Surplus, consolidation, prices, production control...
BY MARTHA J. GEHRINGER
LANCASTER Adjustments,
mergers, regionalization, fewer
cows jn fewer herds, a lower
market value for milk, but an
overall positive long run picture
were some of the predictions for
the future by a panel at the Lan
caster Dairy Day.
These panelist were addressing
the topic, “Our future, where are
we going and how do we adjust.”
The panel members were:
Robert Dever, assistant general
manager of Inter-State Milk
Producers; Stephen Graybeal, a
dairyman from Peach Bottom;
Gordon Hoover, a dairyman from
Gap; Robert Kindig, president of
Pennsylvania DHIA and a
dairyman from Conestoga; and
Daniel Martin, vice-president of
Inter-State and a dairyman from
Manheim.
Dever explained that we will be
seeing more consolidation on both
the processing and prodution ends.
He went on stating there would be
very strong processing and farm
related organizations in the future.
This will be a change, he con
tinued, as the industry is “heading
towards a limited number people
being involved in the business.”
Martin commented on that the
increasing number of non-farm
businesses becoming involved in
the dairy field is a positive move.
Dever supported this view ex
plaining, “large food oriented
organizations will be able to bring
new innovations in marketing to
the dairy industry.”
The power of the cooperatives
was another point which all
members of the panel agreed upon.
Gravbeal commented that
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“Cooperatives have a respon
sibility to return the assessment
through better markets and a
better price for the product.”
Hoover, while commenting that
he is relatively new to dairying,
feels that the cooperatives have
the power to make needed
changes. “NMPF, a collection of
cooperatives, was partially
responsible for the new dairy bill.”
This bill, Hoover feels is a good
one.
Cooperation among all farm
organizations, and working
together is a trend that is
developing, Dever noted. He
further explained that this
cooperation is a must for the
future, in developing farm policy
and other concerns for the far
mers.
Kindig noted this cooperation is
evident in DHIA on a national
level. They are working to reduce
certain costs, such as that of
developing software programs, by
spreading them out over a greater
area. He also noted that everything
is not compatible nationwide and
there will be regionalization.
Explaining that these difference
exist and the barriers are too
difficult to hurdle, Dever affirmed
the increase in regionalization. He
continued that it will always be the
northeast versus the south versus
the midwest versus the west.
The panel was asked by
moderator Glenn Shirk their
feelings on how price could be
enhanced.
Dever noted that “Until we can
get a better handle on the supply
and demand, price will not go up.”
Kindig explained that DHIA
expects the price of milk to drop
even further and has been en-
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couraging the producers to find
ways of reducing costs in order to
stay in business.
The consumers want cheap food,
Martin explained, and the only
way to achieve this is to have more
food than the market needs. The
government invented the price
support to achieve cheap food.
He continued that the support
price allows the production
overrun and provides a little profit
for the producer. While he agreed
that as long as milk was being
produced in surpluses, prices
would not be raised. He also
pointed out the support program
The dairy herd management panelists were, left, Dale Hershey, Tim Kissling, Glenn
Burkholder and Nelson Wenger, Glenn Shirk, extension agent, moderated this
discussion.
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worked well until the last few
years when the level rose too high.
Martin feels this program will
work well again once we get it back
in line.
Martin suggested a supply
management program is needed to
maintain this cheap food supply
and at reasonable profit for far
mers.
Graybeal however disagreed
because he feels that quotas
maintain the status quo and
resembles central planning. It is
his feeling that down the road this
will encounter disaster when the
markets and supplies change.
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Dever noted that at the meetings
he attended, he got the impression
that farmers do not want a quota
system.
This panel was the second of two
panel discussions on the agenda.
The morning’s panel focused on
the topic of herd management.
This panel included: Dale
Hershey, Manheim; Timothy
Kissling, Robesonia; Glenn
Burkholder, Washington Boro; and
Nelson Wenger, Manheim.
Kissling stated that the basis for
his feeding program are forages.
He feeds good forages to his heifers
and uses a total mixed ration for
his milking herd. He feeds no hay
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