126—Lancaster Farming, Saturday, June 5,1982 Efficient dairy farmers save U.S. consumers milk dollars LANCASTER - More than 300,000 dairy fanners work hard to supply American with an ade quate supply of wholesome U.S. produced milk. Because of their expert breeding and feeding techniques, consumers pay less for dairy products than the average of all other foods. Even though all foods are ex pensive, dairy foods cost less. The shortages of milk experienced in 1973 and 1974 have been eliminated during the interceding years. By December 1981, dairy product prices increased 6% less than meat, 12% less than cereal and 14% less than fruits. In fact, dairy products increased 11% less than the average price for all foods. The chart is based on Bureau of Labor Statistics data with 1967 prices equal to 100%. Using that as an index, it means dairy products that cost $1 in 1967 now cost 12.45; meat costs have gone from $1 to $2.61; cereal costs to $2.78 and fruits to $2.84. The average of all foods that cost $1 in 1967 costs $2.76 in 1981. Another way to look at the low cost of dairy foods is to examine how much tune must be worked to earn money to buy them. For example, using preliminary figures published by USDA’s Economic Research Service (Dairy-Outlook & Situation, Sept. 1961), we find: It took 15.5 minutes of work to earn enough money to buy one pound of butter; 8.7 minutes for a half-gallon of milk; 9.7 minutes for a half-pound of American cheese; and 15 minutes for one half gallon of ice cream. In 1980, the commercial use of dairy products was down 0.8% and per capita consumption of dairy products was down 0.9%, the first decrease since 1974. In 1981, the commercial use of milk and dairy products (on milk-equivalent basis) will appr iximate a 1% in crease over 19.>0 to set a new record level. Per capita con sumption is expected to remain relatively static Total milk production for 1981 was up 4 billion pounds to 132.6 billion pounds Production per cow up 2 2% over 180 to 12,147 pounds. Total of milk cows up 80,000 (1%) over 1980 to 10 9 million. Of the total milk produced, approximately 50.6 billion pounds were sold as fluid milk and cream. Most of the rest were used in the production of other real dairy foods that are found in stores and restaurants; 24 7 billion pounds of milk were used to make butter When you consider that one quart of milk weighs 2.15 pounds and it takes 21.2 pounds of whole milk to make one pound of butter, that’s quite a butter pat. Con versely, it takes 10 pounds of whole milk to make one pound of cheese, and 36.5 billion pounds of milk were used. Government Programs Because the role of the dairy industry is to provide adequate supplies of dairy products to U.S. citizens, the government uses economic incentives for the dairy farmer. In effects the government assures the dairy farmer of a market for his milk if he will buy and breed calves that will be producing milk some 27 months hence. Only by providing this support for milk, can the U.S. government maintain its milk source. During the milk shortage in 1973-74, limited supplies of milk kept prices relatively high. Currently, milk and dairy products are in great abundance. But if production costs continue to rise, and the government continues to limit dairy fanners’ income, that situation could change drastically in the months and years ahead. □THE GRAVELY SYSTEM UNEQUALED PERFORMANCE IN THE GROUND, ON THE GROUND. ABOVE Wb’H give you a free The Gravely System of o' mow. till, hoe, sweep, fun remove snow do just During our spring sale you get your choice of any one of five attachments with the purchase of a new Gravely 2-wheel tractor. You can choose between our 30" mower, 40" 2-blade mower, rotary plow, rotary cultivator or toolholder with tools. OFFER EXPIRES JUME 3D. 1982 HeU&Mg&i'i marmTinc. TWO CONVENIENT LOCATIONS: 1755 W. Main St., Ephrata, PA 17522 222 E. Main St. Located on Route 322 Campbelltown, PA 17010 Phone (717) 738-1131 Phone (717) 838-6021 As of the moment, however, efficient dairy farmer; consumers can buy milk and dairy slowed the overall price i products for less money because f°r these valuable foods. SEP NOV OCT ■■ m INDEX; 1967 = 100 Source; Bureau of Labor Statistics s’ 1 \\ CHEESE ON BURGERS a picnic delight VALUES UP TO *6 DEC 283.8 Frui 277.7 Cen 260 5 Me; 244.8 Dan
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