September 2010 Articles

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Just Rambling

The jousting has begun! In my last month’s “Just Rambling,” I discussed commodity being pitted against commodity (cattle producers, pork producers vs. poultry producers) concerning the new Grain Inspection, Packers and Stockyards Administration (GIPSA) proposed rule changes. When I say the “jousting has begun” I mean it has begun within the poultry industry itself. As referred to in the article “Rules Would Level Playing Field For Contract Poultry Farmers” by Becky Ceartas on page 16 of this issue the National Chicken Council has begun their divide and conquer tactics. The National Chicken Council is a lobbying organization based in Washington D C which represents the nation’s poultry companies . They have played this game many times before. Each time something in the way of legislation or regulation arises that would provide poultry growers a more equitable position when it comes to dealing with the integrators—they immediately begin crying foul. They begin contacting their grower base stating that if this legislation passes or this regulation is enacted then it will jeopardize the livelihood of all growers. This time is no different. They have come out swinging at the thought of altering the “Tournament” system of pay for broiler growers. In their “Informational Packet “which they have prepared to send out to growers they state “ the proposed rules do not ban the tournament system of pay, (but) instead mandates a redistribution of the money available in that tournament system. The proposed changes will hurt the more efficient and progressive growers—taking money right out of their pockets.” The stage is now set with this statement. They know that the majority of the above average growers (who are primarily those with newer houses or most recently updated houses and larger debts) can’t afford to make less money so they will (in most cases) continue the play just as the integrator directs it. On the other hand, the below average growers are struggling just to meet their operating expenses and debt repayment while hoping to settle above average the next sale. They are, more often than not, afraid to take a position against the integrator for fear of being dropped from the play. Now we have it—the above average, more progressive growers asking why they should take less money just to help the below average growers. On the other hand, the below average growers are hoping for more money ,but afraid to rock the boat for fear of being told to leave the stage. Under this scenario, the integrator wins. They will continue to direct the play (grow outs) just as they have in the past with growers receiving only what the integrator wants to give them– remember the integrator controls all the variables. Remember , also, that above average growers can fall from grace—just because you are above average today doesn’t mean you will be above average in the future. Many growers that have had opportunities to support a more level playing field for growers in the past and didn’t, wish today they had. Let the jousting begin ,but let it be between grower and integrator not grower and grower. Do your part to help the proposed GIPSA rules become law thereby giving growers a more rewarding part in the play (grow out).