' I'« •*
12—Lancaster Farming, Friday, Oct. 26, 1956
»I i I ‘
About Milk Margins? USDA Centers
Efforts on Solving This Problem
(Note; This article from Agri
culture Research)
OF milk margins?
(IJSDA)
ji ,
Farmers and farm leaders have
laJS&htbeen showing an under
standable hveher-than-usual in
terest in marketing margins
those frequently elusive gaps be
tween what the farmer gets for
his products and what the con
sumer pays for them. The in
creased concern has resulted in
intensified USDA research on
widening market margins Much
of this recent effort by the Agri
cultural Marketing Service has
been on dairy products, parti
cularly fluid milk.
.Dairying margins were not
hard to figure out in the days
when milk was- sold primarily
just as milk in single quart
bottles delivered to consumers*
homes. Things are no longer*
the same. Long-established
trends in marketing have been
giving way to new develop
ments reflecting the tastes and
habits of American consumers.
Now, there are homogenized
and special milks as well as
regular milk. Half-gallon and
gallon containers are growing
in use. In Chicago and Akron,
milk sold in gallon jugs consti
tutes 1-3 of all fluid milk sales.
In some other markets up to
half of the milk is sold in half
gallons. Sales of milk in glass
containers are declining. Use
of bulk dispensers in restaur
ants is increasing.
As if this were not enough,
retail stores are now more in the
picture, too. Independent route
men are numerous in some mar
kets. Also, at the country end,
receiving stations and over-the
road transportation are often
owned and operated indepen
dently.
These new price-spread com
plications are currently under in
tensive study in Chicago market.
AMS researchers eventually ex
tflStt to cover other cities as well,
tcPget an indication of who gets
what share of consumer’s money
agent on fluid milk.
Another important aspect of
this research on fluid-milk mar
keting margins is a continuing
study of operations reports of 80
dairy plants. These reports are
received quarterly and analyzed.
Results are published as USDA
Fertilizers
Farms Gardens
Lawns
Cocoa Bean Shells
Organic Plant Food Co.
GROFFTOWN RD.
Ph. Lancaster EX 2-4963
RALPH F.KLENE
405 S * BROAD ST ‘’ LITITZ
Paul Cluck, East Petersburg
• ROOFING
• SIDING
• ROOF COATING
• SPOUTING
• STORM DOORS AND WINDOWS
We will continue the same high quality material
- and workmanship as before—better if possible.
r ALSO CALL US FOR
★ Repairs ★ Remodeling ★ Concrete
s Work ★ New Construction
See Us At Our Stand At Root’s Country Market
Every Tuesday Evening
Call: Lititz MA 6-9456 Lane. LO 9-1485
reports at intervals. Reports now
being prepared will show
ohan"e | 5 in marketing costs over
the last 4 years. They will also
Kbmf how trends may differ
among tirms of different sizes
from all over the country.
Data so far shows that in
dividual firms, almost without,
exception, have Increased their
volume of business from 1952.
to date. Further analysis will
show differences in costs
among different types of firms.
For example, firms specializ
ing in retail trade will be com
pared with firms specializing
in wholesale trade. A compari
son of glass and paper contain
ers will be made and the re
lationship between volume of
business and distribution of
costs will be analyzed.
While present research on
fluid-milk marketing margins
forges steadily ahead, past work
has already resulted in, much
valuable information.
Agriculture Economist JL. F.
Herrrmann and his associates
found out that between 1950 and
1955, the margm on single quarts
of milk delivered to homes went
up 27 per cent. On single quarts
sold through stores, however, the
margin went up only 21 per cent.
Margins on milk in gallon jugs
averaged lower on half gallons
and single quarts. It is doubtful
if the gallon jug is a less costly
form of packaging than the single
quart, but the pricing of gallon
jugs may be explained on the
same basis as quantity discounts
offered on single quarts. These
discounts were given on home
delivery routes in 77 markets.
Margins on 2-quart and 4-
quart purchases were lower than
on single quarts. But the margin
on single quarts was higher in
cities having a discount plan
than in cities without such a dis
count. AMS economists say that
fluid-milk margins could be more
.accurately measured on the basis
of an average size of purchase
rather-than on a single quart.
On the basis of single quarts,
the retail price of fluid milk in
the 3 years 1947-49 in this
country averaged 19.9 cents a
quart. Farmers received 10.6
cents, leaving 9.3 cents for dis
tribution. Last year, out of a
retail price of 22.9 cents, farm
ers got 10.2 cents, and 12.3
cents went for distribution. A
familiar story of rising costs
and lowering receipts for farm- >
ers is told by these figures.
They sbow need for more mar
keting analysis to determine
further price breakdown. And
they establish the basis for
constructive recommendations
on price changes where neces
sary.
AMS researchers are studying
not only margins but also what
it costs to market fluid milk.
Greater efficiency for processors
and distributors should come
about as a result.
Here are new officers and assistant offi
cers, with advisors, of the Groundhog
Chapter, Future Farmers of America,
named Oct. 11 at Southern Lancaster
County Joint Community High School.
Front row, left to right, are Dale Shirk,
chaplain; Raymond Deiter, sentinel; Clair
Carter, secretary; Robert Bucher, presi
dent; Dick Herr, vice president; Ralph
Kreider, treasurer and Kenneth Redcay,
Farm Calendar
(If yon wish your Coming
Events listed in these col
unis, write a card or letter
to LANCASTER FARMING,
Quarryville, Pa. Be sure to
include name of sender,—
Editor).
