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One More Thing...

by: Jill Richardson

Thu Aug 26, 2010 at 08:15:11 AM PDT


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I was just on On Point on NPR. As the show ended, I had a few last points I wanted to make but couldn't. So I will make them here.

We had the owner of a very large egg farm on the show, a man who I have no doubt is a wonderful, ethical person who is doing absolutely the best he can to produce quality, safe eggs. And he was making the point that there's nothing wrong with industry consolidation and with one farm having 6 million chickens.

Another guest was Caroline Smith DeWaal of Center for Science in the Public Interest, who spoke about the long delay in getting food safety regulation in place, as well as some of the confusion between having food safety regulated between different federal departments and agencies.

Well, no pun intended, but this is a "chicken and egg" problem. When you have this kind of consolidation with these huge farms, you also have a class of producers who can afford to influence Washington - and influence they do. So then their industries are not well regulated. In this case, you've got food safety split between departments, which is by design - it makes the regulators less efficient. FDA is chronically underfunded. That's by design too.

This isn't just with eggs, it's with all food. And that brings me to another point. One caller brought up vegan diets as a way to avoid eggs. But how about a way to avoid food? Vegans eat too, and the foods they eat also come from highly consolidated industries controlled by relatively few companies with lots of political power.

A very telling example of the problem comes from arsenic pesticides. These were popular after the Civil War until around the 1930's. At that point, food poisoning cases mounted up and many, if not most, Americans suffered from mild to severe symptoms of arsenic poisoning. In the 1950's, DDT came in to mostly replace arsenicals. The other day I looked to see when arsenicals were finally banned. The answer: they weren't. The EPA tried to have a go at banning many of the remaining legal arsenicals in 2006, and by 2009, the cotton industry had successfully lobbied them to continue allowing one of the pesticides they wanted to ban.

Some chemicals are banned. Some industry practices are banned. Some food safety procedures are in place. But until we stop this running game where the regulators are constantly behind industry because industry is lobbying government, we're still doing a lot of harm to ourselves and our environment. It's nice to ban one pesticide, but what's the use if a new toxic pesticide takes its place. It's great to put in place procedures to prevent salmonella outbreaks, but what food safety problem will happen next?

As for the question of producing safe eggs on large farms, I have no reason to assume that Stephen Herbruck, the farmer on the show, wasn't telling the truth that his eggs are safe. They likely are. But are they as healthy as possible? And what's the environmental impact of his model of business? I don't mean to target him - he seemed like a wonderful person - but there is a consequence in flavor, in health, and in environmental impact to the way we produce our food right now.

When I was in Cuba, where most food is produced sustainably on relatively small farms and then sold locally, a Cuban told me she thought eggs from the U.S. "taste like plastic." A chicken in a backyard flock provides fertilizer and eggs, and does so while disposing of bugs and kitchen scraps, thus reducing the amount of commercially grown food the chicken needs to eat. And, according to tests by Mother Earth News, these eggs will be quantifiably healthier than those you buy at the store. Is just having safe food the only standard you want, or do you want healthy, tasty food too?

Also, I have one last point. There was some talk that "you get what you pay for" and consumers want cheap eggs so they are getting them. Well, a look at historical egg prices shows a different picture. Farmgate prices for eggs have been stagnant, and the average egg farmers' profits have been zero or even negative over the past several decades. No wonder they need the volume provided by 6 million hens if they are getting so little profit (if any) per egg! But the share of the egg price that retailers take has been going up and up. Consumers ARE paying more for eggs with each passing year. That money just isn't going to the farmer. If consumers are paying more for eggs, shouldn't they be getting something more for their money? I'd rather see that money go to farmers so they can make production safer, more humane, and more sustainable, not to the retailers so they can stuff it in their pockets.

Jill Richardson :: One More Thing...
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One More Thing... | 15 comments
let me do digital PR for you (4.00 / 3)
n/c.I love what you do and others need to hear what you say and it will help get you more paid gigs.I'm got a budding business doing digital branding and right now I am working with 2 authors.Shoot me an email and we can set aside time to talk....

My 2 cents..
short term

We need one agency that over sees food safety.

Long term

Taking $$$ of out politics

With criminals like Decoster, fines aren't going to help because he sees them as a way of doing business. We need to SHAME him into doing the right thing by highlighting someone or someones that got sick from eating HIS eggs ESPECIALLY if its a kid.Believe me its PR he DOESN'T want

Education about costs of eating cheap foods


I don't think anything works for DeCoster (4.00 / 2)
short of prohibiting him from being in the livestock business altogether.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
prices (4.00 / 2)
The retail vs. farmgate/wholesale price gap is so startling that I wonder if something is wrong with the data. Does it make sense? What would account for it? Retail consolidation increases the power of a retailer to control both prices paid and prices received, but the standard economic model would suggest that increasingly massive producer consolidation would increase producer returns also.

