Use the Profit-Making Genetic Power of Intense and Reliance 15H200 Weikland Ira Eve INTENSE - VG 52 Daughters in 48 Herds Average 15.848 M 3.6% Predicted Difference (74% rpt.) +97BM +s99 21 Daus. Cl. 79.3 (act.) 80.5 (age-adj.); +.SBPDT Type Strengths: fore udder, rear udder, teats, and rump Sire: P-F Burke Intense GM Dam: an EX Apollo dau. with rec. to 24,400 M & 925 F Our Daily Holstein Selection Includes: 20 bulls with milk PD over +l,OOO 20 bulls with value PD over +sloo 9 bulls with +PD for % test 31 bulls with at least 70% repeatability 28 bulls with +PD for type All are priced reasonably through Professional Technician service and Direct-Herd sales! 1980 milk production to LANCASTER - Milk production this fall will be about two percent above a year ago, primarily due to the expanded dairy herd. Thus, total 1980 output will be the largest oh record, topping the previous high of 127 billiop pounds in 1964, and three percent more than in 1979. More favorable demand conditions-a strengthening general economy and higher meat prices-could increase commercial use of dairy products. However, a large supply of milk .for manufacturing purposes, large USDA stocks and the Commodity Credit Cor poration’s (CCC) 105-percent sellback policy will limit potential price advances. In late September, wholesale butter and cheese prices were near the higher support purchase levels, in an ticipation of higher CCC prices effective October 1. Farm milk prices and retail dairy product prices will tend to follow these increases in conjing months. July-August milk production was 3.2 percent greater than a year ago. The U.S. dairy herd continued to expand this summer; cow numbers in August were the largest since March 1978 and one percent more than last year. Output' per cow during July-August was up 2.2 percent, compared with an average gain of 3.3 percent the previous 12 months. This slowing was due to a decline 571 F +2SF "(July/80 USDA Production and HFA Type Summaries) be highest ever in milk-feed price relationships and the strong productivity gains made a year ago. The major uncertainity with respect to production into mid-1981 is the number of milk cows, although it is almost certain to average above year-earlier levels. The apparently large numbers of replacement animals and the mandated April 1,1981 increase in the support price will encourage expansion. Conversely, expected higher cull cow prices and substantial increases in feed costs may limit the expan sion or even cause a down turn.in cow numbers. Milk-feed price relationships will not be as favorable as in the past few years, likely inhibiting productivity gains. On balance, milk production gains can be expected to continue during the first half of next year, although the rate of increase is likely to subside. Due to the slack supply demand balance, manufacturing grade milk prices (when adjusted for fat content) failed to reach the April-September support level, although they in creased from 58 cents below in April to 17 cents below in September and averaged about 42 cents under. During September, the manufacturing grade milk price was $12.10 per cwt., up six percent from last year, while the average price paid 15H205 Wauk-A-Way Fond RELIANCE - VG(B7) 71 Daughters in 54 Herds Average 16.385 M 3.7% Predicted Difference (78% rpt.) +s9l +756M +.01% 18 Daus. Ci. 80.2 (act.) 82.4 (age-adj.); +1.29 PDT Type Strengths; fore udder, rear udder, teats, and rump Sire; No-Na-Me Fond Matt EX & GM Dam. an EX-2E Marquis dau. with 2 rec. over 20,000 M and 750 F Atlantic breeders cooperative LIVESTOCK SERVICES Member NAL Affiliated Breeders • Toll-Free 24 Hour Phones For Service: Lancaster Area 569-0411 Pennsylvania 800-732-0391 Del.. Md. & N.J. 800-233-0216 Our Representative in Northeastern Pennsylvania is Taurus Service Approved by Certified Semen Services Lancaster Farming, Saturday, October 18,1980—D1l for all milk was $13.10, up 6.5 percent. Higher support prices, as well as seasonal factors, will cause farm milk prices to strengthen for the rest of 1980 and average about a tenth higher than a year ago during the fall. On October 1, the support price for manufacturing grade milk was increased to $13.10 per cwt. at 3.67- percent fat (and $12.80 for 3.5-percent fat) for the 1980- 81 marketing year. This price must be adjusted on April 1, 1981, to reflect the estimated change in the index of prices paid by farmers. By late September, wholesale prices of butter and American cheese had increased more than a dime from early April. Wholesale prices of nonfat dry milk were much more stable, while edible dry whey prices were up sharply. Retail dairy products prices during August were 10.1 percent higher than last year, compared with a 9.5- percent increase in the price of all foods. Retail dairy product prices will continue to rise this fall, due to the recent increases in wholesale prices and seasonal supply-demand factors. For all of 1980, dairy product prices at the gi ocery store will average about a tenth higher than last year. Continuing heavy raw milk supplies resulted in 7.5 percent more milk used in the manufacture of dairy products during June- August. Butter production was up 19 percent from a year ago, and American cheese output increased 6.8 percent. The manufacture of other cheese varieties was down 2.7 percent. Meanwhile, commercial disappearance of milk and dairy products was un changed during July-August. Cheese sales remained languid, while commercial use of butter rebounded. Industry holdings of,dairy products dipped below year earlier levels this summer. On September 1, com mercial stocks of milkfat and solids-not-fat were 12 percent and three percent, respectively, below year earlier levels. Compared with a year ago, CCC purchased large quantities of dairy products under the price support program during July- September-although Govern ment purchases subsided in August ' and a small amount of butter was sold back to the industry. In the marketing year just ended, the CCC removed 8.2 billion pounds, milk equivalent, from the market the largest since 1962. The CCC-purchased more than six percent of the milkfat and solids-not-fat marketed, up from one and two percent, respectively, in 1978-79. Net purchase costs (CCC purchases less sales back to the industry for unrestricted use) during (Turn to Page Dl2) 614 F +29F