A Page in Time
Januarie 1961 - Die S.a.p.v. Pluimvee Bulletin - Make The Feathers Fly
Iunderstand that the function of our Bulletin is to disseminate information to our members, and more especially matters of importance to our industry and I accordingly request you to publish the following authentic information. While I am precluded for stating the source of my information, confirmation can be obtained from the Division of Agriculture Economics and Marketing.
Canned chicken dumped on the south african market
vigorous promotion body.
Since 1958 a surplus of poultry has been produced by American growers. Due to the very high level of vertical integration in the American Poultry Industry, this surplus production continues to rise because of the structure of this business monolith, which embodies feed compounders, processors, day-old chick producers and growers.
As production rose, end prices fell, which reduced profit margins and, since every business must have a specific amount of money to pay dividends production had to rise to make up for the short fall. With the consequently rise in production, end prices fell again, which resulted in another surge of production. And so the process continues, and the life of the American Broiler Growers is not such a happy one.
To alleviate this position, a vigorous and sometimes distinctly aggressive sales drive has been undertaken on foreign markets, coupled with United States Department of Agriculture’s Aid Programmes, price supports direct subsidies and complicated foreign aid arrangements. We find that large quantities of American processed chickens are finding their way in increasing volume to World Markets at prices which are well below ours, viz. 2/6 per lb. C.I.F European port.
Boycott of our product on our former African and Far Eastern markets made life very difficult for exporters of processed poultry which necessitated a cut back in production. Now, to add to our troubles, we find the Americans covet our internal market for poultry.
Due to disease factors, uncooked poultry is debarred from entry, but cooked poultry is a free import.