By Vanessa Fuhrmans
Staff Reporter of THE WALL STREET JOURNAL
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HERFORD, Germany -- As his 1,500 pigs polish off their evening meal, Ulrich Krutemeier climbs into the stall for a snuggle with his schwein. But it's clear the chemistry just isn't there. The pigs creep back nervously as soon as Mr. Krutemeier's mud-encrusted boots touch the floor. As a few of the more curious inch closer, he tickles a snout. The pig returns the affection with a bite. "Ouch!" the sandy-haired Mr. Krutemeier yelps, jerking back his lanky arm. "Only someone who has no idea about pigs would think of this," he mutters as the pigs scurry away again. That someone is the government of North Rhine-Westphalia, Germany's most densely populated state in terms of both people and pigs. Officials want to regain the confidence of meat-wary consumers in the wake of mad-cow disease and other food scares that rocked Germany this past year. Part of the answer, they say, is better testing and hygiene. Just as important is that farmers raise their animals with more of a human touch. Lest any farmer wonder how, the state's agriculture ministry spelled out the new and improved rights of North Rhine-Westphalia's six million pigs in a recent decree. A pig should get one square meter of stall space and a straw or soft rubber mat for napping. When it's time to play, the pigs must have chains or chewy toys on hand. "Balls also can be made available to the pigs for activity material," the edict states. Each pig should get at least eight hours of daylight. During the darker, shorter days of winter, farmers must compensate with lamps. But what really rankled farmers is a declaration that a farmer or farmhand must spend at least 20 seconds looking at each pig each day -- and back up the loving care with paperwork showing he has enough pighands to provide quality time. Without it, a farmer can't get a license to expand or start a pig-rearing business. Many farmers have come to mock the edict as the Kuschelregel, or the cuddle rule. So far, the rules haven't done much to bring farmers and their pigs closer. Egbert Storck, a 48-year-old farmer with 1,300 pigs in the rolling, wheat-covered hills on the outskirts of Herford, is befuddled. "What am I supposed to do exactly? Go like this?" Leaning over the fence of one of his pig stalls, he clinches his square jaw and fixes one of the pigs with an exaggerated bug-eyed stare, ticking off the seconds. Feeling the intensity of his gaze, the pig turns to hide its face behind the haunches of another. "See, they don't like it either," he says, throwing up his hands. It's not that North Rhine-Westphalian farmers aren't fond of their swine. This is home to nearly a quarter of Germany's 26 million pigs. It's the source of Westphalian ham and more than 300 kinds of sausages. Most farms are small family operations, some dating back to the 12th century. "I grew up with these guys," Mr. Krutemeier, 37, says of his pigs. As the youngest son, he inherited his father's farm, following local tradition here. To protect their livelihood, Mr. Krutemeier and other local farmers already
provide their pigs with agricultural innovations such as state-of-the-art
central heating, homeopathic medicine and even toys. After years of experimenting
with old tires, then miniature soccer balls, Mr. Krutemeier found his
pigs preferred to gnaw on steel chains and wooden blocks for fun. "If
my pigs aren't healthy, I'm not healthy," he says. |
But farmers fret that the new rules could regulate them out of business. A farmer with 1,500 pigs, for example, would need eight hours, or one full-time farmhand, to spend 20 seconds a day with each animal. Farmers estimate the rules would cost them about 12 extra euros ($10) per pig, nearly as much as their current profit. Many fear that will put them at a greater comparative disadvantage to Southern and Eastern Europe, where pig rearing is held to lower standards and prices are cheaper. Just how real the threat is was unveiled in the Herford police blotter last year: A truck that had overturned on its way to a nearby sausage factory was found to be carrying pork from Spain, sparking a local scandal. "If we were required to give every pig a reclining chair, we wouldn't have a problem with it, as long as everyone in the European Union did it, too," says Wilhelm Brueggemeier, a local farmer. For farmers, two women personify the threat: local agricultural minister Baerbel Hoehn, who drafted the edict, and her fellow Green Party member, Renate Kuenast, a spike-haired former lawyer who runs Germany's national ministry for consumer protection, food and agriculture. The Greens, who run the state and federal governments in coalition with the Social Democrats, devised the local rules and have attracted the farmers' ire. At a recent farmers' forum, bodyguards stood by with umbrellas to shield the two ministers in the event of flying produce. Named to the post after the first signs of mad-cow disease were discovered