Dl6—Lancaster Farming, Saturday, April 18,1981
Ag Secretary Block addresses UDIA meeting
WASHINGTON, D.C - United
States Secretary of Agriculture
John R Block outlined portions of
his proposed farm program, in
cluding a $2 million appropriation
for dairy research, in his March 24
speech at the 11th annual meeting
of United Dairy Industry
Association.
The annual meetmgs of UDIA
and its operating organizations,
American Dairy Association,
Dairy Research Inc. and National
Dairy Council took place in
Washington, D.C.
Block said, “We have sought to
provide in the budget and in the
farm program great emphasis on
expanded agricultural exports,
emphasis on research and ex
tension. There’s some $2 million of
additional research for dairy in our
budget, plus additional monies for
several other agricultural en
deavors.”
About dairy price supports,
Block stated, “I support, as you
know, that this mandatory in
crease not go uito effect and I think
a great many of you support the
fact that it should not go into effect.
“We’re getting too many dairy
products today Without foregoing
this price increase, we can have
some 11 billion pounds by the end
of this year and about $1 8 billion
worth of product on hand There
isn’t any way in the world that I
can justify that ”
Block explained the ad
ministration’s policy on casein
unports by saying, “Action to
restrict casein imports
legislatively is untimely, it’s un
warranted, and it may well be a
violation of our international
trading codes.
“Our trading partners under the
General Agreement on Trade and
Tariffs would almost certainly look
unfavorably on such action If
limiting casein imports proves
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necessary, Section 22 ad
ministrative action is the proper
way to go.”
In answer to a question from the
floor on the Soviet gram embargo,
Block said, “I’ve been an ardent
opponent of the gram embargo
since the day it was imposed.
“The timing on lifting it is going
to depend on the international
situation . The president has said
that it will either be lifted or
broadened.”
On farmland loss, Block said, “I
don’t think the United States
Department of Agriculture should
take a heavy-handed role in land
use activities, but I think we
definitely have a responsibhty of
taking a leadership role. The issue
must have broad visibility, not just
in terms of farmers appreciating
it, but the public, so that you have
the public support.”
The approximately 700
delegates, guests and staff who
attended the meeting also heard
addresses by UDIA President
Glenn H. Lake, Executive Vice
President John W Shter and guest
speakers Roy W Uelner, executive
vice president, Allis-Chalmers
Corporation and Barbara Keating,
president, Consumer Alert
Lake announced the results of
the successful, UDIA-mitiated fall
1980 cheese promotion
He said, “We are thrilled to
report that UDIA not only reached
its goal of a 10 percent increase in
cheese sales as a result of our ffort
in the ‘Cheese ..Slice of Life’
promotion it beat it by 60 per
cent
According to date compiled by
the Market Research Corporation
of America, UDIA’s $4.2 million
promotion increased cheese sales
nearly 16 percent during the 90-day
period That’s an additional 90 7
million pounds of cheese.”
He also said, “During
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results of a 10-market study
conducted for United Dairy In
dustry Association show that dairy
farmers got back $2.20 for every
$1 00 invested in non-brand milk
advertising in 1971 That’s a 120
percent net return on investment.”
Sliter’s remarks centered on the
dairy industry as a major con
tributor to America’s food supply.
He also analyzed the Commodity
Credit Corporation’s annual report
for 1980 in which, he said, “you will
find stated that net expenditures
for surplus dairy products in 1980
was $314 million not $1.3
billion ”
To arrive at this figure, Sliter
explained, “Take the value of the
opening inventory and add to it
purchases during the year, cost of
storage, cost of re-packaging and
shipping Substract from it the
value of the ending inventory, the
value of products donated in
foreign aid through PL-480 (that is
a subsidy to our state Department,
not a subsidy to farmers), subtract
the value of products donated by
the military (again, not a subsidy
to farmers), subtract the value of
products donated to schools and/or
human welfare programs (again, a
cost which should correctly be
borne by all Americans, not just
dairy farmers), and you have net
cost of doing business of $314
million not $1.3 billion.
“However, and a very important
however, as we forecast produc
tion for the current marketing year
and forecast commercial demand
for dairy products, the cost of
operations for CCC may be much
different than what I’ve just
reported CCC’s gross ex
penditures in the 1980-81 marketing
year may increase another $1
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billion to $2.3 billion and net ex
penditures may be in excess of $1 3
billion.
“A forecast of that magnitude
commands of us as an industry
that we intensify our efforts to
expand the commercial market for
dairy products.”
Uelner spoke on the future of
U S agriculture and identified
significant areas of change which
will affect farming’s relationship
with society in general Some of
these are a policy of low-cost food,
Third World growth, the energy
situation, rural population growth,
land and water use, increasing
farm productivity from harvest
and storage efficiencies and
computer-assisted automation
Keating, in her talk, criticized
Nader-type consumer activitists
and discouraging economic
competition, reducing consumer
choice, contributing to inflation,
resurrecting a suspicion of science
and playing on “a fear of the fic
titious epidemic, that of death and
dying ’’
She said; “Consumers footed the
bill or regulation at $102.7 billion
during 1980. Regulatory agencies
have come to act the role of
executive, legislative and
judiciary with agency rules
carrying the impact of law, for
med, passed and executed,
complete with penalties for the
disobedient ”
The organization which she
heads, Consumer Alert, works to
represent and educate the public
on consumer and environmental
issues.
The 137-member House of
Delegates, governing body for
UDIA, ADA, DRINC and NDC,
elected new Boards of Directors
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Seven regional caucuses elected
UDIA’s 25-person Board, which
contains five new members for
1981. The UDIA Board also directs
ADA and DRINC. National Dairy
Council’s 38-person Board has ten
new members. Following the
March 25 general session, the
newly-elected Boards selected
officers The president sof UDIA,
ADA and DRINC and the chairman
of NDC were re-elected for one
year terms
UDIA and its three operating
arms conduct a national promotion
program to increase consumption
of U S milk and dairy products
The program is funded by dairy
farmers, processors/handlers and
equipment/supply manufacturers
through member organizations
and affiliated Dairy Council units
It includes advertising, marketing,
nutrition research and education,
product and process research and
development, market research
and public relations
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