(Continued from Pago A 25)
Economic Outlook
Milt Madison, economist with
the USDA-FSA, noted that in
1999 the per-capita consump
tion of poultry increased by five
pounds, making it the largest in
crease ever seen in the broiler in
dustry, he said. “It’s the biggest
increase we’ve ever had in
young chicken consumption.”
Every year, for the past 10
years, Madison has noted the in
dustry is poised to see depressed
returns and should scale back.
Yet production keeps increasing
with demand, and the numbers
“probably will continue to
surprise me and we’ll continue
to see an increase in produc
tion,” Madison said.
The economy continues to
surge, and with food costing less
than 10 percent of income,
people can consume “large
amounts of protein,” said Madi
son.
Exports in 1999 were down to
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15 percent of total production,
compared to the mid-’9os highs
of 17 percent, Madison noted. In
addition, the trend seen in the
past five years has been in
creased retail broiler price
spread, a record high. “There’s
been a tremendous increase in
the margins retailers are keep
ing for themselves in marketing
broiler products,” noted the
economist.
On a whole-bird basis, the in
dustry is doing quite well at this
point, he said.
Wholesale net returns for eggs
are staying positive, in 1999 at 6
cents per dozen. Prices received
are very close to the break-even
point, though there have been
strong per-capita increases in
table egg usage. Per person,
more than 10 eggs are being con
sumed additionally (about 75
egg products and 180 table eggs
per person per year).
If grain prices increase, there
could be “real problems for pro
fitability in the industry,” Madi-
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son said.
Legislative Agendas,
Other Issues
State Sen. Noah Wenger (R
-36), noted that of 976 concen
trated animal unit operations,
572 are participating under the
guidelines established by the
Nutrient Management Act,
along with 282 volunteers. That
equals about 60 percent partici
pation within the first two years
of the sign-up program, Wenger
noted, “a great tribute.”
The State Conservation Com
mission is working with univer
sities and federal agencies to
address runoff controls on the
phosphorus issue. If revisions to
the state act are necessary,
Wenger said, “We believe they
can and they will and they must
be based on sound science and
fact and not on emotionalism
and fears,” he said.
The state is preserving farms
“faster than any other other
state in the nation,” he told
those at the conference. That in-
eludes 1,260 farms on 156,000
acres in 42 counties.
The 100 additional farms to
be preserved under Gov. Ridge’s
Growing Greener Initiative has
“people working overtime,”
said Wenger, to assure its suc
cess. The deadline is Earth Day,
April 22.
Dr. Robert Elkin, head of
poultry science at Penn State,
noted that there are only eight
poultry science departments left
in the U.S. There’s only one
above the Mason-Dixon line,
only one in the Northeast.
Penn State has additional
funds that can be used to recruit
and retain excellent poultry stu
dents, Elkin noted.
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Lancaster Farming, Saturday, April 8, 2000-M5
The university’s poultry sci
ence club received the U.S. Poul
try Science Club of the Year
Award and best scrapbook. A
club member was recently
elected to a national post “from
the smallest poultry science club
in the country,” Elkin said, with
approximately 23 members.
In addition, the department
has announced that there is an
animal science major, which
combines the poultry technology
management program with the
dairy and animal science major
to create the new animal science
major.
On April 28, the poultry sci
ence club will be conducting
their banquet at the university.
More information will be avail
able later.
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