Eg—Uncaster Farming, Saturday, January 5,1980
NEDCO calls
consumer move
4 serious threat ’
SYRACUSE, NY -
Calling it the most serious
threat to the Federal Order
program and dairy farmer
incomes smce the Order’s
inception smce 1937, the
Northeast Dairy
Cooperative Federation is
calling all the dairy
cooperatives to band
together to thwart recent
efforts by the Community
Nutrition Institute (a con
sumer organization) to
remove reconstituted milk
from the federal order
system of classified pricing.
According to NEDCO’s
President Edward Mc-
Namara, CNI has petitioned
Agriculture Secretary
Bergland to call a hearing to
exempt reconstituted milk
from classified pricing, thus
doing away with the entire
federal order system.
“This is a very serious
matter to all milk
producers,” he said.
“Only a national effort by
all cooperatives can solve
this problem. We should not
try to crusade ourselves with
the entire industry at stake,”
cautioned the dairy leader.
NEBCO currently is
working through the
National Milk Producers
Federation and its 200
member cooperatives to
prevent the hearing
requested by CNI. According
to McNamara, a call to unity
is the only way the dairy
industry can hope to survive
m the future.
“The dairy industry is
being attacked on all sides.
Its basis for existence, to
say nothing of any growth
potential, will depend solely
on its ability to rally together
in one voice and a singleness
of purpose,” he said.
NEDCO, and the National
Milk Producers Federation
have requested a 180-day
extension of time for the
filing of comments con
cerning the reconstituted
and filled milk issue.
NEDCO also recently
mailed letters to each of its
nearly 3000 producer
members asking them to
contact their congressional
representatives m strong
opposition to the hearing
desired by CNI.
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“For the sake of a few
pennies, these certain
consumer advocates are
willing to destroy the lives of
hundreds of dairy' families,
who would surely be forced
to sell out if their fluid milk
price is taken away,” said
McNamara
“They speak too of con
sumer lower prices, yet the
very approach they are
taking would have to mvolve
a processing cost to add
water to the powdered milk,
a simple procedure that can
be done now by the con
sumer himself.
“Let me explain
something else,” he added.
“Ultimately, if there is only
one class of milk under the
federal order bringing the
lower manfacturmg milk
price, this would have meant
a reduction in the November
blend price to the fanner of
$1.29 per hundredweight;
translating over a year mto a
loss of $B,OOO to the average
producer...more than many
farms even show as a net
income!
“I don’t think our con
sumer advocate friends even
took the tune to consider the
impact on themselves and
the people who’s cause they
are pursuing,” he said.
“I think it’s safe to say
that over the long haul,
without a pricing structure,
chaotic marketing would
develop among the dealers,
eventually making it nearly
impossible for anyone to find
a quart of fresh milk
anywhere ”
McNamara went on to say
that short range cheap food
policies in the end defeat
themselves. “They can only
guarantee long range
shortages of food and higher
prices to the very consumer
they are trying to protect,”
he said.
“It is wrong to forsake an
entire industry for the sake
of a few special interest
consumer groups, such as
CNI, who plunge mto them
worthy causes often with
blinders on. They not only
hurt themselves, they are
givmg consumers, again, a
lesser, often fake product,
with a short term price
advantage,” he said.
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