Zurich Citizens News, 1971-04-29, Page 4tzr
PAGE FOUR
ZURICH CITIZENS NEWS THURSDAY, APRIL 29, 1971
What the Consumer should know about this
Chicken and Egg War
By FRED W. BEESON
Editor, Canada Poultryman
What's this 'chicken and egg war' all about? Is it a war, and if so,
who's waging it?
Well, it's a struggle for markets, brought about by automation
within the industry that has made production of eggs, chicken and
turkey so easy that we can continually overproduce, with a resulting
soft market, pricewise.
Producers in some provinces have, through self-discipline, regulat-
ed their supply to fit the available market, while other provinces
with no regulations in force, have consistently overproduced and
dumped their products into the regulated areas,
many times at below cost.
The poultry business isn't what it used to be,
like the time when nearly everyone upon retire-
ment thought how nice it would be to have a
chicken farm, and what fun it would be to pick
up all the eggs every day. Today the average
man or family in this business has about one
hundred thousand dollars invested in buildings,
equipment and land, and many have a great deal
more than that. It is low -profit, fast turnover,
big volume business — a business, not a hobby
— and run by business men, not what many
consumers might think of as 'just a farmer.'
Any break in price, then, can have a most serious effect on net in-
come. When I tell you that one cent per lb. for chicken or turkey, at
farm level, or 2d per dozen on eggs, up or down, makes a difference
of $4,000 net per year to today's average size grower, you can under-
stand how PRICE is of paramount importance.
I'll give you a hypothetical illustration. You are working for a
large manufacturing company. There is a lot of unemployment, so
your boss, being a nice fellow, decides to take on ten per cent more
workers so that they can have a paycheck. He cannot increase his
sales so his costs naturally go up, and as he cannot increase his selling
price either, the money to pay this extra help has to come from
somewhere, Where does he get it? Why, from you, of course. He cuts
everyone's rate of pay by ten per cent!
If that sounds unacceptable to you, then consider how the poul-
tryman who has regulated his supply to fit demand, feels when ex-
cess product is put on his market with the inevitable result that the
price goes down.
This, then, is what the 'chicken and egg war'
is all about — markets and prices.
Take a broiler grower in Ontario, for example. He grows for a net
cost of 18d per lb. live weight. His marketing board sets his selling
price to the processor at 22d, so he makes 4d per lb. His annual grow -
out is 400,000 lbs. so he makes $16,000. That's possibly more than
you make, but remember, he has a hundred thousand dollars invest-
ed, with no doubt some of it bank money to be repaid with interest.
All is well, though, until Quebec, which is overproducing, ships
chicken into this man's market. Down goes the price, one cent, then
two cents, perhaps three cents per Ib. Then he hollers, and why
shouldn't he? At 3d down, his net income has dropped $12,000 or
75%,
Quebec has been doing this in Ontario, and' all the way west to
British Columbia; and with turkeys.
With eggs it's been the other way round. Quebec has a marketing
board and growers are on quota. But Ontario and Manitoba have no
quotas or other means of regulation and have been increasing produc-
tion beyond all reason, and they have been expecting Quebec to take
this excess production. They have also shipped west and weakened
Alberta's market, and Alberta has a marketing board and is trying to
practice Supply Management, or managing the supply. So Quebec
and Alberta both holler.
And all these hollerings have been directed at the respective pro-
vincial governments, who, naturally, will not let their good tax pay-
ing growers be sold down the river, so they give the marketing boards
the authority to control all product coming in from another province.
AIR That, in the opinion of some people, is Balkanizing the country!
Maybe it is, but in my opinion it is no more Balkanizing than the situ-
ation we have in the oil industry where no western oil is sold east of
a line drawn across the Ottawa Valley in Ontario, and where new oil
wells are capped in Alberta if the supply is already sufficient. Or, the
restrictions that lawyers and doctors face in moving from one prov-
ince to another. Or, trying to get work without joining, and paying
dues to, a union. All these instances might be described as Balkan-
izing, It is a catchy phrase, with very little meaning.
All industries need some regulation today and the poultry indus-
Fred W. Beeson
ZURICH Citizens NEWS
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try is no exception. Without regulation we continually face a market
collapse.
In this so-called 'chicken and egg war' it is to the credit of every
province from Nova Scotia to British Columbia, that, with their new
authorities over inter -provincial movement of product, there has been
not one single instance of raising prices above what they were before
the trouble started.
The Dominion Bureau of Statistics has published a Retail Price
Index of MEAT, comparing 1949 prices with 1969. Beef, in those
20 years has increased 78%, with all red meats up 61%, and all
poultry meat down 20%. Eggs, also, are down today at Vancouver,
Winnipeg and Toronto compared to 20 years ago.
