Milford chronicle., 1961-09-29
Govt. Controls On
Broiler Raising
continued from page one)

during most of 1861, Mcdaniel
said that growers in mary COM
mercial broiler areas throughout
the United States are discussing
possible government controls on
production as means of raising
prices producers on the Del
marva Peninsula. a major broiler
growing area, have gone on record
as opposed to government con-
trols)
He described the broiler indus
try as unique and complex" COM
pared to other segments of agri-
culture such as the production of
milk, feed grains, and wheat. all
of which are subject to some gov
eminent control on production.
The broiler industry is composed
of various segments-eg produc-
ers, hatcheries. feed dealers, grow
ers. and professors ~ many of
whom, but not all, operate indie
pendently of each other. The diff
ficult problem is to devise meth
cd of control that will be accep
table to all of these segments of
the industry and acceptable to
Congress as WE'LL" Mcdaniel de-
clared
Another factor that will have
to be weighed carefully if a CON
troll program is established. Nc
Daniel emphasized. is the likeli
hood that as broiler prices go up.
consumers will buy more red
meats. This will encourage pro-
ducers of beef. pork and mutton
to increase their herds ard flocks,
and in two to four years, the in
creased supply of red meats win
cause broiler prices TO drop. A
satisfactory answer to this prob
lem will have TO be found If a fed
eral program is to have any long
range beneficial effect to the brOil-
er industry, Mcdaniel pointed out
Still other factors that will need
study include the question of what
basis viii be used to determine a
newcomer quota in control
system where quotas likely are
based on the past history of each
individual business. or how bust
nesses with quotas can increase in
size in order to increase efiicien-
cy, Mcdaniel said. And finally
there is the tendancy of control
programs TO result in a uniform
price level throughout the coun-
try, while regional cost advantages
may remain" he pointed out.
Mcdaniel discussed with the
poultry leaders various types of
Federal controls now being used
on different agricultural commod-
tiles. Among these are:
L. Marketing Agreement "a vol
Iuntary contract between the Sec
rotary of Agriculture and the
handlers of particular commod-
ity, designed to raise prices to pro-
ducers. The weakness here, ac-
cording to Mcdaniel. is that some
producers or handlers may not
sign the contract As marketings
decrease and prices go up. non
signers may increase production
which again would force prices
down, defeating the purpose of the
agreement
3 Marketing Order-a compuls-
DRY program. issued by the Secre
tary of Agriculture, with provis-
ions binding on all handlers in a
specified production or marketing
area Such orders are now in eff
feet on milk in many areas, in
Guiding most of the metropolitan
areas of the East Coast Market
ing orders do not establish prices.
but influence them through con
troll Of supply and quality of pro-
UUpf rpap hi ing market
3. Price Supports r. the govern
ment actually buys the product
to him on the stored product, and
will accept the stored product in
lieu of repayment of the loan.
Price support programs are of
various types, ranging from the
voluntary compliance type used in
the current feed grain program.
to the compulsory type, tafter
grower approval through referen-
dunn used to control wheat pro-
duction In other types of price
support programs. the government
buys on the open market com
modify in excess supply, diverting
it to storage or to such uses as
assistance. Pork, potatoes and
other commodities have been pur-
chased under this program when
the Secretary of Agriculture CON
sidered them to be in excess sup
ply.
IN