A24—lancatfT Farming, Saturday, January 21,1984
Inter-State District II primed on promotion
BY TRISH WILLIAMS
COCHRANVILLE - Milk
promotion, what is being done and
how to gear up for higher milk
sales, was the central focus of
discussion Thursday at the Inter-
State Milk Producers Cooperative,
District 11 annual meeting.
Dairymen were told by Dick
Norton, manager of the Atlantic
Dairy Association, that whether
they were involved previously in
voluntary milk promotion
programs, that, “We will all be
partnersin promotion in 1984.”
Norton, was referring to the
mandatory 15 cents deduction for a
national milk promotion program
that is scheduled to begin
sometime this spring. Discussions
among dairymen at the meeting
seemed to indicate a stronger
tendency to support a long range
promotion program than par
ticipation in the Milk Diversion
Program.
Inter-State’s 1983 schedule of
operating expenses also pointed to
this trend towards more
promotion. Last year the milk
marketing cooperative spent
$71,191 dollars on promotion, more
than double the amount that was
spent the previous year.
Officials of Inter-State are
seeking an amendment to the
present voluntary milk promotion
program in Federal Order 4,
reported James Fraher, economist
for Inter-State. The amendment
being sought calls for a reduction
in the amount voluntarily con
tributed from 14 cents per hun
dredweight to 10 cents. This comes
as a result of the new national
promotion program, which
mandates a 15 cent deduction, of
which 10 cents can be contributed
to an existing promotion program.
Fraher told members that there
would be no suspension of the
Order 4 base period next fall due to
the new Milk Diversion Program.
He said, Inter-State did not request
a freeze on bases from Order 4
because they felt it would be unfair
to dairymen who were not par
ticipating in the diversion
program.
“Present guestimates for par
ticipation in the program indicate
a reduction in overall production of
about six percent,” the economist
said
He advised farmers to plan on a
$1 reduction in the price of milk
throughout the diversion program
when figuring whether to contract
to reduce their production.
Inter-State made a net margin of
$993,772 in 1983, Fraher said.
Improvements were made at the
Holly milk plant during 1983, that
will give the co-op more flexibility.
The improvements were costly,
but makes the Holly plant better
equipped to work as a balancing
plant, and so should result in in
creased profits in the future.
Fraher also reported as a result
of increased interest in component
pricing by members, a committe
has been formed to work toward
implementation of a component
pricing system.
Steve Mason, Oxford local
delegate to the Inter-State annual
meeting, reported on the new
quality premium program which
SERVING THE FARMERS
FOR 111 YEARS
HAMBURG SAYINGS
Ehlf and
tdiict rnuPANY
iioitti oirosu co»rw*n«'N I IIMW I WWlfli rtll I
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Steve Mason, Oxford
Cochranville local
became effective on Jan. 1. The
program pays producers who meet
stringent quality standards a
seven cents premium per hundred
weight for their quality milk.
Mason said, Inter-State producers
last year received the highest
average gross income since the co
op’s inception. Inter-State has
expanded its marketing area,
mainly into New York City, he
added.
“You can count as one of your
Ai ' v * %
he two district 11 locals are
left, and Duane Hershey,
local,
blessings that you are in one of the
most populated areas of the United
States,” Dick Norton told mem
bers.
Speaking on the power of
promotion, Norton said, we need to
be more aware of age
demographics, listen more
carefully to consumers’ desires
and spend most of our advertising
dollars where largest con
centrations of people are, the
urban areas.
Thanks and Congratulations
Robert
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A 25 year membership award was presented to the William
Hostetter Family. Accepting the award from Steve Mason on
behalf of the family is Bill Hostetter, right.
Norton made a colorful audio
visual presentation of milk ad
vertisements that will be aired on
TV, radio and billboards in the
coming year.
Following the program, newly
elected officers of district 11 were
announced. Serving the
Cochranville local will be, Duane
Hershey, president; Charles
Hams, vice president; Harry
Troop, secretary-treasurer; Harry
Rohrer and Family
of Washington Boro, PA
BUILT BY:
to
TENS
Troop, Terry Stauffer, and James
McClellan, delegates; and,
Williams Shepherd, hauling
committee.
Serving the Oxford local will be,
Stephen R. Mason, president;
Charles Moore, vice president;
Hoopes Yarnall, secretary
treasurer; Charles Moore, William
Hostetler, Joel Brown, and James
Pebble, delegates; and William
Shepherd, hauling committee.
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