The Rural Voice, 1998-01, Page 271
producers do, and supporters of the
idea suggest it will allow smaller,
Tess efficient processors to leave the
industry and sell their quota to large
processors. Their argument is that it
will make the industry more flexible
and competitive.
As it stands, the plant will be able
to increase its intake to 450,000
kilograms by quota period A-20. The
producerswill continue to press for
more allocation of their own product.
They are, in effect, reversing the
feared trend of vertical
integration, with producers
getting into processing, rather than
processors getting into growing the
birds they need. The fear of many
producers is that if international trade
regulations someday undermine the
supply management system, the
integration in the U.S. chicken
industry will move north. There,
because large companies control the
feed supply, the processing and the
source of the genetically -superior
chicks which are essential to remain
competitive, many contract growers
are left with little power when they
negotiate their contracts .
But, says Kressibucher, the
happiest contract poultry producers
in the U.S. seem to be those who
produce for farmer -owned co-ops
like Goldkist.
The producers have already
started to alter their own production
to meet the needs of their plant. Since
the plant can process Cornish hens,
some chickens have been pulled from
the barns at a younger age to meet
those needs, Kressibucher says. The
plant can also process birds right up
to turkeys.
The new generation of co-
operatives like Farm Fresh Poultry
and the Canadian Emu Co-operative,
are much different than the original
co-ops, say Akalay and Kressibucher.
For one thing, says Kressibucher,
there's greater commitment.
When farmers had a $100
membership in older co-ops, there
was little necessity of loyalty when
better prices could be obtained
elsewhere. But members of Farm
Fresh had to kick in $20,000 each
(the Emu co-op's members invested
$3,000 each) and so they need to be
much more committed to the success
of their co-op.
The Farm Fresh Co-op is also
structured so that in the future it can
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JANUARY 1998 23