I don't understand the gap.


It confused me at first (4.00 / 2)
Until I realized that these are all averages. So you've got some producers making money and some losing money, but they are all hanging on for dear life and many go out of business. It explains the trend towards larger farms with more chickens.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
Does not explain the price gap (0.00 / 0)
does it? And it does not explain farmgate/wholesale prices that have been flat for 35 years. Furthermore, numbers at Poultry Yearbook: Dataset are presented as is. In constant dollars adjusted for inflation, a dollar received by a farmer in 2004 was worth less than half a dollar received by a farmer in 1975, from table0064.xls.

It must at least be considered that the reported farmgate and wholesale prices are manipulated byproducts of vertical integration. Let's be careful what we mean by "producer". A contract grower is screwed, but I bet the vertically integrated operation makes out like a bandit, whether it gets eggs from a contract grower or produces its own eggs.

As for the price gap, USDA ERS publishes a statistic called "retail to consumer spread". The egg spread increased by a factor of about 3.5 from the beginning of 2001 to mid-2005 (YAY GWB!) I still don't understand how or why this happened. (I assume this spread is the difference between the price paid by the retailer and the price paid by the consumer.)


[ Parent ]
Count, seriously (4.00 / 1)
from what I've heard from MANY ag industries, it's not terribly abnormal for farmgate prices to stay flat (not accounting for inflation) for decades, pathetic as that is.  

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
I know. (0.00 / 0)
I'm saying it's fucked up but not abnormal. How's that for creative English?

[ Parent ]
Cuban chickens (4.00 / 2)
Were you able to have Cuban eggs, and did you notice a taste difference if yes?

I did eat eggs but they were likely from the US (4.00 / 2)
since I ate them in govt run hotels. The thing about the local organic food in Cuba is that it goes directly to the Cuban people and much of it doesn't go to the hotels for the tourists.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
On Point (4.00 / 3)
Jill - I heard you on NPR today.  You made some great points and in this post as well.  You had lunch in our barn last fall while in Iowa.  Last September we held a screening of the movie Fresh (one of several good movies on the food safety topic).  Since then we have joined a local CSA and, more importantly, now buy our eggs locally (they DO taste better).  Educating the public is important and I am glad you were chosen to express your views on food safety.  Thanks for all that you do.

hey! (4.00 / 2)
I remember visiting! Very cool :) And thanks.

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
Who's making money from these factories? (4.00 / 3)
Regarding this snip, I'm confused.  How can it be a producer like DeCoster can afford millions in fines and lobbyists, and yet you say in your post the retailers are reaping the profits vs. the farmers.

Well, a look at historical egg prices shows a different picture. Farmgate prices for eggs have been stagnant, and the average egg farmers' profits have been zero or even negative over the past several decades. No wonder they need the volume provided by 6 million hens if they are getting so little profit (if any) per egg! But the share of the egg price that retailers take has been going up and up.


possibilities (4.00 / 1)
I'm beginning to think that perhaps the answer to your question (and mine) could lie somewhere in the vertical integration that has accompanied consolidation, and in fancy paperwork. For example, an integrated operation can show zero profit on the egg production facility if it makes a bunch of money from other facilities that sell feed and pullets or ready-to-go layers.

Many additional steps are necessary after the eggs are laid and collected. They need to be washed, graded, and sorted. They need to be packaged. They need to be warehoused and distributed. It seems to me that a lot of room exists in this chain for creative accounting, and perhaps the "farmgate" and "wholesale" numbers are phony. If an integrated company owns or has substantial financial interests in grading facilities, packaging facilities, perhaps transportation companies, etc., we see a possible explanation for the steep rise in retail prices in the face of flat farmgate/wholesale costs.


[ Parent ]
Well the amount of money the farmers make (4.00 / 1)
are averages. Some people make money, some lose money. He seems to be making money. It seems he might also have feed milling and perhaps processing businesses, which can allow him to lower costs of production and reap more economies of scale. And if you're making nearly nothing per egg or per dozen eggs, but you've got a million chickens (or more), then you are making money due to the high volume. Does that make sense?  

"I can understand someone from Iowa promoting corn and soy, but we are not feeding the world, we are feeding animals and soft drink companies." - Jim Goodman

[ Parent ]
salmonella found (4.00 / 2)
Salmonella found on 2 Iowa egg farms

By MARY CLARE JALONICK, Associated Press Writer - 15 mins ago

The officials said investigators found salmonella in chicken feed that was sold to both Wright County Egg and Hillandale Farms. More than 550 million eggs from the two farms were recalled this month after they were linked to as many as 1,300 cases of salmonella poisoning.

Sherri McGarry of the FDA's Center for Food Safety and Applied Nutrition said the tests indicate that contaminated feed is a source of the outbreak but possibly not the only source.



One More Thing... | 15 comments
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