That means that you, as consumers, are buying eggs, chicken and
turkey at lower prices today than 20 years ago. What else is LOWER?
HOW SMILEY DEALT
WITH OFFICER TYPES
Last week I had a rare chance
to do something I've always
wanted to do, and I seized it
with both hands and my tongue.
I was speaking to the Vimy
Branch, Royal Canadian Legion,
at its annual observance of the
battle for Vimy Ridge. The
Vimy branch is unique in that
nearly all its members are ex -
officers of the Canadian armed
forces.
On the program for the banque
was printed a list of the exec-
utive and the past presidents. It
contained a bounty of Brigadiers,
a confusion of Colonels, a mess
of Majors, a wedge of Wing
Commanders and a scattering of
Squadron Leaders. Senior offic-
ers. Sitting ducks.
Ever since my days as a fledg-
ling fighter pilot, I've enjoyed
a fine conviction that there is
no possible way anyone can
pound anything into the head of
a senior officer.
Here was a golden opportunity
to prove my theory, and I sailed
into it with gusto. I didn't use a
phoney survey or a lot of statist-
ical facts, but personal exper-
ience, and I let them have it
with both barrels.
As a flying student, I first ran
into the obtuseness of the senior
officer. This wing commander,
the chief flying instructor, nearly
had a stroke because I'd tried to
land from one end of the runway
while another student was trying
to land down the other. How was
I to know the wind had changed
180 degrees since I'd taken off?
During advanced flying train-
ing in England, a similar occur-
rence deepened my conviction.
I was coming in to land, every
sense alert and my mind dally-
ing with a 72 -hour pass and a
chubby Land Army girl. Some
fool down on the runway started
firing red flares,
I went around again, and
again he did it. I had checked
the windsock carefully this time,
so knew it was his fault, not
mine. On my fourth approach,
I did the usual cockpit check
and no red flares went up.
I rolled to a stop and the
squadron leader was standing in
his jeep, his face a sort of mul-
berry shade. And once again
the insensitivity of senior officers
was displayed. Not only did he
call me a stupid clot who should
be sent back to Canada in a
strait -jacket, but the dirty dog
cancelled my weekend pass.
And all because I'd forgotten
one little item on my first three
approaches: putting my wheels
down.
Then there was my squadron
commander in France. I was his
No. Two and we'd made a dive-
bombing attack, firing our can-
non as we dived, which was our
wont, not to hit anything, but
to bolster our nerves. He shouted
something on the way down, but
I thought it was something silly
like, "Hammer the Hun, " so
paid no attention, closed my
eyes, as was my wont, and
squeezed the tit.
When we landed, he was in a
terrible flap because I was the
only one who had dropped his
bombs - on the wrong side of the
bomb line.
I thought it was damn poor
navigation on his part. I think
what really bothered him was
that I'd shot off a bit of his wing
on the way down.
Then there was the ridiculous
squadron leader in flying control
who made me land with a hang-
up. In those days a hang-up was
not some trivial emotional dist-
urbance. It was a fused bomb,
dangling by its tail from your
wing.
I tried to get rid of it over the
sea. Nothing worked. Hopefully,
I suggested, "Shall I bail out?"
His reply: "Don't be silly. We
need that aircraft." Pilots were
cheap, aircraft expensive.
One bounce on landing and it
would be meat, me, all over
the landscape. And I was always
known as Two Bounce Smiley.
Did you ever see a mouse with
kid gloves on, walking on egg-
shells? That's the way I landed.
But what hurt was that he would
'nt let me land on the metal
air -strip, as he didn't want it
torn up when I blew up. I had
to land on the bumpy verge be-
side the strip.
Just a few of the examples
I gave to the senior officers in
my audience of the bone -head-
edness of senior officers. They
took it well, because, of course,
they didn't understand. I offered
to step into the alley, afterwards,
with any senior officer. Provid-
ed he was over 80. Two ancient
bragadiers had to be forcibly
restrained.
0
Computers play a big part in
the operation of modern
thermal -electric generating
stations. Pickering nuclear
station, slated to begin operation
this year, will have eight
computers controlling the
operation of its four units.
Ontario hydro has its own
fleet of 12 helicopters to inspect
and string power lines, transport
men and materials and spray
rights-of-way.
Auctioneer
and
Appraiser
for
ALL TYPES OF
SALES
"Church and Charity
Sales conducted Free"
Bruce Rathwell
482-3120 BRUCEFIELD
Business and Professional Directory
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