Consumer
(Continued from Paji 1] Blend prices are likely to
impact is not expected until average 12 to 15 cents higher
June. than a year ago.
The education director Smith acknowledged that
predicts that a Class H price 016 new su PP° rt level fa
of $9.04 per hundred-weight to a o ™
will be the low for the year. to 4,18 ““riw* and that it will
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This was the Bicentennial Summer on the Luke Good farm near lidtz.
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be especially beneficial to
young farmers. “They’ll
need every penny of it they
can get,” he remarked.
Addressing himself to
government farm programs
in general, Smith told the
gathering of dairymen that
government farm programs
are not for the farmer. In
stead, they’re to insure
adequate food supplies. He
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sees the nation’s economy as
continuing to be the victim of
inflation', and hinted that it
might be worse in years to
come than it has been.
The NEDCO official in
formed the farmers that
significant shifts are being
seen within the dairy
products market. Affected
by changing trends are
consumption patterns, cow
numbers, production per
cow, Class I and II
utilization, profit margins,
Federal Order mem
berships, and milk com
ponent values.
On the latter, Smith said
that milk used to be valued
two-thirds on butterfat
content and one-third on
solids-non-fat (SNF). Now
the reverse is true, even
though prices are not being
paid according to the new
emphasis. The new trend is a
result of consumer buying
patterns. Fat is being pushed
aside or entirely avoided,
while protein is in demand.
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Skim milk, Smith pointed indicated, and fast methods
out, used to be an un- for milk protein testing have
marketable item. Now it’s been developed. The
priced the same as regular program is being pushed in
milk. The trend is illustrated „ , ~ . , ,
by the statistic that per New England, he said. Asked
capita butter consumption whether or not there was any
used to be 16 pounds. That’s direct correlation between
fow down to just four pounds, butterfat *nd protein. Smith
Smith went on to say that answered there was not.
in 1905 butterfat was king, Leon Musser, NEDCO
and paying prices were district director from
based on 4.2 per cent but- Lewisburg, gave a detailed
terfat, as opposed to 3.5 per account of milk production
cent today. trends in the Northeast. He
Cheese is becoming the that the number of
major pricing factor now, c °ws in the United States has
Smith exclaimed, and some dropped by nearly 50 per
figuring is being done on 3.2 cent since 1962. Annual milk
per cent protein. production per cow has in-
The switch from butter creased in almost every year
pricing to cheese pricing is everywhere, but much
just one message the con- greater than usual increases
sumer is relaying to the bfive been recorded since
farmer, says Smith. He *972. In Pennsylvania,
emphasizes that ,cmn- production per year has
sinners will be determining increased about 500 pounds
whether you (the dairyman) P* r cow over five years ago.
stay in milk production or Consumption of dairy
not.” He predicts it will take products is down, however,
at least five years before the bolding sales up is
protein pricing system is tact that there are more
adopted industry-wide. An P®®ple to feed.
8.25 per cent minimum A * so „ effected by
standard for SNF has production trends and
already been established, he consumption patterns is the
status of Federal Milk
Marketing Orders. Order 2,
which is the biggest in the
Northeast, has dropped in its
annual milk output by nearly
one billion pounds. Class I
utilization has declined in
recent years from 53.9 per
cent in 1968 to 49 per cent
now. Member producers in
Order 2 have dropped from
23,000 in 1971 to 19,000 this
year? Similar trends have
emerged in other Federal
Orders in the Northeast, with
the exception of Feideral
Order 4, which has gained a
few dozen producers since
1971.
The decline in mem
bership for Order 2 is of
concern to a number of dairy
industry officials since a
lower than 50 per cent
representation of dairymen
will lead to the abolition of
the Order. Smith pointed out
the strength of the dairy
inductry in the Northeast by
mentioning that 18 to 20 per
cent of all the milk in the
United States is produced
there. An average of 60 per
cent of that production goes
for fluid purposes, addle the
remaining 40 per cent is
designated for manufac
turing use.