ALLENTOWN Dairy
farmers in 1960 will see milk
prices about $1.20 over 1979.
However, farm milk prices
will represent a smaller
percentage of parity in 1980
than occurred in 1979, said
John York, Vice President of
LeHigh Valley Dairy
Monday.
All Triillc price received by
Mrl
$12.12
12.90
12.85
12.74
12.71
12.77
13.41
13.94
14.19
14.36
14.26
13.89
$13.34
January
February
March
April
May
June
July
August
September
October
November
December
Average
farmers was 79. percent of
parity at the dose of the year
1978, and 73 percent of parity
at the year ending 1979. In
1980, all milk prices .are
likely to be 70 percent of
parity.
The Federal Order Market
Milk prices are forecast as
follows for 1980:
The above milk prices are
forecad; by assuming the
Minnesota-Wisconsin man
ufactured milk price will
average $12.05 in 1980.
It is further anticipated
that the Secretary of
Fidelity Electric’s “Yellow Jacket’’alternator is more
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Overload protection breaker
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- Main output receptacle
Receptacle for welder or
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Local milk price should climb
to $1.20 above 1979 average
Agriculture will continue
dairy support at 80 percent
of parity, which is projected
to be $11.95 on April Ist and
$12.58 on October Ist com
pared to the present supjiort
price of $11.22 for 3.5 percent
butterfat.
The average dairyman in
1980, under Federal Order 4
whose daily production is
U4U
M>2
aUWribw
KW
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nuumc
MM
$12.88
13.10
13.19
13.16
13.32
13.29
13.45
13.68
13.90
14.07
14.14
UM
$13.52
$12.31
12,47
12.29
12.19
12.22
12.20
12.93
13.52
13.89
14.03
13.92
13.59
$12.96
about 2000 pounds, could
expect his gross income
improved by about $8,700.
A dairyman in Federal
Order 2 with 1550 pounds
daily production could
improve by $6,700.
Spiraling farm operating
costs are certain to occur in
1980. Therefore, net income
improvement largely
depends on individual farm
effidendes, York said.
Currently, milk production
nationally is 3 percent
higher than a year ago.
The five heaviest milk
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Lightweight aluminum frame
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with breaker
production states
Wisconsin, California, New
York, Pennsylvania and
Minnesota all show an
increase in the trend of milk
production with California 7
percent above a year ago.
It is anticipated that this
trend mil continue and may
likely be in excess of 3%
heavier milk production in
1980 over 1979. Government
removals of storable dairy
products are increasing, and
at the end of 1979, available
under the program, was 145
million pounds of butter, 20
million pounds of cheese,
and 406 million pounds of
non-fat dry milk.
The prospects for 1980
suggest substantial in
creases in Government
removals of these storable
dairy products.
Meanwhile, the an
ticipated increase in imports
of cheese, occasioned by the
passage of the 1979 Trade
Act, will further expand
Government removals, he
said.
mnum
MM
•M
$13.08
13.30
13.36
13.33
13.52
13.45
13.56
13.79
14.02
14.20
14.28
14.20
$13.67
The most critical issue
confronting dairy farmers in
1380 will be increased energy
costs. They will cause higher
costs of production, higher
feed prices, higher fertilizer,
and higher milk hauling
rates'.
Despite the semi-annual
adjustment in support price
to reflect the anticipated
increases in the Index of
Prices Paid by farmers, net
farm income could narrow.
Convenient lifting eye
Grounding
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AREA DISTRIBUTORS: ~
AGRI POWER & W& J DAIRY SALES Tom Dunlap
EQUIPMENT, INC. Mr. William Guhl R.D.#4
Mr. Robert Nick R.R. #2 Jersey Shore, PA 17740
640 Millcross Road Oxford, PA 19363 717-753-3196
Lancaster, PA 17601 717-629-2569
717-394-9251 '
BOOTH P-26, P-27 At the PA FARM SHOW
Fewer dairy
The little guy \
with the big sting:
screen
form failures Lancaster Faming, Saturday, J—«ry 5, 1960—A19
While milk production is
likely to exceed the 1978-79
level by more than 3 percent,
the per capita civilian
consumption of dairy
products will not change
significantly in 1980 except
for further increases in the
consumption of cheese and
further decreases in
evaporated and condensed
milk products.
Consequently, with per
capita consumption of all
dairy products about equal
to 1979 and domestic supplies
of milk up with additional
imports of cheese, Govern
ment removals and holdings
might double what they were
in 1979, York said.
The Northeast is likely to
see less movement of milk
and dairy products into the
Northeast from other parts
of the country in 1960 and
future years, as long as high
energy costs inpact heavy
on transportation rates.
Meanwhile, the slowing
down of the industrial sector
of the Northeast economy is
likely to encourage milk
production since the
alternatives to farming may
be more limited in 1980.
The attrition rate of dairy
farmers may continue to
slow down in 1980. Amongst
the three federally regulated
markets in the Northeast,
dairy farm numbers have
not dropped as fast in 1979 as
they did in 1978.
In 1978, the Mid-Atlantic
market saw a reduction of
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Dealer inquiries invited
600 farmers from January
through to the end of the
year, while in 1979, 100
farmers; in the N.Y.-N.J.
market a drop of 500 farmers
from the beginning of 1978
through the erd of the year,
and 150 farmers from the
beginning of 1979 through the
end of the year, hi the New
England market, there was
a drop of 325 farmers in the
1978 period, and 130 farmers
in the 1979 period.
Meanwhile, production per
day per dairy in these three
markets have been in
creasing at the rate of about
100 pounds per day per dairy
for each of the past three
years.
It can be anticipated that
further increase in the
production of milk per dairy
will occur in 1980.
In addition, two <t the five
highest milk production
states in the nation, New
York and Pennsylvania, are
' currently running between 3
percent and 4 percent above
a year ago, with Vermont 6
percent pbove a year ago.
Northeast milk supplies
will '^balance
not be in as gooa
with demand in 1980 as it was -
m 1979. Dislocation of
market outlets for producers
may very well be prevalent,
particularly during the
heavy Spring surplus period
of the year.
While market prices in the
Northeast will improve, the
rate of improvement may
not keep pace with in-
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332 N. Arch St
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flationary costs, and the
milk feed price ratio, while
favorable, is not likely to be
as good as it was in 1978-79.
The Order 4 market is
likely to be the most
favorable in 1960 of the
Northeast federally
regulated markets.
In addition, a producer in
the federal order Midr
Atlantic market can im
prove bis individual position
by producing more base
milk available to him in that
market.
Market stability will
depend upon the
Cooperatives’ ability to
package milk and handle the
excess in 1980, York
predicted.
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