‘Yo-yo’ milk prices firming
MNCASTER, PA. • During the past 19 months the dairy
Industry has seen milk prices moving up and down like a
yoyo, said Dr. Paul E. Hand, economist, Inter-State Milk
Producers' Cooperative, as he addressed the delegates
and guests attending Inter-State's 58th annual meeting
here last week. Dr. Hand noted blend prices have ranged
from $9.56 In April 1974, to $8 00 In August 1974, to $9.06 In
August 1975, to the present blend price of $9.96 for Oc
tober.
“Although improvement has been slow in coming -
slower than needed by milk producers - we can report that
there was a continued improvement through 1975, and we
are on the threshold of a strong marketing year in 1976,”
said Hand. He credited the depressed price situation,
wluch prevailed during most of the last months, a result of
the Administration's decision to import large volumes of
manufactured dairy products in the spring of 1974,
'time when national production was meeting a
level of domestic needs, and increasing,” he said, “this
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‘We're on threshold of strong marketing year ’
Import decision was disastrous to the dairy industry." He
also noted that the Mlnncsota-Wisconsin price dropped
from 18.15 in March to 16.29 in July, which was reflected
directly in a decline in the Class I price over o comparable
four-month period.
Dairy farmers, both nationally and in the Middle
Atlantic region, responded to this disastrous decline by
culling heavily and feeding less, resulting in a lower
production per cow, he said. Today production levels
continue below 1974 levels as a hangover from this period
Hand predicted, barring such disasters as increased
Imports, that prices will not fall more than 75 cents from
this fall’s highest level. Citing strengthened sales coupled
with the recent expansion of the marketing area, he also
predicted Class I utilization for 1976 should exceed 1975
levels and could result in 1936 having the highest
utilization in the history of the middle Atlantic Order
“Based on the trend of declining numbers of dairy
farmers, and good demand for dairy products,” said Dr.
Hand, “we see little danger of an over-production of milk
m this area or nationally.” He noted 1976 may be the
strongest year in the history of the dairy industry in the
Middle Atlantic area, with the possibility of blend prices
averaging near $lO.OO cwt.
Hand noted the expansion of the Middle Atlantic Order
into southeastern and south central Pennsylvania and
Washington County, Maryland, resulted in the addition of
about 31 new handlers, 600 new producers, and the
regulation of about 60 producer-handlers. He noted
several dealers have protested the expansion in central
Pennsylvania and are not paying into the pooling fund.
“These dealers receive milk from about 300 or half the
number of new producers, delaying the improvement in
blend prices and Class I utilization which would result
from all new handlers complying with the order.” He said
this expected improvement was about 8 cents in the blend
price and 3 percent in utilization, while the actual increase
was nearer 5 cents in the blend price.
Hand expressed hope that new personnel in the Penn
sylvania Milk Marketing Board will fulfill the law and
restore a degree of confidence in the PMMB. He also
reported that Inter-State’s management has been working
with a pricing committee of the National Milk Producers
Federation, which has recommended a new formula for
determining on-farm milk prices.
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Phone Lane. 717-299-2571
Lancaster Farming Saturday, Dec. 6.1975—75
Regarding the resolution passed at the 1974 annual
meeting requesting investigating the possibility of pricing
milk in accordance to its protein content, Dr. Hand cited
studies noting two major problems: first, there is no
specific market value for protein, and; second, accurate
testing is not het financially feasible.
Henry Lapp, Gap, Pa., was named Outstanding
Power Choring Dealer at the Annual Jamesway
Dealer Sales Meeting held recently at Carlisle.
Henry Lapp, right, representing the dealership,
received a recognition plaque for outstanding sales
and service from John Belstra. Dealers were
commended for outstanding sales of Jamesway
Power Choring Products and received information
regarding new products, product improvements
and their 1976 Marketing Program.
Construction cranes hover about the center of
Pennsylvania Power & Light Company’s
Susquehanna Steam Electric Station construction
site near Berwick, Pa., doing the heavy lifting for
the 2,258 workers who are building the
2,100,000-kilowatt nuclear generating project
The first unit is scheduled to go into commercial
operation in late 1980, and the second Jn early
1982. Construction is currently at the 14.4 per cent
completion stage. The dark conical shapes are the
steel liner plate of the reactor containments, which
will eventually be surrounded by six feet of rein
forced concrete.
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