ECONOMIC INFORMATION
FOR   INDIANA   FARMERS
No. 26
Division of Agricultural Economics
April, 1945
POULTRY AND EGG SITUATION
Strong consumer demand and smaller food supplies are expected to keep
poultry and egg prices in 1945 and during the first half of 1946 strong in
relation to established price ceilings, and well above prices which prevailed
during comparable periods of 1944. It appears Indiana poultry men who
have found poultry profitable over a period of years are justified in producing eggs and poultry meats and starting chicks to capacity of already
available facilities where the supply of feed and labor appears adequate.
Demand for Poultry and Eggs
Will Be Strong
Consumer purchasing power, and military and lend-lease purchases continue at
a high level while supplies of food, especially meats and poultry produces are below
1944 levels. With poultry and eggs unra-
tioned, the demand for these products at
ceiling prices will exceed available supplies
during much of the year ahead.
Non-agricultural income during the last
three months of 1944 (latest data available)
was nearly 9 percent greater than during
the comparable period of 1943 and was the
highest ever recorded. In addition to this
tremendous purchasing power, consumers
have accumulated savings during the war
of around 120 billion dollars (greater than
the 1942 national income). This back-log
of buying power will be an important factor
in keeping demand for food at a high level
during 1945 and for at least a year following the close of the war in Europe.
When the war in Europe ends, some
temporary weakening of prices of farm
products can be expected after which prices
are likely to recover and reach a peak as
high or higher than during the war period.
Shortage of Meat
The United States production of meats
in 1945 is expected to be 10 percent less
than in 1944, large'y the result of a sharp
decline in hog production. The short supply of pork is likely to extend well into
1946. In 1944 when meat supplies were the
largest on record civi'ians took 147 pounds
per capita. Even so, supplies of certain
meats were far short of demand. Civilian
meat supplies for 1945 are expected to be
115-120 pounds per capita, at least one-
eighth smaller than in 1944. In addition
rationing of meats will be more stringenr.
With high purchasing power consumers
will seek other foods. Poultry meats and
eegs, if available, will be called for to help
satisfy consumer demand. These products
being unrationed will be requested regardless of price by many.
Supply of Eggs To Be
Short of Demand
In 1944 United States egg production
amounted to 157 million cases. During the
year civilians consumed about 353 eggs per
capita, or about 122 million cases. This
left 35 million cases for other uses.
In 1945 egg production is expected to be
10 to 12 percent less than in 1944. This
would mean a production of around 140 million cases. If consumers took only the
quantity they took in 1944 (122 million
cases) only 17 million cases would be left
for other uses. It is recognized that consumers however will want more eggs if
they are available. Military and lend-lease
demand in 1945 have been indicated as high
as 28 million cases from 1945 production.
In addition eggs for hatching will require
about 5 million cases. It appears supplies
of eggs will be short of demand. This will
be especially true during the last half of
the year.