20—Lancaster Farming, Saturday. July 17,1971
Economist Explains Need for State Milk Resale Price System
By Dr. Paul E. Hand,
Inter-State Coop
Secretary-Economist
Recently, when I returned to
the office after a hearing in
New Jersey, a local television
personality had requested I call
the station.
When I reached the office,
they wanted to know why, with
Federal Orders setting Class I
and Class II prices, farmers
wanted the State of Pennsyl
vania to set resale prices.
This was followed with the
question of the value of the
Pennsylvania Milk Marketing
Board when resale prices were
higher in Pennsylvania than in
New Jersey.
In order to effectively sup
port and defend resale price fix
ing by both the States of Penn
sylvania and New Jersey, sound
logical answers must be pre
sented to each of the above
questions.
First, basic to a regulated
class price system is a federal
order. A federal order is neces
sary to classify and price all
milk moving in inter-state com
merce. This method provides
basic stability to the industry.
However, a federal order
does not provide the answer to
all the problems of pricing and
marketing milk.
We need our state orders for
the following reasons:
1. In addition to large nation
al chains and dairies, local out
lets are necessary for a low cost
distribution system. This should
include full service or full line
milk dealers.
A full service dairy serving
schools, stores and home de
livery routes has a more even
requirement for milk needs on
a weekly basis and usually on
an annual basis. Thus, less re
serve or surplus milk is needed
to furnish this type dairy with a
sufficient quantity of milk for
its needs.
This reduces the amount of
reserve or surplus milk and the
resulting pressure for surplus
milk to increase Class I prices
in order to improve the blend
price A proper resale price
structure is required to protect
the full service milk dealer.
2 Milk is a unique com
modity, different in its total
production and distribution
characteristics than any other
product of commerce Milk is
highly perishable and deterio
rates in quality very rapidly.
Farmers must milk cows twice
daily or serious health conse
quences or loss in income will
occur It is imperative that mar
kets be available to receive the
milk daily.
A system of resale price mini
mums, which results in a stable
market, contributes to confi
dence and certainty in the
minds of farmers and dealers,
should make both farmers and
dealers feel that each will re
ceive a just and reasonable re
turn for his product under such
unique circumstances.
3. In addition to the unique
nature of the product, dairy
farmers are characterized by
unique production circumstan
ces. The large fixed investment
either freezes dairymen into
the business or permits entry to
only those with large capital re
sources. Dairy animals have less
than a “salvage” value when
sold for beef, and dairy build
ings have little or no alterna
tive use.
Due to the considerable in
vestment required and the
complexity of production con
ditions, a stable, healthy dairy
industry is a necessity in order
to provide a continuing supply
of milk at fair prices.
4. Federal orders are not the
panacea for dairymen. An ex
pert in the USDA observed the
following:
“Federal Milk Orders are
only one of the devices to help
producers through their co
operative associations to help
themselves to better marketing
conditions. It is important to
remember that no Federal Milk
Order guarantees any farmer
a market for his milk. Neither
does it guarantee to the produc
er who is able to maintain a
place in the market, a price for
his products which will assure
him of any particular income
standard.
“What the Federal Order
does is provide a framework
and a set of rules by which a
farmer can secure returns com
mensurate with existing mar
Public Auction
50 HEAD OF HOLSTEIN
THURS. NIGHT, JULY 22,1971
storting 8:00 p.m. sharp
SALE LOCATED 5 MILES NORTH OF RT. 222
ALONG 897, 2 MILES NORTH OF REINHOLDS,
These are all upstate cattle some strictly fresh and the
balance are close Aug. & Sept. Cows the right kind for
replacements for fall milk. If in need of fall milk, see us. Will
also have a few good feeders.
HEALTH CHARTS NITE OF SALE
Randal Kline Auctioneer
Vernon and Ray Kline Owners
PHONE Area Code 215 267-2368 or 267-2298
Not Responsible For Accidents
Sth ANNUAL INKA SALE
BRADFORD COUNTY
Friday Night, July
8:00 P.M.
Location Troy Fair Grounds, Troy, Penna.
Holsteins Selling are cows by local top breeders. Some from
untested and unclassified herds. Also some from New York
state.
These include
• From Raymond Goeringer a fresh Clyde Hill Master King
Fobes milking 90 lbs. per day.
