D3o— Lancaster Farming, Saturday, April 17,1982
The Milk
Check
TOM JURCHAK
County Agent
More For Less
For the fourth consecutive
month, increases in milk
production brought lower blend
prices for fanner’s shipping to
Order 2 handlers. Increases of
760,000 pounds of milk a day in
February over January dropped
the Class I utilization to 41.8 per
cent even though Class I sales held
steady at 12.7 million pounds a day.
A Class I price of $14.81 that: was
four cents higher than January
was wiped out by a 10 cent lower
Class II price of $12.48, the lowest
since last June.
When all the figures were in, you
got a February uniform price of
$13.30 for 3.5 milk at the 201-210
mile zone. That was five cents less
than last month but 16 cents less
than last February
This was the third consecutive
month that prices were lower than
the same month a year ago
reversing a trend to higher prices
that lasted 49 months from October
1977 to November 1981 the
longest streak in Order 2.
In that time, the price went from
$10.35 to $13.74 for an increase of 33
percent. Perhaps not a spectacular
increase compared to the inflation
rate of the last four years but
better than beet, pork, poultry or
gram prices and a lot better than
the decreases in milk price that
loom ahead.
Increasing Decreases
The turn around started in
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December with only a three cent
drop below a year ago. It widened
to 11 cents in January and now to 16
cents in February. Earlier
estimates of price drops this year
were 25 cents under last year by
June but these will probably be
increased after an unexpected
drop m the Mmnesota-Wisconsm
Price Senes of nine cents in
February.
It had been holding steady at
$12.52 to 12.56 but went down to
$12.46 in one month. The indication
is that with continuing increases in
production it becomes increasingly
more difficult to maintain the
market prices with government
purchases of dairy products.
Butter purchases by the Com
modity Credit Corporation the last
week of February were the largest
in five years but even that rate is
not good enough to prevent
decreasing prices.
It’s no coincidence that along
with 49 months of increasing
prices, April will mark the 36th
month of milk production in
creases over the same month of the
previous year.
In January 1978, you shipped 808
million pounds of milk compared
to 919 million this year That’s a
difference of 3.6 million pounds a
day or 14 percent more milk. It
appears that the 33 percent in
crease in price was enough to
attract a 14 percent increase in
supplies.
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WASHINGTON D.C. - Ainu*
reports that some produce firms
are buying and selling or
repacking imported produce in
misbranded containers, Assistant
Secretary of Agriculture C.W.
McMillan recently announced a
step-up in the U.S. Department of
Agriculture program to spot-check
for misbranding.
“The industry can be seriously
affected by instances of
misrepresentation,” McMillan
said. “Recent checks at shipping
point and terminal markets have
turned up evidence that imported
produce is being marketed in
containers marked ‘Produce of
U.S.A./ ‘ldaho’ or other
misleading markings that indicate
the produce was grown in the
United States.
‘‘Under the Perishable
Agricultural Commodities Act,
incorrect state, country or region
of origin markings on containers
misrepresent the produce an
unfair trade practice,” McMillan
said.
The PAC Act, which is ad
ministered by USDA’s
Agricultural Marketing Service,
does not require an indication of
origin or any descriptive in
formation such as grade, weight,
count or size to appear on the
However, three months
declining prices in Order 2 is no
match for four years of increasing
prices and production with nc signs
ahead that farmers expect to
change their ways this year. I hope
it won’t take f our years of falling
prices to bring supply and demand
into line but neither does it look
like it will happen in one year.
- >' s ' "
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USDA warns produce industry
about misbranding
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container. But, if the information
does appear, it must correctly
represent the product, McMillan
said.
Recent spot-checks also
revealed that some foreign
shippers may be using U.S.
business addresses or firm names
that lead buyers to believe that the
imported product originated in this
country, he said.
“Using a firm name or business
address to mislead a buyer is
considered an unfair trade
practice,” McMillan said. “We’ve
also found instances where fic
titious names and addresses are
used for firms that do not exist.
“U.S. firms that ship, sell or
offer for sale goods received in
interstate or foreign commerce
are responsible for the integrity of
the markings and contents of the
container,” he said.
“Foreign shippers or unporters
who misrepresent a product also
put their customers in jeopardy.
Retailers, dealers and other
buyers can be seriously affected by
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misrepresentation,” McMillan
said.
“To avoid misbranding
violations and possible actions
against their PACA licenses, firms
that trade or repack unported
produce should carefully review
containers to determine if they are
properly labeled,” he said. “Any
misrepresentation should be
marked out immediately and
reported to the seller.”
Answers to specific questions on
how to avoid misbranding can be
obtained by contacting Floyd
White, Fruit and Vegetable
Division, Regulatory Branch,
Agricultural Marketing Service,
U.S. Department of Agriculture,
Washington, D.C. 20250; telephone
202447-5073.
Information can also be obtained
from the following PACA Regional
Offices: Thomas R. Walp, Los
Angeles, Calif., 213 602-7766; Jack
C. Morris, Chicago, 111.,312 922-
0328; Joseph E. Ward, Fort Worth,
Texas, 817 335-1630; Harry G.
Apostolens, New York, N.Y.. 212
732-3193.
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