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Reasons Behind
Low Turkey Prices
Why are turkey prices so low?
The answer to that question as Dr. R. C. Krueger, poultry marketing specialist at VPI, sees it, lies on the supply side of the picture.
Prices for the past few years have been favorable. It is relatively easy for people to get into turkey farming, or at least to raise some turkeys as a side line. Producers in general have been increasing the size of their opertions because larger flocks are more economical.
This constant increase in supply lias caused the markef to reach a saturation point—this point actually was reached last fall. Prices did not fall drastically at that time, however, because thousands of turkeys were placed in cold storage.
The size of the turkey crop again this year had a depressing effect on price. Futhermore there are still 56,000,000 pounds of turkey in cold storage held over from last year. The result is that the already depressed price from this year’s supply is depressed still farther from last season’s holdover.
Dr. Krueger says if growers had been willing to sell their turkeys at a little lower price last year instead of
85.7%