VOL 30 No. 30
Penn Mar seeks support to buy packing plant
BY JACK RUBLE Y
LANCASTER United we
stand. And divided, we’re out of the
hog business. This message rang
loud and clear at a meeting held by
the Pennsylvania Farmers
Association’s marketing division,
PACMA, and the newly formed
Penn Mar Cooperative at Lan
caster’s Farm and Home Center on
Wednesday night.
“If you’re going to exist as an
individual farm, you're going to
have to compete with the big in
tegrators,” Penn Mar president
Gene Eisenbise told Lancaster
County hog producers. “And you
Penn Mar president Gene Eisenbise discusses the purchase
of Shamokin Packing with Lancaster County hog producers
Seated are Penn Mar financial advisor John Cole (left), and
Royal Palmer and Howard Goss of PACMA
INPUTS: The things that go into dairying
LANCASTER Once again,
Lancaster Fanning launches its
exclusive coverage of the dairy
industry, in recognition of National
Dairy Month.
Coverage this week will deal
with “Inputs,” or the raw
materials that are needed to
maintain a successful dairy
operation.
We’ve attempted to take a look
at the less obvious requirements -
like capital, knowledge and labor -
as well as the more widely
acknowledged inputs like grain
and feed.
In succeeding weeks, we’ll deal
with many other dairy topics like
production, genetics, breeding,
pricing, marketing, products and
promotion.
In each, we’ll try to provide
coverage that is comprehensive
and, yet, specific. . . dealing with
the larger issues as well as the
more specialized concerns of in
dividual dairymen.
Here’s a rundown of the stories
presented in this week’s edition:
• Labor: Paul and Dave
Countryman of Somerset County
have a new worker in their Bfrcow
bam the first Farmtronix
computerized stanchion feeder
installed in the East. For more on
their interesting operation, turn to
page D 2.
• Crops; Many of the region’s top
dairymen have received a lot of
advice and assistance over the
years from local Crop
Management Associations. CMAs
assist local farmers with duties as
varied as insect, disease and weed
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Five Sections
can become your own integrator
by joining with other farmers.”
Eisenbise emphasized that pork
producers hoping to earn a living
strictly on the production end
faced a bleak future. Farmers
willing to become involved in the
processing and marketing of their
product would be the survivors, he
said.
And the Penn Mar Cooperative
offers one avenue of involvement,
Eisenbise pointed out. Organized
in Selinsgrove three months ago,
Penn Mar’s mission is the purchase
of the Shamokin Packing Com
pany.
control, seeding, fertilizer
requirements and a host of other
issues. For more, turn to page Dl2
• Feed: Can a dairyman make a
“go" of it by purchasing all his
feed’ Dum thinks so, and, as
a result, he’s had more - time to
devote to cow-oriented tasks and
opportunities. Read more on
Dum’s Lancaster County operation
on page D2O.
• Capital; Jim and Norma
Warner of York County have
proved that you can build a dairy
barn without going into hock. After
years of following a philosophy of
“don’t buy it unless you have the
money,” they have a full-fledged
dairy operation. For more on the
Warners and their “dream-come
true,” turn to page A 22.
• Housing: Dry-cow handling
has been a concern of the Smyser
brothers in York County for years.
They recently solved some of these
problems by building an at
tractive, airy, dry cow and
maternity bam. Turn to page A2O
for more on their efforts.
• Knowledge: With the dairy
business’ growing complexity,
there’s a need for well trained and
educated dairy professionals. Kim
Stroud, Kathy Strock, Nancy
Jarrett and Sylvia Cooper have
received training at the area’s top
ag schools, and are making varied
contributions to the industry. Read
about these dynamic ag women on
page 82.
Other stories of interest to
dairymen include dairy princess
activities and an interview with
Lancaster Farming, Saturday, June 1,1985
According to Eisenbise, Penn-
Mar has an agreement to buy the
plant for $1 million, a figure that
includes $750,000 for the building,
plus $250,000 for trucks and in
ventory.
An additional $450,000 will be
needed for improvements to the
facility, comprised mostly of
additional freezer space to bring
the plant up to capacity. And
$300,000 will be slated for a
research and development fund
and a contingency fund. A $1
million open line of credit will also
be established, bringing the total
package to $2.75 million, according
to Penn Mar financial advisor John
Cole.
One big advantage in acquiring
the Shamokin plant is that the co
op won’t be resurrecting a dead
horse, according to PACMA’s
director of marketing development
Howard Goss. The Shamokin plant
is a profitable concern, says Goss,
and generates about $l4 million
worth of business annually.
Zoning, sewer and water are all
adequate, Goss added.
Penn Mar reports that 27
producers have already bought
into the program by purchasing
one share of common stock at
$l,OOO. But additional investors are
needed, and Eisenbise estimates
that a total of 100 producer
members will be able to keep the
plant running at capacity, based on
Pennsylvania Dan v Princess
Lynettc Loper Readers can find
those stones in Lancaster Far
ming’s B section
JUNE IS DAIRY MONTH
the co-op’s preliminary estimates
of average per-farm market hog
production. The Shamokin plant
can handle 600 hogs and 30 cattle a
day, Goss said.
In addition to a share of common
USDA weighs approach
to ag export credits
BY JAMES H. EVERHART
WASHINGTON - Controversy
continues to swirl around the topic
of agricultural Exports, as the
USDA prepares to announce its
program to use U.S. ag surplus
stocks as bonuses to encourage
other countries to buy our farm
commodities.
Although originally indicating
satisfaction with the Ad
ministration plan, the American
Farm Bureau is now expressing
considerable anxiety over in
dications that the USDA will be
pressured into accepting a
“shotgun” approach that would
“dump” U.S. surplus commodities
on the international market.
Instead, Farm Bureau officials
said, the nation’s largest farm
organization favors a plan to
Once again, Lancaster Farming
will publish dairy- and milk
onented recipes throughout dair\
month. Readers who send in a
at Lancaster Farming
stock, producers will be required
to buy commodity stock in order to
market their animals. The fee will
be $1 per hog and $5 per steer
marketed. Goss emphasized that
(Turn to Page A3B)
‘ Target ’ vs. ‘ Shotgun 9
target bonus commodities to those
markets where the U.S. has lost its
trading share as a result of unfair
trading practices of competitors.
“If we change the original
purpose of the program, which is to
recapture martlets lost because of
export subsidies, we will wreak
havoc with international farm
trade,” said AFB President Robert
Delano, *>>
OMano, who returned recently
from a trade mission to Australia,
New Zealand, Singapore and In
donesia, said our Pacific allies are
worried about the program
outlined by USDA last week.
“They are concerned that we
will dump our surpluses on world
markets, which would depress
world prices further and hurt those
recipe will receive a free gift, in
appreciation. Please address all
recipes to the Home Editor, in care
of Lane aster Farming
$7.50 per Year
(Turn to Page A 33)
Week 1;
Inputs
Labor D 2
Crops Dl2
Grain D2O
Housing A2O
Capital A 22
Knowledge B 2