in Germany a year ago, Ms. Kuenast already has angered farmers by fingering industrial agriculture as a big part of the problem. She proposed increasing organic farming from 2.5% to 20% of German agriculture over the next decade. But even Ms. Kuenast's minor publicity stunts -- such as "adopting" a Rhineland sow named Berta and her 16 piglets -- cause farmers to gnash their teeth. "She wants consumers to think of 'Babe' when they think of pigs," says farmer Anneliese Schulte-Steffens, referring to the 1995 movie about a talking pig that narrowly escapes the butcher. "We raise pigs to make a living, not to cuddle and let them sleep on our beds." North Rhine-Westphalian agricultural-ministry officials point out the local edict is only temporary until a nationwide pig-rearing law is passed, most likely next year. But they hope it will serve as a model for the legislation. "People increasingly want to know where their meat comes from," says Leo Bosten, a ministry spokesman. "We need to make sure both animals and consumers are protected." It's too soon to say whether consumers prefer pork from pigs reared with more affection. But at Haus Duesse, a nearby state-sponsored agricultural training and testing center, farming experts are checking the pigs' reaction -- and getting mixed reviews. Nocturnal animals by nature, the pigs don't mind low lighting. But as one of the center's agricultural engineers, Hans-Joachim Luecker, turns up the glare to simulate the different levels of state-prescribed light, some start to squint and nip nervously at the others. In one stall, the pigs have taken to their soft rubber napping mat, snoozing alongside each other in a neat row. In the next, though, the pigs prefer to stretch out on the perforated concrete floor instead, relegating the mat to their group litter box. "We can make all the rules in the world," he says. "But the pigs sort out what they like for themselves."
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RELATED NOTES
1. Opportunity cost is whatever must be given up to obtain some item.
2. Supply is the relationship between the price of an item and the quantity
supplied.
3. Demand is the relationship between the price of an item and the quantity
demanded.
4. Quantity demanded is the amount of an item buyers are willing and able
to buy at some particular price.
5. Supply can change if the input costs of production change.
6. If supply decreases, shortages will emerge which leads to higher prices
and a decrease in quantity demanded.
7. A shortage means that the quantity of a good or service demanded exceeds
the quantity supplied at the prevailing price.
8. The law of demand states that, other things equal, an increase in price
will lead to a decrease in quantity demanded.
9. The price elasticity of demand is a measure of buyer sensitivity to price
changes.
10. When demand is elastic, an increase in price will lead to a relatively
large drop in quantity demanded and a decrease in total revenue.
11. Total revenue equals price multiplied by quantity sold.
12. When demand is inelastic, an increase in price will lead to a relatively
small drop in quantity demanded and an increase in total revenue.
13. The more substitutes that exist for a good or service the more elastic
demand will be.
14. Profit equals total revenue minus total cost.
15. Total cost equals fixed costs plus variable costs.
16. For more on government regulations in Germany see http://www.businessweek.com/magazine/content/01_47/b3758608.htm
17. For more on the price elasticity of demand for pork see http://papers.nber.org/papers/W6440
18. For more on pork supply and demand see http://www.globalbuyer.org/Japan/statistics/pork_supply.asp
DISCUSSION QUESTIONS
POSSIBLE ANSWERS
As the diagram below indicates, if the demand for Westphalian ham is elastic, the higher input costs imposed by German regulators would decrease supply and push up prices. When prices increase by say 18%, the quantity demanded for this ham is going to fall by more than 18%. When this very large drop in quantity demanded occurs the overall total revenue of the supplier will fall. With lower revenue comes lower total profit.
For Germans who raise pigs, now that the government is directing their farming methods, they must use the concept of opportunity cost to decide what to do next. If they choose to comply, the more time they spend following regulations the less time they will have to efficiently run their farms. If they choose to ignore the regulations they run the risk of forgoing the opportunity to stay out of trouble should the German government send out the 'hog police." German farmers could consider protests or seeking out media attention to their plight to enlist the support of German voters and consumers. Whatever decision is made it will come with a cost.
This article is reprinted by permission
of theWall Street Journal Interactive Edition. ©
2002 Dow Jones and Company , Inc. All Rights Reserved. Instructional materials
by Jack A. Chambless, Valencia Community College.