Milk Price Questions & Answers
(Continued From Page 8)
cents' for butter (at Chicago) and
with average yields and 1972
manufacturing margins, cheese
plants could afford to pay far
mers $5.54 per hundredweight for
milk of average test, while
butter-powder plants cpuldrfford
to pay only $5.04 - resulting in an
average of $5.29 - the announced
support price. Thus, cheese
plants will have a 50-cent per
hundredweight “break” if, and
when, the USDA dairy support
program “kicks in”.
The government rationalizes
this “price break” for cheese
plants on the basis of en
Martin's
UMESTOHE
Be sure yw appftf eosutfi
The new higher-powered fertilizers often require
more lime each application to maintain a neutral
soil that tests to pH7.
IVAN M. MARTIN, INC.
Blue Ball, Pa. 354-4125
Gap, Pa. 442-4148
THERE ARE
MORE THAN
THREE SIDES
TO THE
HOG
CONFINEMENT
QUESTION
5m Dutchman.
!JS!a u.s.industries company.
And that rnakaa » world of dlffaranca.
EASTERN BRANCH
2X5 Oilier Ave., New Holland, Pa. 17557
couraging cheese production, to
supply consumers an alternative
to meat, and allay consumer
criticism of high meat prices. But
the butter-powder segment of the
dairy industry views the cheese
“price break” situation as a
calamity, since it means butter
powder plants would have to pay
50 cents per hundredweight more
than they could afford to do at
“support levels”, to compete for
milk. Since net margins to butter
powder plants are only a fraction
of 50 cents per hundredweight,
they obviously could not afford to
do this, and would soon be in
serious financial trouble." This
t «
Nearly ten years of testing and farm ex
perience have taught us that there are
many sides to the question of which
type of finishing facility is best for the
hog producer. Many producers favor the
open-front, gravity ventilation type of fa
cility. We have all the Big Dutchman
equipment necessary -for the open-front
facility. Other producers favor a total
environmental control finishing facility.
Such a facility provides greater control of
the hog’s environment, whatever the cli
matic conditions outside, through the Big
Dutchman Evap-O-Pad ventilation system
and the use of partial slats.
Open-front or total*, environmental con
trol; let us help you put it all together!
Whichever side of the question you take,
we have the equipment you need.
“price misalignment” would hit
the Wisconsin dairy industry
particularly hard, since
Wisconsin is a major butter
powder production state.
Thus, to preserve stability in
the dairy industry, the
misalignment of butter-powder
versus cheese “support” prices
should be corrected. This could
be done by raising skim milk
powder purchase prices another
6.2 cents per pound (to 43.7 cents
per pound). This would still be
considerably less than the
current commercial price of
about 45 cents per pound so would
not necessitate government
purchases. This increase in skim
milk powder support prices
would raise the price butter
powder plants could afford to pay
for milk to $5.54 per hun
dredweight for milk of .average
test - the same price as cheese
plants can afford to pay. This
would, of course, also raise
support prices to $5.54 per hun
dredweight - approximately 79
percent of parity, as contrasted
to the current 75 percent of
parity. However, with the sub
stantial increase in farm costs
that are occurring, this does not
appear to be an unreasonable
level. Most dairy organizations
have been requesting a minimum
support of 85 percent of parity.
Question: What is the ad
ministration’s position on the
dairy price support program?
Answer: The administration is
seeking authority to reduce milk
support levels below 75 percent of
parity, the present legal
minimum, and to phase out
nearly all supplemental
*LLY
.OSED
*NMENT
T ROL
Phone 717*354-5168
Lancaster Farming, Saturday, May X9„1973
payments to farmers over a
three-year period, beginning in
1974. With soaring production
costs, farmers naturally question
this proposal.
The administration is also
studying a 50 percent increase in
cheese import quotas, which
Publicizes
Secretary of Agriculture Earl
Butz, American Egg Board
President Dr. L. A. Wilhelm, and
eggs in general, enjoyed
nationwide newspaper exposure
as Associated Press and United
Press International released
wirephotos and stories of a high
level omelet cooking lesson.
The occasion was the USDA’s
“See and Taste” egg program
conducted by AEB and hosted by
the USDA Plentiful Foods staff in
Washington on April 30. At the
event Secretary Butz received
omelet making instructions from
former schoolmate Wilhelm to
promote eggs as a Plentiful Food
item and an inexpensive alter
nativejo higher priced foods.
As flashbulbs popped, the
Secretary discussed with
Wilhelm the economy and
nutritional value of eggs and
their ready availability. This
information, along with photos of
. Secretary Butz behind the skillet,
was picked up by every
significant metropolitan
newspaper including the front
page of the high-circulating
“New York Post,” plus hundreds
.of smaller newspapers across the
country. A photo and story also
appeared in the May 7 issue of
“lime” magazine.
The “See and Taste” program
was an omelet workshop con
ducted by AEB’s Home
Economist Janet Salstrom, and
Eastern Representative Howard
Helmer. Following a brief
demonstration, 140 USDA per-
sonnel also made their own
omelets for lunch while learning
about eggs. The purpose of the-
P. L ROHRER & BRO.. INC.
SMOKETOWN, PA.
would bring in an additional 60
million pounds of cheese in the
April-July, 1973 period. Dairy
groups also oppose this on the
basis that the additional cheese
imports would depress cheese
and milk prices, while production
costs continue to increase.
Butz
event was to introduce USDA
staff Home Economists, In
formation Specialists, Program
Managers, etc., to AEB’s per
sonnel and to learn firsthand
about the Board’s egg program
and promotional plans.
the
pnxz
■ BARN CLEANER
Phone Lane. 397-3539
Eggs
9