue New Berlmville, PA 215-367-2169 they’ll turn the comer until at least the end of the year. To appreciate the dilem ma they’re in, you have to understand a little about the business. In economic terms, it’s called a vertically integrated industry. What that means is that a few firms control virtually all broiler production, pro- JAMESWAY cessing, and marketing on the peninsula. These firms own just about everything that’s involved in producing chickens. That includes pro cessing plants, feed nulls, truck fleets, hatching facilities, and research farms. The only thing they don’t own are the chicken houses where the broilers are rais ed. Those belong to a lot of farmers who take care of chickens on contract with the mtegrators, and who are paid on a pre-determmed schedule for their efforts. So when we say the broiler industry is losing money, we’re really saying that seven or eight companies are losing money. One in sider told me there’s no way any one of them is losing less than a nickle a pound on every chicken that’s produc- DEPENDABLE MOTORS ROVENDALE SUPPLY H PA RD2, Watsontown, PA 17777 717-538-5521 215-273-3737 HENRY S. LAPP SOLLENBERGER SILOS RDI, Cams, Gap, PA 17527 RFD 2, Chambersburg, PA 717-442-8134 717-264-9588 HARRY L. TROOP Rt 1 Cochranville, PA 19330 215-593-6731 TAM B S n^ S J EMS ® ORP - DETWILER SILO REPAIR RD 1, Mountain Rd Dillsburg, PA 17019 Rt 2, Newviile, PA 717-432-9738 717-776-7533 ed. And some are losing more than that. When you consider that total broiler production on the peninsula will exceed 400 million birds this year and each chicken will weigh about four pounds, you’re looking at a lot of mckles. And those losses are shared by relatively few companies Before you become too alarmed about the state of the industry, you should also consider that the industry went through a time of pro sperity, several years, in fact, when broiler profits were quite good. Whether they saved any of those pro fits for the eventual hard times is uncertain, but my .source says that’s not the nature of the industry. In the good times they ex pand and improve, so there usually isn’t much cushion to I. A. SWOPE Box 121, RDI Myerstown, PA 717-933-4758 Lancaster Farming, Saturday, May 24,1950—07 carry them through loss periods. The broiler industry hasn’t always been organized this way. What we now have is the result of almost 60 years of evolution, starting in a lit tle chicken house in Ocean View, Delaware, in the early twenties when Mrs. Wilmer Steele decided to sell all of her young chickens as fryers rather than keep them for her laying flock. That was the documented birth of the broiler industry. From there it grew and spread throughout the coun try to its present state of a multibilhon-dollar industry with reportable production m 21 states. The backyard flocks of the twenties gradually grew into the feed company-owned flocks of the forties and the processor-owned birds of to day. there was a time when farmers bought young chicks, raised them, and sold them to the highest bidder. Then came a period when the feed companies arrang ed for contract growers with the companies providing the feed and the birds, while the farmers provided the houses and the labor. At the proper time, they were sold to a pro cessor. Hard times, expansion, good business sense, a lot of things changed that too. A few companies now take huge losses and remember the good times of yesterday. Under the arrangement, Delmarva’s broiler industry has been a dominant factor. Compared to other areas around the country, the Delmarva peninsula ranks fourth in total production behind Arkansas, Georgia, and Alabama. It produces more birds SERVICE & PRICE MADE US NO. 1 IN SALES FOR ILT rs WITH OUR LOW OVERHEAD WE CAN SELL AT LOWER PRICES ALL TROY-BILT TILLERS SOLD AT 20% DISCOUNT PLUS FREE HILLER FURROW STIHLSAWS ★ GARDENWAY CARTS SEE US BEFORE YOU BUY NORMAN H. ZIMMERMAN, INC. 52 S. Ramona Road, Myerstown, PA Vz mile west Myerstown - West Main St. Phone (717) 866-4695 SHOP HOURS Mon & Fn -8 to 8 Wed SThurs -8 to 5 than Texas, California, Pen nsylvania, and a bunch of other states. The industry employs more than 17,000 people, has an annual feed bill of almost 340 million dollars and uses virtually every bushel of com and soybeans that can be raised here on the penin sula, plus some more that must be brought in. Some say the broiler in dustry is unique in the way it’s organized. Others have said it’s just ahead of its time, that other farm enter prises will eventually go the way of broilers. Some are predicting already that hogs will become part of a ver tically integrated system in the not-to-distant future, with the small producers left without a market. The Delmarva Poultry In dustry raised almost $283,000 m its annual fund drive con cluded recently. That’s about $20,000 more than its goal and a considerable ac complishment, considering the staggering losses the in dustry is currently suffering. But the stiff upper lip prevails and m the words of DPI president Paul Twining, Jr., “We must aggressively continue to promote the superior aspects of chicken as a staple in the American diet. Chicken is one of the most economical, nutritious, well-balanced, versatile meats available to the con sumer.” What about the future for the industry? Everybody seems optimistic. My source feels most processors will start showing a profit by the end of the year. He also thigks one or two from that handful of com panies might not make it through the crunch. 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