A3o—Lancaster Farming, Saturday, August 23,1981
Lehigh Valley Farms holds first annual meeting
ALLENTOWN - Atlantic
Processing, Inc., a federation of
dairy cooperatives that trades
under the name of Lehigh Valley
Farms, held its first annual
meeting last Tuesday here at the
Lehigh Country Club
Officials of the organization
reported sales of $122 million and a
net margin of $907,000 for the first
six months of the current fiscal
year
Chairman Alpheus L. Ruth, a
Berks County dairyman, told the
group that, in striking contrast to
the national milk marketing
conditions, API is not suffering
from a milk glut. In fact, he said,
the co-op “needs a lot more milk to
keep the plants humming.' ’
He noted API is adding con
siderable Class I fluid milk sales.
“In the months ahead, API needs
90 to 100 million pounds of milk
each month. Depending on the
month we’re talking about, that’s
10 to 25 million pounds more than
the members of the federation are
committed for.”
Ruth pointed out Lehigh Valley
Farms is one of the members of
API, accounting for about 60
percent of the federation’s annual
needs. He reported LVF is "on an
aggressive drive to attract several
hundred new members” and that
the co-op leaders "recognize the
opportunity to play an even bigger
role in the federation by providing
more milk.”
Part of the selling message is
that Atlantic guarantees a con
tinuing market for the farmeis
milk. Another is that API is
making money money they pass
on to the bargaining cooperatives
who ship milk to API in the form of
patronage dividends.
Ruth added individual farmers
are getting a distribution of cash in
amounts averaging $2OO. “These
bonuses are welcome to farmers,
especially in these tunes of
galloping inflation,” he said, citing
labor costs, equipment costs, and
• 'horrendous interest charges. ’ ’
The Berks dairyman stated
dairy farmers whose milk comes
to API "are in a relatively happy
position. They are in a marketing
chain that is making money, and
they are sharing in the proceeds. ’’
He lauded belonging to an
organization like API because it
gives bargaining co-ops the op
portunity to grow, permitting them
to prosper when there are wide
sweeping changes ip government
attitudes.
"The lower parity levels and the
anticipated cutbacks in purchases
by the CCC can be summed up this
way,” said Ruth * The govern-
ment is saying 1 licit;
more milk if you want to make
even more —• then you sell it Don’t
rely on Uncle Sam Find your own
markets ’ We have to be respon
sive to that attitude ”
Ruth urged farm organizations
to -spend less time on internal af
fairs and spend inoi e time
developing markets and satisfy nig
consumers.
In summing up the current
status of API and Lehigh Valley
Farms, Ruth stated, “We have
come a long way from the dark
years and we believe we are in a
position to make progress. ’ ’
President Robert P. Barry
predicted continued profits for the
balance of the year, but at a slower
rate in the third quarter. He
described the federation’s role as
“filling the void left by proprietary
dealers who have abandoned milk
marketing because of a lack of
commitment to the dairy industry.
Because of stockholder pressure
for profits, many dairy companies
have been reluctant to make the
capital expenditures needed for
growth. API is willing to make the
investment that will double or
triple our business.”
Barry and staff reported on
APl’s marketing program in
support of LITE, a lowfat milk. He
disclosed the beginning
distribution of LactAid, a specially
digestible milk for people who are
lactose-intolerant and have dxf-'
ficulty digesting milk. This ultra
pasteurized product will have an
extended shelf fife of 35 days.
The federation’s ice cream
operations were reviewed. Ac
cording to Barry, the recently
introduced Lehigh Valley Farms
all-natural ice cream has met with
tavorable consumer response in
Pennsylvania and New Jersey
markets.
In New York City, API acquired
the production and marketing
rights to the century-old Louis
Sherry ice cream brand.
4? ' Hr
Discussing Atlantic Processing’s and Lehigh
Valley Farms’ situation during the annual
meeting held for the first time last Tuesday
are: from left, Robert Barry, president;
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Alpehus Ruth, chairman; Herb Forest, director
of USDA dairy division; and Bart Patten, vice
president, finance.
L\,
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