—Lancaster Farming, Saturday, February 4,1978
104
Economic problems face all facets of food chain®)
By JOYCE BUPP
Staff correspondent
YORK - “Where does your
food dollar go?” was the
question posed to five
panelists, each explaining
his industry’s unique
problems as a part of the
food chain, during the recent
York agribusiness seminar
held at Avalong Dairy
Restaurant, here.
Speaking for agriculture
was East Berlin dairyman,
Ralph McGregor, who called
himself one of the 2.8 million
farmer-producers generati
ng 4.4 million jobs in the
production segment alone,
more than either the
automobile or steel industry.
McGregor told of his concern
that 59 per cent of total farm
income is now being
generated by off-farm jobs.
With only one-third or
slightly less of the food
dollar coming back to the
Milker school slated
GETTYSBURG - Adams
County dairymen will have
the opportunity on Feb. 16
and 17 to attend a Milker’s
School, to be held at the New
Oxford Fire Hall. If in
terested, fanners should
make their reservations with
the Adams County Extension
Service by Feb. 10.
The faculty for the school
will consist of Dr. Robert J.
Eberhart, veterinarian; Dr.
Earl Kesler, professor of
dairy science; and Steve
Spencer, Extension dairy
specialist. All are from Penn
State University.
Topics to be discussed will
include Anatomy and
Development of the Udder,
Equipment Maintenance,
Hormones of Milk
Production, Cleaning
Principles, Physiology of
Milking, Cow Psychology,
How the Milking Machine
Works, Mastitis - the
disease, Vacuum and
Milking Systems, Milking
Routines, and Milking Labor
Studies.
The registration fee of $lO
per person includes two
lunches. Men and women are
invited Anyone who milks
cows will benefit, program
Land values
soften
NEWARK , Del - High
yields and favorable prices
for crops in recent years
have resulted in the bidding
up of land by farmers
anxious to expand
production But the boom
may be fading, says
University of Delaware
Extension agricultural
economist W T McAllister.
And he urges farmers to
assess their circumstances
carefully, as they consider
acquisition of more land
Declining prices, filled
storage bins with big carry
overs from one year to the
next, government acreage
set aside programs and
target prices are causing
farmland values to soften
Many things
responsible for the in
creasing value of land in
addition to its value for
farming Industrial
development, shopping
centers, housing develop
ments, new roads and other
public facilities all compete
with farmers for available
producer, McGregor sees
farmers taking on outside
jobs because of the necessity
of trying to keep up with
escalating mput costs
Pointing a finger also at
rising costs was food
processor James W.
Reynolds, general manager
of Hanover Brands, Inc.,
Hanover. With a two year
depression in the canning
industry, there has been no
profit on processing either
fruits or vegetables, he said.
A mam cost problem comes
in the form of escalatmg
energy costs; and packaging
materials are becoming
more expensive, with three
price increases for tin cans
during the last 14 months.
Squeezing every bit of
pollution out of the en
vironment is also a high
priced proposition, with the
food industry paying a large
portion of the eight to 10
organizers assure. Those
who attend both days will
receive a certificate of
completion.
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million dollar national bill
annually spent on meeting
government-imposed regu
lations
Rudolph A. Comchoc is
general manager of the
wholesaling firm of P.A. & S.
Small Co., York.
Wholesalers, according to
Comchoc, add six per cent to
the cost they pay the
processor, their fee for
providing warehousing,
handling and transportation
of bulk quantities to food to
retailing outlets. He pointed
out that this procedure
actually saves the con
sumer, because retailers do
not have to invest ad
ditionally in storage of
massive purchases, but can
instead order for weekly
sales needs. A wholesaler
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retailers the chance to ef
fectively compete with
supermarket chains which
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The vice president of sales
for Giant Food Stores,
George Reynolds, felt that
supermarkets bear the brunt
of consumer dissatisfaction,
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even though they are only
one portion of the food in
dustry. No one has yet shown
any facts backing up
exorbitant profits by
supermarkets, Reynolds
insisted; and two of the
major eight food chains in
the nation showed no profit
at all last year. Industry
figures show that 59 per cent
of the expense in running a
food retailing outlet goes for
labor, including actual
wages paid and fringe
benefit costs. Utilities ac
count for another good-sized
portion of about 13 per cent.
And, he added, it is the
consumer who is demanding
increased service, con
venience, and variety.
Food buyers were
represented by York
homemaker, Mrs. James C.
Mahoney, who warned that
consumers are becoming
increasingly concerned over
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the quality of goods they
purchase. While many will
readily pay 60 dollars for a
well-made tennis racquet or
$70,000 for a new house, the
value of a box of detergent is
being carefully weighed.
Mrs. Mahoney emphasized
that the use of “cents off”
coupons increases with the
amount of education of the
buyer. She pomted out one
idythat "half
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of the nation’s food is lost
through storage, spoilage,
and waste and felt that
cutting down that per
centage would help solve the
food problem.
All five panelists agreed
on the final conclusion,
summed up by York Ex
tension Agent, John Smith,
the panel moderator: the
ultimate answer lies with the
consumer