—Lancaster Farming, Saturday, May 27,1978
104
Higher food prices not farmers’ fault
WOLF POINT, Mont. -
“Livestock producers and
other farmers should not be
criticized for the higher
prices that they’re now
receiving,” Howard Hjort,
director of economics, policy
analysis, and budget for the
U.S. Department of
Agriculture told the Wolf
Point Chamber of Com
merce and Agriculture’s
Annual Livestock Show and
Sale recently.
“People quickly forget
Chafcfor the past three years,
meat at the grocery store
has been a bargain at the
expense of the U.S. livestock
producer. Many people do
not know what’s happened to
die livestock industry since
the 1975 record inventory of
, 132 million head. In 1976, the
dropped to 127.9
in 1977, it decreased
again to 122.8 million. As of
Jan 1, the cattle inventory
only 116 million head.
Next January, the inventory
'ifill be even lower.” Hjort
adding:
the same time.prices
deceived by fanners for
their beef averaged $32.30
per hundredweight in 1975,
$33.70 per hundredweight in
1976; and $34.50 per hun
dredweight in 1977.
“This record decline in
inventory kept meat prices
low, even though livestock
producers have paid sharply
higher prices for feed, fuel,
machinery, and other inputs.
And, if you add the severe
droughts in the West and
Southeast, producers had a
doubly hard time. Com
paring only cash out-of
pocket production costs of
about $4O per hundredweight
for feeder cattle, the
.cow/calf operator and the
commercial feeder in the
Great Plains both have lest
from $5 to $lO per hun
dredweight since 1975. It was
net until early this year that
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WES STAUFFER SMALL ENGINES
RD3, EPHRATA, PA 717-733-9174
V* Mile So. of Rt. 322 on Pleasant Valley Rd.
Ephrata Exit. New Rt. 222
prices rose above $4O a
hundred.
“As a result of this severe
imbalance between
production costs and prices
received by producers,
we’ve had the sharpest
decline in cattle inventory in
history.”
Hjort explained that there
will likely be lower beef
supplies for the next few
years. “It appears that 1978
production will be about
three per cent less than
1977’s 25 billion pounds, with
more fed beef supplies and
lower nonfed beef slaughter.
Prices in coming months and
4-H lamb
club meets
RED HON T The May
nutting of the York County
Lamb Club was held at the
Home of Donald Flory near
Red lion.
Fair exhibits were
discussed along with ideas
for the York County
Roundup which is scheduled
for August 18 and 19. The
lamb club will be
represented by an exhibit at
this event, held at the York
Fairgrounds.
The tour for the club is
scheduled for June 3. The
bus will leave Red Lion at
6:45 a.m., at 7
am., going to Penn State
Main Campus. Judging,
evaluating, /and demon
strations on wool spinning
and sheep dogs are all part
of the day’s planned ac
tivities.
Next meeting will be June
1, at 6:30 p.m. at the home of
Ebersole’s. Blocking and
grooming will be demon
strated.
years are going to increase
further, as a result of lower
supplies, and the reasons
this will happen must be
understood by the com
suming public and the
government.
“The prices that farmers
are now getting are essential
to cover rising feed costs, the
losses incurred in the last
three years, and herd
replacement. Prices will
likely have to continue,£o
rise te reverse the
liquidation cycle.
“Food costs are-likely to
average six to eight per cent
higher in 1977. Ten per cent
of this increase will be the
result of imported foods -
sugar and coffee - and fish,”
Mr. Hjortstated.
“About half of the increase
■will be the result of increases
ift the farm value of food,
while about 40 per cent of the
VJwerall increase will be
JWjcause .'of- increase*!.
wages and
salaries,
Farming ...
It’s Nurtured
the Good Earth
of Our America
Let's remember the part farming
has played and still does in the
development of the United
States. It has provided us with
the essentials to achieve what
we have today. By providing
food tor our millions . . . natural
fibers for our clothing . . . jobs
for many of our people. Let's
practice conservation to
preserve this land that has given
us life.
packaging, and tran
sportation.
“For the second con
secutive year, the wages and
executive salaries com
ponent - the labor bill - of
theseN marketing costs after
the food leaves the farm will
exceed the total farm value
of that food. For 1978, we’re
forecasting that the increase
in the farm value of food will
be about $4 billion, the first
significant gain in farm
prices since 1974. Nonfann
marketing costs will double
fliis amount and add about $9
billion to retail food costs
this year.
“Even though American
consumers will probably pay
over $l9O billion for food in
1978, the farmers’ share of
the food dollar will be only 32
cents. The marketing costs
for food after it leaves the
farm gate will exceed $l3O
billion - that’s 68 cents of
each food dollar.
“I think everyone should
recognize that increased
FOR MORE INFORMATION. CONTACT
VOIR LOCAL COUNTY OFFICE.
prices to livestock producers
make only a small con
tribution to rising retail food
costs. The food industry is
highly complex, and within
that industry, livestock
STOLTZFUS MEAT MARKET
Wie Do The Complete Job With
No Middle Man, And Our Prices
Are Right.
• FRESH CUT BEEF & PORK
• FRESH EG6S RIGHT FROM THE FARM
★OUR OWN COUNTRY CURED
HAMS, BACONandSWEETBOLOGNA
Orders Taken For Beef Sides; Wrapped
And Ready For Your Freezer.
Attention Farmers:
We Do Custom Slaughtering
For Your Freezer.
: Directions; 1 block east of Intercourse ;;
onßt 772
Reg. flours: Thurs. 9-5; Fri. 9-8; Sat. 8-5
\ k
VI
producers have been the
losers for the past
years, not the big winni
They should not become
scapegoat today,” Hj
concluded.
PH;76B-7166
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