19 May 1995

Egg ups & downs

THE poultry scene during the past 12 months has been volatile with this year starting dismally for many egg businesses. The caution came from ADAS head of poultry development Dr David Charles.

He warned that the UK poultry industry must not underestimate the continuing threat of increased imports and, to stay in business, producers had to achieve high levels of technical efficiency.

He issued advice for business health to help weather the troughs in profitability which he predicted would continue to occur. That included maximising technical efficiency and negotiating sound contractual arrangements.

Tarrangements with buyers who have clearly defined markets.

&#8226 Invest in new buildings and equipment during the good years so as to enhance efficiency during the bad years.

&#8226 Where possible create business stability by diversification.

&#8226 Back the promotional efforts of trade associations, which will be of increasing importance in times of intensifying international competition.

&#8226 Carry out market research before embarking on any new projects.