D26-Lancaster Farming Saturday December 22,1984
The Milk
Check
TOM JUBCHAK
County Agent
Call Order
The news this month in Order 2
was the issuance of a “call order”
by the Market Administrator. It
wasn’t big news in terms of the
number of handlers or pounds of
milk involved, but it was the first
time in 35 years that it has hap
pened. It was important news in
that it demonstrates one of the
basic requirements of federal milk
marketing orders and the sen
sitivity of responding to changing
marketing conditions. Since it
happens so rarely I though it would
Huntingdon Co
Branstetter Farms
96
Geary E Shade
Paula
Globe Run Farms
Fashion
Chester&Carole Smith
223
211
Roland G Yoder
Billie
State Correctional
682
333
Max Isenberg
Tinker
Maxine
Glenn Peachey
Linda
-Jilhe
Brenda
Stella
Locust Lane Farm
0101
0136
Philip A Yohn
9817
1174
Willard J Yoder
125
N&N Farm
Y 96
Tom & Gloria Coffman
Marvel
be of interest to you to learn when
and how it works and, in the
learning, dispel some of the
misconceptions about it.
Just to bring you up to date, the
“call order” was issued by the
Market Administrator in Order 2,
requiring all handlers in the pool
receiving milk from producers to
sell at least 10 percent of their
receipts for fluid use during the
month of December to maintain
their designation as a pool par
ticipant. The order was issued on
November 29 following a public
(Continued from Page D 25)
298
305
294
305
305
305
305
300
3-10
5-3
305
305
6-6
8-11
6-6
4-4
305
305
305
305
305
305
305
305
305
305
305
DHIA
811
21,225
808
20,167
808
19,665
807
750
20,437
17,594
806
19,290
806
771
16 442
18 601
802
761
22,185
22,253
790
785
778
753
22,646
19,991
17,715
22,365
789
753
22,460
18,506
784
760
21,512
22,001
19 428
776
761
20,004
22,035
758
meeting in Syracuse on November
20 where proprietary handlers and
co-ops had an opportunity to give
testimony on the need for such an
order.
The authority for such action
comes from one of the basic
requirements of federal orders “to
provide an adequate supply of fluid
milk for the marketing area.”
However, it doesn’t mean that
there has to be a shortage of milk
in stores, only that some handlers
are having trouble getting all the
milk they want for fluid use. So, the
Market Administrator through the
“call order” tells handlers with
less than 10 percent of their milk
sold as Class I to move more of it
into that use to be sure that every
handler who wants it can get it.
When to issue the order is based on
the judgment of the Market Ad
ministrator, with no specific
guidelines provided, but you can be
sure he’ll err on the side of too
much rather than too little fluid
milk.
So, before you jump to the
conclusion that there are
widespread shortages of fluid milk
in the Order 2 marketing area, let’s
see what a 10 percent call order
would do. First, because are only a
small number of handlers who
regularly sell less than 10 percent
of their milk for fluid use, it af
fected less than five percent of the
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DEALERS INQUIRIES INVITED
Handlers. Then, considering the
amount of milk involved in a pool
that includes over 900 million
pounds a month, it was probably
less than one percent of the milk.
So, while the numbers may not be
large, it does demonstrate the
quick action that can be taken by a
Market Administrator to protect
the interests of producers and
consumers as part of this
responsibility in administering the
order.
Why Order 2? Well, each milk
marketing order is a separate body
of rules regulating the handlers
(not the producers) in a specific
marketing area. Each order may
have different requirements that a
handler must follow to participate
in a pool or be a designated handler
to sell a certain part of his milk for
fluid use every month to maintain
his designation. In Order 2 this is
required only in the first year that
a handler is “earning” his
designation, and after that he can
sell it for whatever use he wishes.
However, the supply situation in
Order 2 in December has happened
before without the need for a call
order when handlers voluntarily
moved milk to fluid sales at the
request of the Market Ad
ministrator, but this time a call
order was thought to be necessary.
Reasons for this are largely in the
changing market structure in
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Order 2, especially in the last ten
years. Milk production is at a
record high and Class I utilization
is at a record low. Even as late as
1973 over half the milk in the pool
was fluid milk, but last year it was
down to 38 percent. To market all
this milk proprietary handlers and
co-ops have expanded their
capacity to make manufactured
dairy products, particularly
cheese, and, in fact, have become
somewhat specialized in making
some of these products. Today
handlers generally are more
reluctant to give up their supplies
for other uses, so to be safe, the
Market Administrator required
them to do it.
Reports are that all handlers
affected complied with the order so
that fluid supplies will be ample for
all handlers in December. Whether
or not the order will be continued in
January or February has not yet
been announced by the Market
Administrator, but you’ll know
before the end of this month.
Yes, Virginia, there is a Santa
Claus. At least it seems that way
when December milk checks to
producers shipping to Order 2
handlers will have an increase of
eight cents over last month and 28
cents over last year. At $13.91 for
3.5 milk at the 201-210 mile zone it
(Turn to Page D 27)
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