GENERAL FARM PROGRAM 831 



regard to price supports for poultry and eggs were unanimously- 

 adopted: 



1. We advocate that support-price levels for poultry and eggs be 

 maintained, only as a protection against demoralized poultry and egg 

 markets. On no account should the level of support furnish any 

 incentive to produce and market low quality poultry and eggs, or any 

 encouragement of inefficient operations. We recommend that the 

 Secretary of Agriculture be authorized to determine the level of sup- 

 port in accordance with this general recommendation. 



2. We are vigorously opposed to production controls and marketing 

 quotas applied to poultry and eggs. We believe that such attempted 

 controls of 5,000,000 producers would be unsound, unworkable, and 

 extremely costly and burdensome in administration. 



3. Because of the magnitude and complexity of our industry we 

 advocate the establishment of an industry advisory committee which 

 shall be consulted by the Secretary of Agriculture for the purpose of 

 receiving recommendations on this particular problem. 



4. We strongly urge that the foregoing recommendations be put 

 into legislative effect no later than January 1, 1950, for the following 

 reasons: 



(a) As a result of the present program a surplus of eggs continues 

 to pile up in Government storage with but little outlet in domestic 

 or foreign channels. 



(6) Under the stimulus of present artificially high support prices, 

 egg producers are raising so many chickens this year that a continua- 

 tion of this support-price basis into 1950 would force the Department 

 of Agriculture to accumulate still greater quantities of eggs next year, 

 at heavy expense to the taxpayer. 



(c) Egg prices to producers in 1950 would, under the present 

 formula, be kept so high that many inefficient producers would stay 

 in production, and again lead to unmanageable surpluses in 1951. 



Mr. Pace. Mr. Edmonds, the committee unfortunately does not 

 have the time to question you, but just summarizing the statement 

 we had from Mr. Johnson and other witnesses they wish support on 

 poultry between 60 and 90 percent of parity, but you w^ant whatever 

 the Secretary wants to put it. 



Mr. Edmonds. We feel he should use his OAvn discretion based on 

 conditions in the industry. We have talked in terms of to 90 per- 

 cent. However, as I mentioned in my statement, price supports 

 should be at a ievel to protect against demoralized prices in the 

 market. I think it is generally accepted that anything below 60 

 percent is too low. 



Mr. Pace. I have no further questions; thank you. 



Who is the next witness? 



Mr. Hubbard. Mr. R. F. Frazier, executive secretary of the 

 Southeastern Poultry and Egg Association. 



Mr. Pace. Mr. Frazier. 



STATEMENT OF R. F. FRAZIER, EXECUTIVE SECRETARY, SOUTH- 

 EASTERN POULTRY AND EGG ASSOCIATION 



Mr. Frazier. Mr. Chairman, the broiler industry in this country 

 today supplies the major sources of income for tens of thousands of 

 family-size farms, and its capital investments include buildings and 



91215 — 49 — ser. u, pt. 5 6 



