C4—Lancaster Farming, Saturday, October 24,1981
NATIONAL OUTLOOK
Retail prices gain slowly
The slowing rate of gain in milk
prices at the lam during January
July and stable wholesale prices
of dairy products since last fall
were reflected in a slowdown of
year-to-year retail price increases
for milk and dairy products.
The July Bureau of Labor
Statistics retail price index for
dairy products was up only 6.8
percent from a year ago.
This compares with a gam of 10.1
percent in the first quarter of this
year and 8.2-percent rise in the
second quarter.
The retail price reported by BLS
for a half-gallon ot whole milk was
$ 1.118, up 5 percent from a year
ago but down Va cent from March.
The butter price, f 1.992 a pound,
was 7 percent above last year but
was also down-from March.
The average retail price for ice
cream in July was $2,024 a half
gallon, up 10.5 percent from last
year but the price was unchanged
since April.
With milk and dairy products
likely to be in ample supply, year
to-year retail price gains this tall
can be expected to be relatively
small.
For 1981, retail dairy prices are
expected to average abut 8 percent
higher, neaV the increase expected
in the all-food price index.
Consumers spend more in 1980
Consumers spent $38.7 billion tor
milk and dairy products during
1980, up 12.9 percent from 1979.
This compares with a 10.9-
percent increase in expenditures
for all foods.
With consumption of dairy
products in 1980 unchanged from
1979, all of the increases was due to
higher retail prices.
in 1980, dairy tamers recieved
about $lB.B billion dollars for the
milk they’ve marketed, about 45 ‘
percent of the consumer’s food
dollar spent on dairy products
nearly unchanged trom the year
before.
In 1980, wages rose abut 8.7
percent while retail prices of dairy
products increased 9.8 percent. As
a result, the average wage earner
had to work longer to earn the
money to purchase dairy products.
For example, it took 15.5 minutes
to earn the money to buy a pound ot
butter in 1980, up from 15.1 minutes
in 1979.
Similar increases in the required
time worked to purchase fresh
whole milk, American cheese, ice
cream and evaporated milk were
also noted.
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Federal Order No. 2
New York-New Jersey
Milk Marketing Area
Uniform price increases
15 cents
Dairy farmers who supplied
milk plants regulated under the
New York-New Jersey marketing
orders during September will be
paid on the basis of a uniform price
of |13.83 per hundredweight (29.7
centsperquart;.
Market Administrator Thomas
A. Wilson also stated that the
uniform farm price per hun
dredweight was $13.68 in August
1981 and $13.31 in September 1980.
The seasonal incentive fund
returned a total of $3,848,826.38 or
$.450 per hundredweight to the
dairy farmers’ uniform price for
September. This fund was
generated by reducing the uniform
price paid to producers during the
high production spring months.
A total of 17,910 dairy farmers
supplied the New York-New Jersey
Milk Marketing Area with
856,217,803 pounds of milk during
September 1981. This was an in
crease of 3.8 percent (about 31
million pounds} from last year.
The gross value to dairy farmers
for milk deliveries was
$119,866,113.70. This included
differentials required to be paid to
dairy farmers but not voluntary
premiums or deductions
authorized by the farmer.
Handlers utilized 384,852,559
pounds of milk for Class 1, 44.9
percent of the total. The milk is
used for fluid milk products such
as homogenized, flavored, low test
and skim milks. For September
1981, handlers paid $14.78 per
hundredweight (31.8 cents per
quart) fo» Class 1 milk compared
with $13.98 a year ago.
The balance, 55.1 percent, was
used to manufacture Class II
products including butter, cheese,
ice cream and yogurt. For this
milk, handlers paid $12.52 per
hundredweight.
The uniform price is based on
milk containing 3.5 percent but
terfat. For September 1981, a
differential of 17.1 cents was ap
plied 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'2ol
- mile zone from New York City.
Federal Order No. 4
Mid-Atlantic Marketing Area
BASE MILK PRICE
$13.99 FOR SEPTEMBER
Middle Atlantic Order Market
Administrator Joseph D. Shine
announced a September 1981 base
milk price of $13.99 per him-
dredweight and an excess milk
price of $12.41.
The September weighted
average price was $13.98 and the
butterfat differential for the month
was 17.1 cents. The base milk price
was up 14 cents from August, while
the weighted average price in
creased 13 cents.
The September base price was 52
cents higher than last year. The
advertising withholding rate,
which is deducted from the base
and excess milk price and not the
weighted average price, was 13
cents a hundredweight and the
amount withheld totaled
$612,508.93.
The gross value of producer hulk
during September, was $65.6
million compared to $62.3 million a
year ago.
Shine said that producer milk
receipts totaled 471.2 million
pounds during September, a drop
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TERRE HILL SILO CO. INC.
ot 1.6 percent from August, but up
7.7 million pounds or 1.7 percent
from a year ago. This was,
however, the smallest year-to-year
increase since January 1980.
Class 1 producer milk totaled
237.5 million pounds and accounted
for 50,41 percent of total receipts. A
year ago Class I producer milk
totaled 255.4 million pounds and
represented 55.11 percent of total
milk receipts.
Base milk accounted for 91.44
percent of total monthly produc
tion. There were 7,245 producers
supplying pool handlers during the
month, a decline of 76 from the
previous month.
The average daily delivery per
producer was 2,168 pounds in.
September, a drop of 13 pounds ,
from August, but 59 pounds or 2.8
percent above fast September. The
average butterfat test of producer
milk was 3.57 percent compared to
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3.49 in August and 3.53 last Sep
tember. A total of 68 handlers were
included in the September pool, 5
more than in August.
Middle Atlantic order pool
handlers reported Class I in-area
milk disposition of 202.8 million
pounds during September, a drop
of 3.3 percent from a year earlier,
after adjustment to eliminate
variation due to calendar com
position.
State production increases
Milk production in Pennsylvania
during September 1981 totaled 728
million pounds, up four percent
from a year earlier according to
the Pennsylvania Crop Reporting
Service.
The number of milk cows in the
Commonwealth during September
averaged 714,000 head, the same as
a year ago. Milk production per
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