17/09/2002 RSS Feed

Pig keepers: Entrepreneurs with plans for the future! A comment by Bernhard Bonekamp

Agriculture is a heterogeneous area of business. Every farm is unlike the other. Approximately 100,000 farmers in Germany are roughly keeping 20 million pigs. But even if in future many of the farmers will leave their business due to the changes in structure: the 10,000 ISN members (and many others) are facing a sound future.
Such a large number of farmers will make fail any attempt to have the number of pigs at each farm controlled voluntarily. For more than 100 years now, the state has controlled the agricultural commodities markets. Today, the state wants to rid itself of this task which had originally been meant to secure the food safety, for the population.
The prices and volume of grains, beef and milk today are still controlled by the state.
This led to a mentality of wailing and complaining. But instead of complaining, one should best tread the path towards free-market economy – whereto the way goes anyway.

As regards pigs and potatoes, we do have the free market with all its risks and possibilities. Here, the only thing demanded from the state is to eliminate any distortion in competition! We’d rather not ask for any kind of intervention on prices.

Following the rules of the free-market economy, periods of being in the red belong to the trading in busy markets. Which also goes for the closing down of washed-out businesses! Modern entrepreneurs do know about the price risk, they control their prices by means, for instance, of the WTB (Warenterminbörsen = automated exchange for commodity futures) and other economical instruments. Both the mature plans of production and a realistic valuation of the market also play their role in surviving! I have sold pigs for nearly 30 years now, and I made it through 12 periods of price depression. There were, however, just as many periods giving good prices. I was successful in the business, because I continuously kept going on an optimistic and realistic basis when developing it.

Moaning about the red (slaughters) and red-green (politicians) just clouds over the sense for realism! What makes up the entrepreneur is acting. Complaining doesn’t help – do invest in your future instead!

Give your vote to the politicians who stand for the free market and for competition!
Be on your guard against politicians who promise to pay subventions!


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