• Two Irvington Pride Admiral dts. both from Reflector
Dams, IVG 88,1 G Plus 84 2 yr. old.
• Also a third Pride Admiral never classified and due sale
time. All three are top cows.
• Three all Pennsylvania Senior Heifer Calves from 1970 are
selling. Sired by Kingpin and consigned by George Page,
Jr.
• Mel Peifer sends two 1 is VG as a first calf due with
second calf Aug. 9. Piney Hill Majority bred heifer from
VG Ivanhoe Dam with 777 fat.
• Bob Tillinghast sends a real nice 2 yr. old fresh and milk
ing over 60 lbs. daily. Her Dam has 27,027 milk. Next Dam
20,451 milk, 3rd Dam 20,537 Milk, 800 fat.
• Also selling a Kingpin from Reflector Dam. A VG 88 4 yr,
old due sale time.
• A Marquis dtr. due in Aug.
• A Bluegill Reflector Flame, 2 yr. old from a 23,064 Milk
867 Fat Dam.
• From Richard Kingsley a Hagan Heifer calf that goes in
direct maternal line to Admiral Star Nancy. Excellent and
Gold Medal Dam.
Also many other fresh cows. Some with calves, show cow
prospects, etc., etc. selling.
Attend this year’s sale and become one of our satisfied custo
mers.
Tom and Ernie Young
Troy, Pa.
Ph. 717-673-8659
or 717-673-5094
keting conditions. The amount
of such returns depends on how
good or bad marketing condi
tions are; and, as you know,
there are numerous ways in
which producers, acting
through their cooperatives, can
seek to influence the market.”
In this area, we have sought
and obtained the help of state
resale price fixing to complete
the job. Such regulation is still
necessary.
5. Unreasonably low resale
prices in New Jersey are not in
the public interest. The largest
dealers selling in New Jersey
(Continued on Page 21)
Don’t Miss This Sale.
Refreshment Stand
Auctioneers
Refreshment Available
CLUB SALE
23, 1971
John Merrymon
Sparks, Md.
301-771-4674
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LANCASTER FARMING
P.O. Box 266 Lltill, Pa. 17543
PUBLIC SALE
Complete Milking Herd Dispersal of
Registered & Top Grade Holstein
Cows & Milking Equipment
Thursday, July 29, 1971
Located in the ViHage of New Park, York Co., Pa. approx.
Yz mile off Rt. 851. Watch for arrows.
34 Head
23 head of registered & 11 head top grade Holsteins. This is
a very fine young herd most of which are in their Ist & 2nd
lactation. A few samples of the quality of cows in the sale are a
registered Ivanhoe granddaughter with 17,481 milk & 720 fat;
another Ivanhoe granddaughter with 17,042 milk & 637 fat; a
registered Hector daughter with 16,189 milk & 820 fat and
many other fine blood lines in the sale such as Ivanhoe Jack,
Romandale Performer, Emporer Duke Archie and 15 or more
cows with Ivanhoe breeding. Herd is on DHIA and last years
ave. was 13,513 lbs. of milk with 520 lbs. fat.
Herd will be tested within 30 days and will be eligible for
interstate shipment with individual health charts. There will
be approx. 12 head fresh by day of sale and where necessary
will be checked for pregnancy. Don’t miss this sale for some
very fine herd replacements & foundation stock.
Mojonnier 325 gal. vacuum tank, 2% HP Bremier com
pressor, dumping station with approx. 50 ft. of glass pipe line,
2 units Surge 50 lb. size milkers & straps, heavy duty Model D
Surge milker pump completely overhauled with a 2V2 HP
motor, extra Surge pulsator, litter carrier complete with good
tub & approx. 150 ft. of track with 2 switches, Jamesway metal
feed cart, 2 strap on milk stools, 50 gal. electric hot water heat
er, stainless steel double drain tubs, drain table, 84 in. snow
bucket fits most any manure loader. v
Auct. note: sale order, will be dairy equipment first,-fol
lowed by cattle.
Terms: cash or good personal check. Sale to be held under
cover rain or shine. Lunch available on premises.
S. GUY & DAVID H. ALLEN, owners
Robert L. Sechrist, auctioneer
Fawn Grove, Pa. Ph. 382-4379
Not responsible for accidents
ot 10:00 A.M. Sharp
Dairy Cows
Dairy Equipjment
34 Head