D2o—Lancaster Farming, Saturday, December 20,1980 Taking apart the CNI proposal BYCURTHARLER LITITZ - The so-called CNI Proposal, like many other complex issues in the dairy industry, is hotly discussed but often un derstood only on the surface. The U.S. Department of Agriculture is asking far mers and other interested parties to comment on the proposal. Letters to the Deputy Administrator, Marketing Program Operations, USDA, Washington DC 20250 are welcomed until January 2, 1981 But just what is this “CNI Proposal?” Does it really seek to kill federal milk orders? Will it cost dairymen, and if so, how much? Order 4 Market Ad ministrator Joseph D. Shine sums up the issue this way “The proposal, which was submitted to the Department of Agriculture by the Community Nutrition In stitute, a fluid milk processor, and three in dividual consumers, would remove commercially reconstituted milk from the Class I pricing provisions of the orders.” Shine’s last dozen words tell the story in brief. But the impact of CNI goes much further. Specifically, petitioners have proposed that all or ders be amended to remove reconstituted milk products from the definition of “other source milk” for the purpose Introducing The ZERO BETA-Z™ Feed Manager YOU + BETA -1 - THROUGH BETTER FEED MANAGEMENT! AUTO-SCAN COMPUTER Zew: Regional Sales Manager Ray Kuhns 67 Roland Ave Chambersburg, PA 17201 717-264-3814 Distributors PENNSYLVANIA Donald Everitt Mifflmtown 717-436-2561 W.F. Garing Co. Honesdale 717-253-0187 of eliminating the “down allocation” of milk ingredients used in such products It aho would eliminate requirements that processors of reconstituted milk products make a “compensatory payment” on such products assigned to Class I Most farmers know Class I milk usually brings the highest payment, followed by Class II and in some orders, Class 111. Payment is based on milk use Reconstituted milk made from powder is paid for at the lower-valued uses of the handler This is “down allocation ” If the handler does not have sufficient Class II or Class 111 utilization in his plant to cover the quantity of reconstituted milk, the remaider is assigned to Class I. But, the handler is required to make a “com pensatory payment” with respect to the quantity assigned to Class I. That payment is equal to the difference between the Order’s Class I and Class II prices and goes to the producers in the Federal Order. The CNI proposes to eliminate reconstituted milk products from the down allocation and compensatory payment provisions of federal milk marketing orders that make their use uneconomical. The effect of the proposal Zero Manufacturing Company Washington, Missouri 63090 TEL. (314) 239-6721 Telex 44-2476 Marvin i. Horst Lebanon 717-272-0871 W & J Dairy Sales Oxford 717-529-2569 Roop & Sons Lmwood Hockenbury Electric 301-7752127 Rmgoes 201-782-5950 DELAWARE NEW JERSEY Warfield's Refrigeration Frederick Hiott Refrigeration 301 663 0088 Wyoming 302-697-3050 What it says and doesn't say would be that of reclassifying reconstituted milk in the lowest-valued class Reconstituted milk then could be acquired at a cost equal to the manufacturing price plus the cost of processing milk into nonfat dry milk and butter and reconstitution CNI does not propose to change Class I prices for fresh fluid milk However, reclassifying reconstituted milk would give a price advantage to reconstituted milk in most areas of the country This is because fresh fluid milk prices would be based on Class 1 prices, while reconstituted milk would be based on cost of recon stituted ingredients Because of its price ad vantage, USDA economists see reconstituted milk being more favorably priced everywhere in the country except for the Southeast. Reconstituted milk could account for up to 38 percent of fluid milk consumption In the Northeast, the price for milk would drop somewhere between six percent and 6.5 percent, the economists say. That’s well above the U S. average of about four percent. What’s the logic from CNI behind all of this’ CNI has several arguments against the current system. It says current regulations on reconstituted milk I / u RESPONDER /\\ FOR i i POSITIVE g fl IDENTI % i FICATION w ZERO MARYLAND Laurel Run Farm Supply Grantsville 301 895-5567 eliminate a nutritious, but lower cost, alternative to fluid milk That, CNI says, increases food prices, especially for the poor, by adding millions of dollars to the nation’s food bill. The Farmer Automatic 4 Deck Cage System A system well devised and constructed for an uncomplicated and economical operation, modern and advanced, it will help you to gain your well deserved maximum return on your investment. More layers per square foot of building space, more than any other system on the market today, 10,000 layers per 285 cage row. Lower maximum cage height, even lower than most 3 deck systems (6’B” max height, 4’6” max width). No special and costly floor or pit construction The 4 deck system can be installed in an existing building, without costly conversion or remodeling problems Double or even triple your current building capacity Automatic manure removal, giving an odor free environment, healthier animals, more pleasant and healthier working conditions Higher bird concentration assures a comfortable, perature during cold season Summer ventilation is easier to accomplish because of the absence of ammonia and other fumes CNI says the regulations are “Unnecessary to protect milk producers.” The group says the regulations as now written are contrary to the Ag Marketing Agreement Act Energy Saving Design Only 3 fractional horsepower motors per row accomplish the automatic feeding, automatic egg conveying and automatic manure removal THE FARMER AUTOMATIC OF AMERICA, INC. By Reynolds and Yellott Co., Inc. 12802 Gores Mill Rd. Reisterstown, MD 21136 301-833 1840 f j Write for Full Information I I NAME. | ADDRESS | CITY | STATE I I policy to protect against unreasonable fluctuations m supplies and prices CNI doesn’t like having a barrier to marketing of nonfat dry milk. It says the (Turn to Page D2l) energy saving tern- ZIP.
Significant historical Pennsylvania newspapers