OCTOBER
Oct. 20-27 American Royal,
Kansas City, Mo., national Fu
ture Farmers of America con
vention.
Oct 27 Society of Farm
Women No. 5 will meet at Kauff
man’s Tea Room. Guest of soci
ety will be member of Society
No. 27. Dr. Caleb Bucher will
speak
Oct 27—'Fulton Grange, Hal
lowe’en Party.
Oct 27—Oxford Grange youth,
Hallowe’en Party.
Oct 30 Pomond Grange
guests of Ephrata Grange; Berks
County Grange in charge of pro
gram, BnckervDle Fire Hall.
Oot. 30 Farm Women So
cieties aid Christmas seal prep
aration, Rossmere Sanatorimu.
Oct. 31 Lancaster County
Red Rose Baby Beef and Lamb
Club meets at John Neff School,
Neffsvdle, 8 pm.
NOVEMBER
Nov. I—Farm Women 20,
home of Mrs. Glenn Knecht, RX)
Kirkwood, 2 p.m.
Nov. 3 Feeder Calf Sale,
Lancaster Stock Yards, ,
Nov. 3—County Convention,
Lancaster County-Farm Women’s
Societies.
Nov. 3 Feeder Calf Sale,
Nov. 23-Dec. 1 International
Livestock Exposition, Chicago.
Nov. 10—Farm Women 6, box
lunch, educational room. First
National Bank, Elizabethtown.
Nov. 10—Farm Women 1 meet
with Mrs. C. H. Nissley, Lititz.
Nov. 13 —Farm Women 22 en
tertain Farm Women 12, Pequea
Church of the Brethren. 1:30
p.m.
Nov. 14 Farm Women -16
meet, chapel of Middle Octorara
Church, poverty party, covered
dish supper, 7 p.m.
Nov. 15 Mail (Christmas)
deadline for overseas service
men.
Nov. 17 Farm Women 12
30th anniversary banquet, Mor
ton’s Restaurant, Morgantown. -
Nov. 20 Lancaster County
Holstein Banquet, War Memorial
Building, Leola.
Nov. 29—Fulton Grange 66,
play, “An Old Fashioned Mo
ther”.
Nov. 30—Deadline, to sign un
der Conservation Reserve Con-
(harden Spot FP& Elects
Lard Purchases Week ~
Of October 17 Near
3 Million Pounds
Washington (USDA)
The U.S. Department of Agri
culture purchased 2,934,000 lbs
of lard in the week to Oct. 17
to help hog producers by encour
aging additional consumption of
■this product in other than nor
mal outlets. Purchases under the
continuing program amount to
8,918,000 lbs.
Price ranges per lb for pur
chases in the week beginning
Oct. 15 by geographical region
and number of carlots (36,000
lbs of 3-lb tins and 50,000 lbs for
50-lb tins) by each region fol
low: Southeast 17 99 cents for
12 carlots of 3-lb tins; Midwest
16.95 to 17 25 cents for 24 car
lots of 3-Ib tins and 14.20 cents
for 9 carlots of 50-lb tins; and
Southwest 17.36 to 17.62 cents
for 33 carlots of 3-lb tins.
tracts of Soil Bank,
JANUARY, 1957
Jan. 14-18, 1957 Pennsyl
vania Farm Show Week,, Farm
Show Building, Harrisburg, Pa.
Jan. 13, 1957 Poultry Fed
eration’s Annual Farm Show
Banquet 6:30 p. m. Penn Har
ris Hotel, Harrisburg, Pa.
Jan. 14-18—Pennsylvania Farm
Show, Harrisburg.
LANDIS STONE MEAL CO.
Consult Us For The Best -
WHITE LILLY ALL PURPOSE MINERALS
Agricultural Ground Limestone Hard Poultry Grits |
Feed Mixing Calcium Calcium Stable Grits |
Lime Spreading Service 3
RHEEMS, PA. |
Call Elizabethtown 7-29(11 Night Calls 7-2906 ||
Your Consideration
and Support Will
Be Appreciated.
EDWARf) G. WILSON
Democratic
Candidate for Congress
reporter. Assistants stand immediately be
hind, left to right: Ralph Bitler, advisor;
Frank Herr, Darrell Lewis, Roger Roland,
Harold Clark, Bill Jackson, Charles Rich
ardson, Gordon Herr and Advisor, Jackson
Owen. Also attending were Robert Ecklin,
past president, who presided; Richard
Hastings, treasurer last year, and Joe
Martin, reporter last year. (Lancaster
Farming Staff Photo).
All prices are on a per lb
f.ob plant basis and the over
all price .ranges were from 16.05
to 17 99 cents for 3-lb tins and
14.20 cents for 50-lb tins. In
making awards, consideration
was given to area price variation
in relation to transportation
costs for distribution. In total,
bids were received from 12 bid
ders who offered a total of 7,-
860,000 lbs
Approximately $l5 million of
Section 32 funds will be expend
ed for purchases to date
i Some very scientific chaps in
sist that the inside of the earth
isn’t as hot as it is claimed. In
our unscientific and humble
opinion neither is the outside
Baltimoi e Beacon.
MAR-GRO Vitamin Supple
ment Your cattle and hogs
need
DUTCH BELL for Dairy
BETTER B1?EF for steers
and
TRIPLE RICH for Hogs
We also have the famous
DAN PATCH HORSE
POWDER
manufactured by Mar-Gro
Mfg. Co., R 2 LANC.
AARON S. MARTIN '
NOT SO HOT
DISTRIBUTOR
EAST EARL