NATIONWIDE
Retail price gains slow
The decline in farm milk prices
since January and stable
wholesale dairy product prices
since last fall were reflected in a
slowing in year-to-year retail milk
and dairy product price increases
during February, March and
April.
The Bureau of Labor and
Statistics retail dairy products
index for Apnl was 243.5, (1967
base = 100), up only 0.9 index
points from March and 1.4 from
February. Relative to a year ago
the mdex was up 10.3 percent in
February, 10.0 percent in March
and 9.5 percent in April.
With milk and dairy products to
be in abudant supply during
coming months, year-to-year price
gams at the grocery store should
be less than the April increase.
For the year, retail dairy prices
are expected to average 8 to 10
percent higher, compared with a
likely increase of about a tenth in
the all food price index.
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The retail price reported by BUS
for a half-gallon of fortified fresh
whole milk during April was ?1.116,
up 9 percent from a year ago.
During 1960, the average retail
price of whole milk was about 51.05
per half-gallon.
The 1980 farm value as reported
in Developments in Farm to Retail
Price Spreads for Food Products in
1980, was 58 cents, up about 6 cents
from 1979 about 55 percent of the
retail price. The farm-to-retail
price spread was 47 cents, up 3
cents from 1979. The spread in
creased 7.5 percent m 1980, con
siderably below the 13.5 jump m the
marketing cost mdex.
Retail prices for butter as
reported by 818 averaged 51.991
per pound in April, up a tenth from
a year ago. During 1980, the
average retail price for butter was
about 51.88 per pound. The 1980
farm value was about 51.25 per
pound, up about 14 cents from 1979
about 67 percent of the retail
price.
The farm-to-retail margin for
mos h
FEATURING - COVERED UTILITY. ALL-PRO.
AND HANDYMAN MODELS
DEALERS:
WHITE OAK LAWN t LEISURE
329 W Huh St Mjnheim Pa
MGS RETAIL SALES
RD 3(NearZmnsDiner)
Denver Pa
215/2(7 752*
butter was 62 cents m 1980, 5 cents
more than m 1979. The 9-percent
increase in the spread occurred
largely m the processing margin
which totaled 18.6 cents m 1980, 4
cents (27 percent) more than in
1979.
BLS reported that the retail
price for yogurt during April was
49.2 cents per bushel, up 7
percent from last year. The
average ice cream price was 52.024
per half-gallon m April, up 14.4
percent.
Per capita use expected to be
steady
Per capita consumption of all
dairy products (on a fat solids,
milk equivalent basis), will likely
be unchanged during 1981.
Even though purchases by USDA
under the price support program
will increase, CCC donations likely
will not. Although commercial use
will be up, so will the population
and per capita consumption will
likely hold steady.
Per person use of milkfat
decreased to 20.4 pounds in 1980
from 20.5 m 1979, a decrease of 0.5
percent for the average American.
Larger per capita consumption of
cheese and ice cream nearly
balanced out the lower per person
use of fluid products. Butter,
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MoS
Lancaster Farming, Saturday, July 25,1981—15
cottage cheese, canned milk and
dry whole milk were unchanged
from 1979 levels.
On a milk fat basis, 1980 civilian
per capita consumption of milk
and dairy products totaled 554
pounds, down 1 percent (5 pounds)
from 1979. Per capita use of milk
sohds-not-fat was 37.4 pounds, a
decline ol 1.6 percent from a year
earlier.
INTERNATIONAL MARKETS
On April 6, the European
Community (formerly the Com
mon Market), put mto effect new
support prices for dairy products
for 1981-82.
The target price for fluid milk,
(the price the producer should
receive according to the EC
Commission), has been increased 9
percent, from $12.12 to $13.21 per
cwt. The intervention price for
butter has been increased 9 per
cent, from $1.59 to $1.73 a pound, as
has nonfat dry milk, from 66 cents
to 72 cents a pound.
Intervention prices are the
prices at which intervention
agencies are obliged to buy
products offered to them. The milk
producer tax for 1981-82 has been
set at 2.5 percent of the target price
under the same conditions as the
current basic tax. However, ap
plication of a larger tax, which had
been proposed by the EC Com
mission, was rejected although
the EC Agricultural Council will
take steps to offset any extra costs
which arise if the volume of milk
supplied in 1981 increases more
than 1 percent over the 1980 level.
Federal Order No. 2 New York -
New Jersey
Dairy farmers who supplied
milk plants regulated under the
New York-New Jersey marketing
orders during June will be paid on
the basis of a uniform price of
$12.83 per hundredweight (27.6
cents per quart). ~
Market Administrator Thomas
A. Wilson also stated that the
uniform farm price per hun
dredweight was $12.83 in May 1981
and $11.92 in June 1980.
The seasonal incentive fund
removed $.40 per hundredweight
from the dairy farmers’ uniform
price for June, a total of
$3,858,328.70. Deductions for this
fund for March through June 1981
aggregated $12,829,421.28. The
fund, plus interest, will be
distributed in the August through
November uniform price
calculations.
A total of 17,512 dairy fanners
supplied the New York-New Jersey
Milk Marketing Area with
964,582,176 pounds of milk during
June 1981. This was an increase of
2.5 percent (about 23 million
pounds) from last year. The gross
value to dairy fanners for milk
dehvenes was $124,476,294.55. This
included differentials required to
be paid to dairy fanners but not
voluntary premiums or deductions
authorized by the fanner.
Regulated milk dealers (han
dlers) utilized 358,452,150 pounds of
milk for Class 1,37.2 percent of the
total. This milk is used for fluid
milk products such as
homogenized, flavored, low test
and skim milks. For June 1981,
handlers paid $14.89 per hun
dredweight (32.0 cents per quart)
for Class I milk compared with
$13.93 a year ago.
The balance, 62.8 percent, was
used to manufacture Class II
products including butter, cheese,
ice cream and yogurt. For this
milk, handlers pqid $12.48 per
hundredweight.
The uniform price‘is based on
milk containing 3.5 percent but
terfat. For June 1981, a differential
of 17.0 cents was applied to the
price for each one-tenth of one
percent that the milk tested above
or below the 3.5 percent standard.
All prices quoted are for bulk
tank milk received within the 201-
210 mile zone from New York City.