Turkey Grower Co-op Hangs In, Despite Setbacks
Submitted by Editor on Fri, 11/20/2009 - 4:58pm.
Chris Torres
Staff Writer
Even in a down year for turkeys, Cliff Lindgren, president of the Pennsylvania Independent Poultry Producers, is upbeat about his business.
“So far, so good. It’s challenging, but I think we’re still in good shape, especially when I look at the turkey market in general in Pennsylvania.”
Lindgren, who raises nearly 60,000 turkeys in Perry County, is one of 13 farmers involved in the Pennsylvania Independent Poultry Producers, a turkey cooperative which started a few years back as a result of the farmers wanting more control of their business and a more secure future.
“We were at a point where we didn’t know what was going to happen to our integrator. And we also wanted more control of our business,” Lindgren said.
Originally, 40 farmers got together to start the co-op. Each farmer was going to contribute money to start the venture. There were also hopes of opening a processing plant.
But when it came time to put up the capital for the cooperative, only 13 farmers came forward.
The cooperative signed a multi-year deal with Cargill to market the birds.
Cargill provides poults to the cooperative and then buys them back once they are ready to be harvested.
The cooperative also provides birds to a couple of other businesses.
The bad economy and sluggish demand for turkey has thrown a wrench into the cooperative’s initial plans. The processing plant would have given the farmers a chance to market their own value-added products.
However, the plant, located in central Pennsylvania, was bought by another group.
“With the way things happened, the processing plant we were looking at was actually sold to somebody else,” Lindgren said.
With just 13 farmers, the cooperative is only capable of producing about 1.5 million birds annually. They hoped to produce much more.
“Considering the way the economy went and everything, it’s a disappointment, but not a step back,” he said.
According to National Turkey Federation Spokeswoman Sherrie Rosenblatt, recent statistics from the USDA show that overall turkey production in the U.S. will be down by about 9 percent this year.
The decline is attributed to falling demand, including exports, which have fallen by around 100 million pounds over a year ago.
More than 676 million pounds of turkey were exported last year. Mexico is the largest importer of U.S. turkeys.
Pennsylvania, which ranks in the top 10 turkey producing states, will process nine million head of turkeys this year, but that’s down more than two million head from last year.
Dave Dell and Bob Sydell of Wenger Feeds, which provides feed to the cooperative, said turkey growers, overall, are struggling.
“The turkey market right now is on the decline. Breast meat has not increased for six months,” Sydell said. “A lot of turkey is stored right now. Consumption is not really keeping pace with supply.”
Wengers works with about 15 turkey growers.
“Farmers are looking at trying to reduce production a little bit right now,” Dell said. “They are declining. They are all in tough shape.”
Even with the overall industry’s struggles, Lindgren said the cooperative is still turning a profit.
“I think by having a cooperative, we were able to get a better contract to help to ensure our supply,” he said.
The cooperative, Lindgren said, is still pursuing the idea of opening a processing plant, but nothing imminent is in the works.
Right now, members wait for a more favorable environment in which to grow.
“We would like to get ourselves in the position to do value-added. No question in my mind, it will happen, just not as quickly as we thought,” Lindgren said. “I think we’re in the position to grow and bring other new farmers on board. It’s hard to do this in a market that is declining.”
Chris TorresStaff Writer
Even in a down year for turkeys, Cliff Lindgren, president of the Pennsylvania Independent Poultry Producers, is upbeat about his business.
“So far, so good. It’s challenging, but I think we’re still in good shape, especially when I look at the turkey market in general in Pennsylvania.”
Lindgren, who raises nearly 60,000 turkeys in Perry County, is one of 13 farmers involved in the Pennsylvania Independent Poultry Producers, a turkey cooperative which started a few years back as a result of the farmers wanting more control of their business and a more secure future.
“We were at a point where we didn’t know what was going to happen to our integrator. And we also wanted more control of our business,” Lindgren said.
Originally, 40 farmers got together to start the co-op. Each farmer was going to contribute money to start the venture. There were also hopes of opening a processing plant.
But when it came time to put up the capital for the cooperative, only 13 farmers came forward.
The cooperative signed a multi-year deal with Cargill to market the birds.
Cargill provides poults to the cooperative and then buys them back once they are ready to be harvested.
The cooperative also provides birds to a couple of other businesses.
The bad economy and sluggish demand for turkey has thrown a wrench into the cooperative’s initial plans. The processing plant would have given the farmers a chance to market their own value-added products.
However, the plant, located in central Pennsylvania, was bought by another group.
“With the way things happened, the processing plant we were looking at was actually sold to somebody else,” Lindgren said.
With just 13 farmers, the cooperative is only capable of producing about 1.5 million birds annually. They hoped to produce much more.
“Considering the way the economy went and everything, it’s a disappointment, but not a step back,” he said.
According to National Turkey Federation Spokeswoman Sherrie Rosenblatt, recent statistics from the USDA show that overall turkey production in the U.S. will be down by about 9 percent this year.
The decline is attributed to falling demand, including exports, which have fallen by around 100 million pounds over a year ago.
More than 676 million pounds of turkey were exported last year. Mexico is the largest importer of U.S. turkeys.
Pennsylvania, which ranks in the top 10 turkey producing states, will process nine million head of turkeys this year, but that’s down more than two million head from last year.
Dave Dell and Bob Sydell of Wenger Feeds, which provides feed to the cooperative, said turkey growers, overall, are struggling.
“The turkey market right now is on the decline. Breast meat has not increased for six months,” Sydell said. “A lot of turkey is stored right now. Consumption is not really keeping pace with supply.”
Wengers works with about 15 turkey growers.
“Farmers are looking at trying to reduce production a little bit right now,” Dell said. “They are declining. They are all in tough shape.”
Even with the overall industry’s struggles, Lindgren said the cooperative is still turning a profit.
“I think by having a cooperative, we were able to get a better contract to help to ensure our supply,” he said.
The cooperative, Lindgren said, is still pursuing the idea of opening a processing plant, but nothing imminent is in the works.
Right now, members wait for a more favorable environment in which to grow.
“We would like to get ourselves in the position to do value-added. No question in my mind, it will happen, just not as quickly as we thought,” Lindgren said. “I think we’re in the position to grow and bring other new farmers on board. It’s hard to do this in a market that is declining.”
