—Lancaster Farming, Saturday. November 17,1973
8
Inter-State’s Honan Urges
Support for Milk Promotion
"Negotiating milk price
premiums is no baligame," Dr.
James E. Honan, general
manager, Inter-State Milk
Producers’ Cooperative, an
nounced to the delegate body on
Wednesday. "To negotiate today
you have to use fthat economic
strength you have. If you, as
members, want your cooperative
to be able to continue to negotiate
sale of your milk and its price,
you must forge a strong
adherence to your membership
responsibilities.”
Honan told dairy farmers who
are members of Inter-State Milk
Producers’ Cooperative they
must continue to work for better
understanding and the need to
'stick together’ in negotiations.
The general manager an
nounced that since the inception
Inter-State Head-
Urges Dairymen
To Work Together
“Each year sees the need for
all cooperatives to work
together,” asserted Lester C.
Jones, president, Inter-State Milk
Producers’ Cooperative, at its
annual meeting held at the
Marriott Motor Hotel, City Line
Avenue, Philadelphia, Pa.,
November 13 & 14. “The pricing
situation of the past year; the
fight to keep imports from
destroying our markets; the
great effort in promotion and
advertising which has increased
consumption of our product; the
problem of coping with en
vironmental problems - all need a
unified effort of the nation’s
dairymen.”
“With a brighter picture before
us on the price of our products, I
cannot help but bring to you some
of the dangers facing us in the
market place as a result of these
so necessary price increases.
Historically, as prices have risen,
consumer resistance has lowered
our Class I sales,” president
Jones explained.
“A year last April, we, in
Federal Order 4, started finan
cing an advertising and
promotion program. Smce that
time, Class I sales in our market
have shown an increase. This is
of the Order 4 Advertising and
Promotion Agency seventeen
months ago, the program has had
an income of $3,034,000 and ap
proximately 20 percent has been
spent for Dairy Councils in the
three markets - Philadelphia,
Baltimore and Washington, D. C.
The balance was used for
national promotion through
UDIA and local radio, TV and
newspaper advertising.
“It is the judgment of all of us
that this advertising and
promotion program has certainly
been helpful in improving our
Class I sales throughout the
market,” asserted Honan. He
strongly recommended to those
in attendance that each
dairyman continue his support of
this program in the future.
Honan said that if we lose milk
true not only in our market but m
other markets where similar
programs are in effect.” Jones
stressed the fact that with the
natural resistance to higher
prices, dairymen must redouble
efforts to maintain sales.
“A few years ago we were quite
concerned by the threat of ‘filled
milk’. At that time it did not
materialize - however, recently a
court has ruled that the federal
laws against the interstate
shipment of this product have
been declared unconstitutional
and the government has decided
not to appeal. The Food and Drug
Administration is now en
deavoring to set standards for
labeling this product.”
Jones concluded with the
statement, “We have seen in the
past year that we cannot depend
on Federal marketing orders
alone to achieve a fair return for
our product. Dairymen are going
to have cooperative effort for
effectiveness in the market
place.”
Inter-State Milk Producers’
Cooperative represents some
2900 dairy farmers in Penn
sylvania, New Jersey, Delaware,
Maryland, Virginia and West
Virginia.
control and the Pennsylvania
Milk Marketing Board, dealers
and some of their farmers will
suffer and have to find new
markets. Any rapid adjustment
could be quite damaging and
could bring about consumer
reaction and loss of business.
Honan continued by posing
questions to be answered in the
near future: “How can we, as
dairymen, point out to those in
command short-sightedness of
out national price policy on milk
and dairy products which seems
to say that foreign butter, powder
or cheese will be used to clobber
American dairymen when they
seek proper prices to stay in
business?” “How can we better
measure consumer reaction to
our price levels?” “How should a
Class I or Class I premium be in
one or more parts of the Order 4
market or the Middle Atlantic
and New York and New England
region?”
“You have the know-how - you
can do all the things you need to
do if you, as dairymen, do it
together with your neighbors as
you have in the past. If you
continue to work cooperatively,
you will ‘get it all together’,”
Honan concluded.
The Inter-State Milk
Producers’ Cooperative held
their annual meeting at the
Marriott Motor Hotel, City Line
Avenue, Philadelphia, Pa. The
Cooperative represents dairy
fanners in Pennsylvania, New
Jersey, Delaware, Maryland,
Virginia and West Virginia.
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