A26-Lancastar Farming, Saturday, Dacembar 14,1985
V
Hearings on Egg Marketing Order to begin next month
BY JACK RUBLEY
LANCASTER - With sales of
most livestock and poultry
products in the doldrums, com
modity groups continue to battle
for a share of consumers’ elusive
food dollars.
Guided by the slogan “Let’s turn
it around,” the egg industry hopes
to pull out of its current tailspin
with its latest version of the long
awaited egg marketing order. On
the drawing board for several
years, the marketing order is the
closest the industry has ever come
to implementing a nationwide self
help effort, according to United
Egg Producers president A 1 Pope.
Pope, whose Georgia-based
organization has been in
strumental in developing the
marketing order, came to Lan
caster on Tuesday to stump for
what UEP feels is the industry’s
best hope for revitalization. Since
receiving a recent blessing from
the U.S. Department of
Agriculture, the marketing order
will be the focus of nationwide
hearings to begin early next
month, said Pope.
In its current form, the
marketing order contains two
provisions, one for promotion and
research, and one for removal of
surplus laying hens. The
provisions are to be funded by a
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one-cent-per-dozen assessment,
with the money being split evenly
between them. Growers with less
than 10,000 layers would be
exempt.
Under the promotion and
research component, no less than
five percent of the revenue would
be earmarked for developing new
products for eggs and fowl. Also,
no less than five percent would be
devoted to research concerning
health and nutrition issues. Fifteen
pe'rcent of the funds would return
to the states where they were
generated to assist in state-run
promotion programs.
Approximately $24 million in
promotion and advertising funds
would be generated during the first
year of the program, Pope Pope
estimated. nationwide egg supply warranted
Participation is optional under activating the surplus removal
the surplus removal component, provision. Producers would then
Here producers would be paid a be able to submit a bid proposal to
premium for moving a market their birds early,
predetermined number of layers to The board reserves the right to
market before their normally increase the check-off amount by
scheduled slaughter date. After the no more than one cent per dozen in
birds are gone, the producer would V4-cent increments. The board can
not be permitted to restock his also reduce or eliminate either
house until the sell-early period provision if funds are unused or if
had expired. reserves are being maintained.
Marketing order funds would be In its present form, the
administered by a 21-member marketing order lacks a con
board overseen by USDA. The troversial quantity control
board would determine when the provision that was part of the first
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marketing order draft and would
have established production
quotas for-egg producers.
Some producers, including Mark
Widerman of Adams County, feel
that the teeth were removed from
the marketing order when the
quantity control provision was
deemed unacceptable by USDA.
“We think that expansion needs to
be stopped, and we thought
quantity controls would stop some
of that,” Widerman said. “We
have some questions as to whether
it’s going to do us that much good
now. Promotion will do some
good,” Widerman observed, “but
as long as you have people out
there expanding you’re not going
to get anywhere.”
“The marketing order is a
compromise order,” Pope con
ceded, pointing out that firm op
position from both the ad
ministration and USDA has made
any kind of production controls a
dead issue. “But I don’t like the
alternative if we don’t get this
(marketing order) through,” Pope
added, pointing out that the
number of egg producers
nationwide has declined from
12,000 to 2,700 in the last four years.
In an interview following the
meeting, one other Lancaster
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County producer, who requested to
remain anonymous, voiced his
lack of confidence in a marketing
order with no production controls.
“If we’re going to increase con
sumption, we’re definitely going to
increase the price,” said the egg
producer. “Then you’ll have more
building and more eggs, so we need
some type of control.”
But UEP’s A 1 Pope feels there is
still much to be gained by adopting
the current marketing order. “If
we sell more eggs, granted we’ll
produce more,” he said, “but I
think we’ll produce more profits,
too.”
Glenn Smith, vice president and
general manager for Pennfield
Farms’ Egg Division agrees.
“We’ll always have the ability to
overproduce,” said Smith, who
feels that the current marketing
order will allow the industry to
keep moving forward by creating
more demand for eggs. “The basic
issue is, would you choose to be
part of a growing industry or a
declining industry.” Smith was
recently named one of two state co
captains, acting as a liaison bet
ween the marketing order com
mittee and the egg industry.
A producer referendum on the
marketing order will probably
take place next fall, Pope predicts.
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