The Milk Check TOM JUBCHAK County Agent MERGER PROPOSED After two months of exploration and examination the directors of Dairylea have unanimously recommended to the members that they approve a merger with Associated Milk Producers, In corporated of San Antonio, Texas. In a letter to the members last week it was announced by the Oairylea directors that in formation meetings would be scheduled throughout the milk shed the third week of September. Here the members could hear from and AMPI represen v stives the benefits of such a merger and how it would be arranged. Final approval, however, still must come from the members voting individually be secret ballot after the information meetings. JOINING A GIANT AMPI is the largest dairy co op in the country with 32,000 members marketing 15 billion pounds of milk a year. It started in Texas 12 years ago but after ex panding to 22 states its largest t\/tt tf=:t ,t ,f=:t=p ■ ■ Skills Coolers® EEFtee Hot Water HHPerPorm Cooing 3.1 MueHer-Matic Washing [StMtoi] .. .Why settle for less. FOR MORE INFORMATION, CONTACT: RUFUS BRUBAKER REFRIGERATION 614 Penryn Rd. • Authorized Mueller Dealer • Dependable 24 Hr. Service • Mojonnier Parts Available USED TANKS AVAILABLE... • 500 Gal. Mojonnier • 1,000 Gal. Mojonnier • 500 Gal. Girton • 800 Gal. Mojonnier (2) • 600 Gal. Girton • 600 Gal. Mueller membership is now m the Wisconsin area. There are now three separate regions in the co-op and if Dairylea membes approve the merger it will become the Northeastern Region of AMPI but retaining the Daifylea name and brand marketing program. Each region of AMPI is responsible for its own operation, has its own Board of Directors and pays producers out of its- own regional pool. Dairylea members would also be represented on the 32 member board of AMPI. With assets of $320 million and $lOO million m member equity AMPI operates 39 plants (two in Pennsylvania) in a milk shed that extends from Canada to Mexico and from New Mexico to Ohio. OPPORTUNITY KNOCKING? Oairylea directors claim that after unsuccessful attempts to combine forces and facilities with northeastern cooperatives the opportunity to jom AMPI was the best alternative to improving their competitive position-m the market. Hopefully, the merger would ... only from Manheim, PA 17545 717-665-3525 provide new capital at lower in terest rates; more efficient use of manufacturing plants and the benefit of success proven management skills. Operated as a division of AMPI the merger couldn't cure all the ills of nor theastern milk marketing but the Dairylea members the directors feel it’s a long step in the right direction for them. For AMPI, the merger would provide market penetration in the populous nor theast plus some innovations in the consumer product marketing not now part of their program. It might be viewed as the merger of the financial Goliath and the marketing David but guarantees are assured to maintain Dairylea identity and control. When a 5,000 member co-op merges with a 32,000 member co op the possibility exists for identity loss but this can be avoided as the organizational lines are drawn. There are risks in every change and members bothDairylea and AMPI have the responsibility of determining the .safeguards to minimize risks and the value of the benefits that can result. Dairylea directors have opened what they feel is the door of opportunity. It’s now up to the members to decide if they want to step through. LOOK AGAIN When you get your milk check from an Order 2 handler this month you may get the idea that the blend price in August was 35 cents higher than July. It was but it wasn’t. True, August milk at $13.68 was 35 cents higher than the $13.33 you got m July but that 35 cents was your pay back as part of the Louisville Plan. You put it in last Spring from Budget Fitting Case 210 This tractor is tough. At a price that isn’t. The Case 210 delivers. There’s no scrimping on this machine. Four-speed transmission. 10-hp Kohler engine. Rugged cast iron front axle. Heavy-duty king pins! Welded frame. Electric start. Headlights. Snap-Fast attachment system. 210 Case Tractor with 38" Mower $2499 SALE $ 2099 Also 10% Financing Available Lancaster Fanning, Saturday, September 26,1981—C33 March to June and you’ll be getting it back with interest from August to November. So, while the uniform price will be $18.58 the real market price was only $13.33 the same as July. In fact taking out all the Louisville Plan money your blend price in Order 2 has been dropping from $13.46 in January and February to the current $13.33 in July and August. LOOKAHEAD Even looking ahead won’t cheer you up because there just seems to be more of the same. Some slight strengthening in butter, cheese and powder prices seems to be detectable if you look very hard but the Minnesota-Wisconsin price dropped another six cents in August to |12.47 the lowest so far for this year. - However, estimates are that it will start picking up a little next month. Much of the problem centers on getting your Class 1 utilization over 40 per cent. Your production of 898 million pounds last month set a record for August in Order 2 and your Class 1 sales of 358 million was the lowest for the month since 1956. It’s for such reasons that your blend price never to go anywhere ex- NEED MORE ROOM? Read The Classified e««e on you ouvsmove over/ Rea I Estate Ads cept down when you peel off all the incentive attachments. BITTER BUTTER The House Subcommittee on Livestock, Dairy and Poultry gave their stamp of approval to the sale of 220 million pounds of CCC butter to New Zealand for 70 cents a pound less than half the present support price of $1.49 a pound. However, they took note of the “interference” of the State department in not allowing the sale to Russia at a higher price even though grain sales were recently negotiated. They also noted that New Zealand contributes to our dairy price support costs by exporting their casein to us at below cost prices to compete with our milk powder. They even said that assurances that New Zealand wouldn’t sell our butter to Russia were meaningless because sub stitutions could be made so easily and big profits could be realized. ‘ And, having said all this, the subcommittee did nothing but ask the USDA to try to do better the next time. So remember, that the next time the State department will still be calling the shots. % STRIKE IT RICHI SELL IT WITH A LANCASTER FARMING CLASSIFIED
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