050 01b192240 TO* , c DIVISION 16802 —" VOL. 30 No. 26 April milk production up at least 2% over ’B4 BY JAMES H. EVERHART Milk production throughout the Northeast increased at least two percent in April, causing concern that the dairy industry is once again headed for unhealthy sur pluses. The increase, dairy economists note, is in apparent response to favorable grain prices, and only partly a result of the end of the federal dairy diversion program. Two weeks ago, USDA officials confirmed that the nation’s milk output in March climbed 1,1 percent over previous-year levels At tHat time, dairy experts in dicated that a spring flush of Farmers seek balanced budget and expanded foreign markets BY SUZANNE KEENE WASHINGTON, D.C. - While* each commodity group would like to see a farm bUI that Caters to its individual interests, all share a common desire for a balanced budget and expanded foreign markets. In a panel presentation at the USDA’s Farm Women Forum in Washington last week, commodity representatives stressed the need for a farm tell around which all farmers can unite a fiscally responsible plan with a market orientation. Tom Cook of the National Cat tlemen’s Association seemed to be speaking for many on the panel when he said farmers are willing to take their share of the budget cuts necessary to reduce the deficit. However, Cook added, they believe other parts of the budget left un touched by Reagan’s proposed plan should be cut as well. Panel members were also concerned about the effect of the strong dollar on farmers’ ability to compete in the world market. All said they would like to see ex panded foreign markets and are taking steps to achieve that goal. Darwin Stolte, U.S. Feed Grams Council, said his organization is Though Dave Reinecker is probably best known through his activities with the state and national Pork Councils, there isn’t much about larming-or life, for that matter-that doesn’t interest this enterprising Adams County farmer. Read about the Reinecker operation on page A-22. - -—— ~ ~ Four Sections surplus milk could have dire consequences for the dairy in dustry, both in the marketplace and in the U.S. Congress, where new dairy legislation will be for mulated later this year. Officials at Eastern, NEDCO and Inter-State cooperatives all say preliminary figures show milk production is up a solid two to three percent since April 1. Sketchy information available from Federal Order No. 4 (Middle Atlantic region) would seem to confirm those trends. In Order No. 2, however, conflicting reports indicate a smaller increase, or even possibly a decline in April, concentrating its efforts on world markets, especiaDy i'n Third World countries where it see* the greatest potential for market growth. “We see piore per capita pur chasing power in these economic*,” he said. Per capita Strong dollar 9 excess supply, plague agriculture markets BY SUZANNE KEENE WASHINGTON - The strong value of the dollar, dwindling foreign markets and excess supplies are creating problems for many farmers, a panel of market experts told par ticipants in USDA’s Farm Women Forum in Washington last week. Panel members shared their knowledge of the current foreign anfl domestic markets for various commodities and made projections about future prices and markets Prices lor all grains are running close to loan rates, said Eileen Manfredi, World Lancaster Farming, Saturday, May 4,1985 over previous-year levels. “Everybody is seeing an in crease,” said Robert Dever, assistant general manager at Inter-State, “and it’s more than anyone had anticipated.” The current surge in production, according to Eastern’s manager of economics and governmental relations, Joe Mathis, is actually a typical springtime increase. “It would appear that we are going to experience a more normal flush situation this year, than we did in 1984,” he said. year, he said, the negative economic situation and the dairy (Turn to Page AlO) growth m these areas has shown a 13 to 19 percent annual increase, while in developed countries the rate is only seven to nine percent. Stolte said he sees the world market expanding, but questioned whether the United States will be (Turn to Page A 37) Agricultural Outlook Board With supply outstripping demand, "We do not see a rosy outlook for grams next year.” she reported. The excess supply ■should mean depressed prices in the future Both U S and foreign supply prospects are bright, with good corn and wheat crops expected this year. Manfredi said But while supply is good, domestic demand for grain has been static Demand could increase, but it probably won’t rise enough to affect prices, she said Foreign demand is also in a (Turn to Page A 39) '‘INSIDE this issue Milk production throughout the Northeast appears to be experiencing a normal spring flush, as production figures rise to new highs. Other CQaftpg drafted in plan to aid NEDCO BY JAMES H. EVERHART ALBANY, NY - New York State Commissioner of Agriculture and Markets Joseph Gerace is spearheading a high-level effort to offer financial help to the troubled Northeast Dairy Cooperative Federation, Inc. Gerace reportedly held a meeting between NEDCO officials and heads of other dairy co-ops to find ways in which the other organizations could help bolster NEDCO’s sagging fortunes. And although the’v*oom missioner’s office declined to disclose the nature or substance of the talks, Deputy -Commissioner Edgaf King said the department is having “plmost daily” con versations' with the' ailing federation, regarding its current financial flatus and measures pnftposett’W alleviate some of the problems. “It’s no secret in the trade that NEDCO is meeting with other ’peopk m.the trade, hoping to find a Anne and Marty Grey of York find that running is a great way to keep fit. While many farm folks claim they just don't have time for exercise, the Greys say their health is important enough to make time. For more on the Greys, turn to page 82. — ~ -• 17.50 per Year solution to their problems,” King said. In a related matter, the Department also disclosed that it has launched an investigation into the “price war” situation that is blamed for some of NEDCO’s woes. The department has subpoenaed the records of virtually every major player in the central New York fluid milk market, including NEBCO and other producer organizations like Dairy lea, and some major handlers in New York City. According to Thomas Conway, counsel to the Commissioner, the investigation is designed to determine “if there is destructive competition,” in violation of state law. The department ordered the investigation after receiving complaints of “sales below cost by a number of different dealers,” Conway said. The inquiry, initiated (Turn to PageAlO)
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