The Milk
Cheek
TOM JVBCBAK
County Agent
Bingo
As predicted two months ago,
shippers to Order 2 handlers broke
through the billion pound barrier in
May for the first time since 1970.
You sent 1.03 billion pounds to
market for a daily average of 33.2
million pounds per day which was
an increase of 700,000 pounds per
day over April and 1.2 million
pounds a day over last May. Your
Class 1 sales dropped 2.4 per cent
to 12.2 million pounds a day the'
lowest since last August when
there were no school sales. That
left you with a Class I utilization of
36.7 per cent the lowest since
June, 1956. 1
Total production in Order 2 was
up 3.75 per cent over last year. But
that’s still below the national
average and only about half the
increase of seven percent for
Pennsylvania in April.
Because May is usually the peak Milk prices in the spring are
production month for Order 2, you expected to go down. But the Order
can figure you’ve also reached the 2 blend in May dropped 17 cents
peak of. marketing pressures to from April, and April was 20 cents
find a home for all the milk. It may unde,. March. These are high
also be some consultation to those compared to the two to six cent
400 producers in Order 2 who had to , drops between April and May of
find new markets back in March last four years, but just one
and April that they have survived more indication of the changing
another spring flush. But it must demand-supply picture and so
have left a lot of grey hair for much more milk being produced
many. v. , for processing.
There was still a lot of extra ~ The result is a blend price for
Penn Dutch Farm Systems, Inc. I I E! WeWduld Like This
And Ray Witmer Invite |J|iPII | Fit Jl 1 Opportunity To Show You
You To Be Our Guest M Our Quality Product
TUESDAY, JUNE 23, 1981
10 A.M. to 3 P.M., Rain or Shine
To Be Held At The
RALPH RUDY FARM
In Rebersburg, Centre County
Sealstor Area Representative Ray Witmer and
Management Personnel will be on hand to discuss the
advantages of Sealstor Structures and Laidig
Unloaders.
★ 15x38 SEALSTOR. High Moisture Grain
Structure For Shelled Corn and Laidig 43 Jr.
Unloader
21x43 SEALSTOR.
With Laidig 98 Unloader
★ Herd Averaging 18,000 Lbs.
REFRESHMENTS
N
Rt 192
W i « 1 t E
_T, . u .. 2 MilesX ★
To Centre Man To Lewisburg
FARM
s
marketing costs for milk that had
to be sold outsides the area. And
everyone pays for that either
directly or indirectly. Some of the
more direct costs reported were as
high as 32 a hundred on surplus
milk paid by producers in Federal
Orders with a base-excess
seasonal incentive where
production increases by individual
shippers are quickly identified.
' Here in Order 2, you can think
the coops for the increased
processing capacity that reduced
the direct costs to producers far
below what they might have been
in a billion pound flush.
However, there seems to be no
end in sight And already some of
them are looking ahead to further
expansion to meet their members’
needs for marketing their milk in
the future.
Seasonal Decline
*
-r s
SEALSTOR
Haylage Structure
Call For Additional _____ nnna
Information: 717-273-9324
PENN DUTCH
FARM SYSTEMS, INC.
May in Order 2 of $12.83 compared
to $l3 for April. The Mmnesota-
Wisconsm price for 3.5 milk
dropped three cents in May to
$12.61 giving you a Class II price
for Order 2 of $12.49 that was six
cents less than April. There was an
additional ten cents a hundred
deducted this month for the
Louisville Plan which makes it 40
cents for May and June.
The Class 1 price was only a
penny better than April. So, with
your low 36.7 per cent fluid milk
sales, it all adds up to 17 cents less
than April.
However, you should still have
more money to spend from May’s
milk than you did for April's
production. While you’re blend
price dropped 1.3 percent, your
production went up 2.2 percent.
This means that in spite of the
lower price there was still about $4
million more in the pool in May
than there was in March because
of the higher production. That
averages out to about $225 per
producer.
Maybe that wasn’t enough to pay
for the production increase and
maybe you never saw it in your
bank balance, but it was out there
for you if you were at least as ef
ficient as the averfage producer in
the pool.
June Dairy Month
Everyone has heard the
argument that the answer to our
present supply-demand imbalance
in the dairy industry is not in
producing less biit in selling more.
Perhaps that ought to be the
producer theme for June Dairy
Month because there is certainly
room for selling more.
' According to the Milk Promotion
Services of New England, the U.S.
ranks sixteenth among 29 nations
in the per capita expenditures for
promotion of milk and dairy
products. We spend only 26.8 cents
per person compared to Finland at
per person. That may be part
Come See and Compare, Then
You Will Know Why The Competition
, Is Talking About SEALSTOR!
1730 Highway 72 North
Lebanon, PA 17042
Lancaster Farming, Saturday, June 20,1981—Al 9,
of the reason why they sell 60
gallons of fluid milk a year per
person and we sell only 30'gallons.
If we reach agreement that we
should be selling more, then the
question comes up of who. should
pay for it. Right now therre’s a big
difference what in
dividual farmers contribute. And
those inequities should be-con
sidered.
Demanding voluntary con-
tributions is fme, but the record
shows that many benefit more than
they contribute. Then if we figure
out a way so everyone is paying
Penn Ag talks Sept. 15-17
EPHRATA The 103rd annual
convention of PennAg Industries
Association will be held Sept. 15 to
17 at the Buck Hill Inn, Buck Hill
Falls, Pa.
The program for the state-wide
trade association of agribusiness
firms will include both educational
and recreational activities for
members and guests. Included in
the three-day event will be a
reception and banquet to be held
June is
dairy'
ru/tuh
their fair share, how do we decide
how much Is enough? Then, who
gets it? Then, how do we spend it?
The stonewalling can go on in
definitely if we let it because we’ll
never figure out a system that
keeps everyone happy. Somehow
producers will have to compromise
on a system that provides the
greatest benefits for the greatest
number and go with it.
We’re the center of attention
around the world for our ability to
produce milk, but perhaps we can
learn from others how to sell it.
the night of Sept. 15, an “Old
Dus ties” Golf Tournament set for
the afternoon of the 16th, which
will- follow a morning of
educational meetings, and the
annual meeting and luncheon set
for the 17th. Both educational and
commercial exhibits will be part of
the convention display.
For more information about the
convention, or for reservations,
call PennAg at 717-733-2238.
NOTE:
SPECIAL PRICES
FOR ORDERS
PLACED AT
OPEN HOUSE
TODAY,
SATURDAY, JUNE 20
WE WILL BE IN
DUSHORE, SULLIVAN
COUNTY IN THE DAIRY
FESTIVAL PARADE.
SEE YOU THERE!