Cost Of Feed “Serious” For Egg Producers

Press, Volume XCVIII, Issue 28911, 3 June 1959, Page 16

Cost Of Feed “Serious” For Egg Producers

A continuation of the present high costs of poultry feed, and the much lower retail price for eggs compared with previous years could force many poultry keepers out of business, said the chairman of the Canterbury-Westland Registered Poultry Keepers’ Association (Mr J. M. Powell) at the annual meeting'of the association last evening. “We have taken a bit of a hiding on the question of feed prices: it is quite a serious matter for the industry,” he said. “If poultry keepers are forced out of business it is difficult to see how they can get their money out of their holdings. It is a most worrying position to be in at the present time.” he said. Referring .to feed prices, Mr Powell said ’that during the latter part of the association’s year producers had had to face increased costs of mash, wheat, and meatmeal. Unfortunately these increases were passed on to the poultry industry and in recent months had had to be carried by the poultry farmer, he said. No matter what the cost of production might be. all the producer could receive was what the consumer paid for eggs. Retail prices had been much lower in recent months because of increasing production all over New Zealand, but people were not consuming enough eggs to take care of the increased production. said Mr Powell, who suggested that a vigorous sales campaign be instituted. Commercial poultry farmers should be given some protection by the Poultry Board in the form of incentive payments. Payments could be made for quality, and on a sliding scale of commissions, he said. Other suggestions were that the Poultry Board or Egg Marketing Authority could assist the larger egg producer by buying poultry feed and medicines in bulk and distributing them at lower cost to the grower. Mr Powell said it was most unfortunate that hints had been given by the Egg Marketing Authority that the basic price would be fixed in June last year. “It is impossible to fix the price of eggs until an idea of the production figures are available,” he said. “It was most annoying that no extensive advertising was carried out to tell consumers that eggs would be Is a dozen cheaper than last year,” he said. The industry would have to sell the eggs in this time of over-production, and let consumers know that egg prices were cheap. The increase in wheat prices had made the position of the industry a “most unhappy one,” he said

“Exploited” By Wheat Growers Mainly undergrade wheat was used by the industry and there was no reason why this should be increased in price to the same extent as for average quality wheat.

Mr Powell said poultry farmers were being “exploited” by wheat producers who forced wheat containing excess moisture, straw, husks, and impurities of various kinds, and wheat out of condition. dirty and sprouted op to the poultry industry at maximum prices. The Wheat Committee had no control over undergrade wheat producers, but protection could be given from exploitation if all wheat was controlled by the committee, Mr Powell said.

, Over-production and the high prices for feed were the main troubles in the industry, which was very susceptible to economic conditions, the general manager of the New Zealand Poultry Board (Mr A. E. Bridle) told the meeting.

The industry faced its highest yearly sales increase through egg floors of 1.600.000 dozen, he said. Production had shown an increase of six million dozen eggs since the Egg Marketing Authority was set up. “There must be a limit to our sales.” he said. Production this year had increased at a much faster rate lhan the population increase. Production was increasing at double the rate of sales increases, and sales of eggs had never been higher than at present. he said.

To overcome the present problems of over-production the industry would have to maintain its sales rate at the highest level possible and “dampen down” the rate of production.