HARRISBURG - April
production figures showed a net
decrease in cow numbers from a
year ago, but total production
increased over 39 million pounds
from the same period. "
USDA figures show that in
Pennsylvania in April 1985 ’there
were approximately 738,000 cows
in the state compared to 730,000
cows this year. This decrease is an
early sign of the effectiveness the
of the Milk Termination Program,
according to Jack Kirkland, dairy
marketing specialist at Penn
State.
The production increase from
793 million pounds in April 1985 to
832 million pounds in April 1986 is
the result of increases in individual
production records. Production
per cow rose from 1,075 pounds per
cow to 1,140 pounds.
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U.S. Milk Production Climbs in April
However, the total production is
down from the March figure of 840
million pounds. This decrease is
more evidence of the effectiveness
oftheMTP.
Total milk production in the 21
major dairy states, which produce
84.5 percent of the total production,
was 12.7 billion pounds of milk.
Trends found in Pennsylvania,
production per cow up and total
production up, were similar
throughout the United States.
Despite the seemingly bleak
outlook at this point, Kirkland
pointed out that it is necessary to
look at the whole picture to keep
things in perspective. “The bright
side is that costs are also drop
ping,” Kirkland said.
The three main grouping for
costs are feed, interest rates, and
fuel, which includes fertilizer
THE KEY TO QUAIITY IS GSI
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costs. Costs continue to drop faster
than the milk price, Kirkland
stated. With this in mind, he
ventured that 1986 could turn out to
be a better year than 1985.
Replacement cow costs are also
lower this year, averaging $865
compared to $950 to last year. He
noted that this is not good for those
selling, yet it is the trend for all
dairy industry prices to be
decreasing.
Prices for fluid milk, at the
farmer level prior to any
assessments, were also down from
one year ago. “This is reflective of
more milk, more total volume
produced. The depressed farmer
prices show a smaller percentage
of milk that receives the higher
price for fluid milk,” Kirkland
noted. .
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farmers were receiving a blend
price of $12.19 per hundredweight
compared to $11.31 this year. With
the deduction of the 67 cent
assessment, the actual price that
the farmer receives is $10.64.
Federal Order 4 price per
hundredweight this month is $12.23
prior to the reduction of 67 cents
for the assessment. In April 1985
this price was $13.11.
The western quarter of the state
and the eastern part of Ohio,
Federal Order 36, received $ll.BB
in April this year and $12.90 last
year.
Presently m the northeastern
states, which include Penn
sylvania and all states to the north,
the measure of profitability or
milk price—feed ratio is 1.46. The
breakeven point is 1 3 Kirkland
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stated. With the assessment of 67
cents figured into the ratio, the
level is still above the 1.3 level,
Kirkland noted, citing this as
further evidence that the dairy
industry is still relatively
profitable.
Many farmers are putting more
cows on to make more milH- This
will ultimately result in a lower net
price for the milk, Kirkland ex
plained, and further reduction in
the support price.
“The distribution of profitability
is all over, it boils down to the
management,” Kirkland stated.
The exact number of farmers who
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