A3o—Lancaster Farming, Saturday, October 20,1984
Tony Stemberger
Egg order
(Continued from Page Al)
favors the utilization of more ef
ficient birds.
He said that an egg allottment
system would require an
assessment of less than V«-cent per
dozen.
Although producers were
generally in favor of a mandatory
research and promotion checkoff
program, most felt that the
proposed one-cent per dozen was
excessive. Accordingly, the
committee has recommended that
a figure of M>-cent per dozen be
used, with the amount being raised
to not more than one cent over a
five year period. A %-cent checkoff
would raise between $22 million
and $24 million annually, Weber
said, with a minimum of five
percent being set aside for diet and
health research and dissemination
of this information.
Also to be included in the final
marketing order draft will be a
provision for surplus hen removal.
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Producers would be assessed at
the rate of V4-cent per dozen on a
continual basis to build a fund to
pay for the removal of excess hens
during a predetermined time of the
year.
Weber also indicated that there
will some type of quality assurance
clause developed for use in the
final draft.
Also on hand to discuss
marketing order pro’s and con’s
was Stan Steen, director of the
Ontario Egg Board, who recently
chaired the International Egg
Commission’s supply management
symposium in The Hague.
“There is a great feeling
throughout the world today for
some type of assessment to im
prove the lot of farmers,” said
Steen, whose province of Ontario
has maintained an egg marketing
board for the past 20 years.
On the plus side, Steen noted that
the use of quotas in Canada has
eliminated “boom and bust”
cycles during the past 10 years. No
producers have lost money, and
the more efficient ones are are
doing very well.
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“The system does tend to
preserve the status quo,” he noted,
adding that Canadian producers do
find it difficult to expand. Steen
said that hen numbers have been
reduced and most Canadians are
operating at about 70 percent of
their capacity.
Steen cautioned that an egg
control system will be very dif
ficult to handle in the U.S., where
more eggs are produced in Pa.
alone, than in all the Canadian
provinces combined. He recom
mended that the country be
divided into ‘‘egg sheds”
delineated by the major population
centers. Production could then be
more closely monitored, with stiff
penalties imposed on producers
who over-produce.
He also cautioned against
exempting producers with less
than 3,000 birds from production
controls.
“You’ll have small producers
coming out of the woodwork,” he
warned, reminding his audience
that only a one-percent increase in
production can lead to a five
percent decrease in profits.
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NEW PROVIDENCE (717) 786-3738
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The evening’s final speaker was
Penn State economist, Tony
Stemberger, who pointed out that
the central purpose of the
marketing order ought to be
controlling the supply of eggs.
Noting that a quota system is not
specifically designed for the
purpose of having the consumer
pay higher egg prices, he pointed
out that prices will automatically
go up as supplies are cut back and
the demand increases.
“We found out last winter that
consumers are willing to pay more
for eggs,” he said, alluding to
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Gerald Weber
prices that reached $1.50 per dozen
early this year.
When asked if quantity controls
were favored primarily by the
larger producers responding to the
survey, Weber pointed out that
there was no correlation between
the size of the producer and his
feelings concerning quantity
controls.
Weber said that, once an ac
ceptable marketing order has been
drawn up, the final draft will be
submitted to the USDA for public
hearings. This phase will require
12 to 18 months, he said.
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