A24-UMMt«r Faming,-Saturday,-May 23,1917 UNIVERSITY PARK - Although Pennsylvania is one of the few states to set minimum prices for its milk at all levels, the consumer cost here is often lower than average prices throughout the country, according to a Penn State agricultural economist. “Overall, I’d give Pennsylvania an A-minus in setting milk prices,” said Dr. Jack Kirkland. Especially when consumers buy half-gallons and quarts of the liquid beverage, he said. The Penn State assistant professor compared four urban areas in Pennsylvania to cities throughout the nation. He found that in March 1987, a gallon of whole milk could cost as little as $1.75, in Salem, Ore. Or it could go for as much as $2.53 anywhere in Montana. Pennsylvania’s retail milk prices are, in some cases, lower WEATHER VANE with every building purchased Pa. Milk Priced Competitively With Other States than even the Midwest dairy region, where the cost of farmer’s milk is lowest in the country. When you buy milk in Philadelphia, Harrisburg, Altoona/Johnstown or Pittsburgh, you’re buying it for less than the average price in March, $2.06. Only Altoona broke the $2 barrier, selling milk for $2.04. The other three cities featured milk for anywhere from $1.93 to $1.96. “In states where there is no control of milk prices, retailers may have lower prices on the high volume quantities and products, like a gallon of whole milk. “But they make up the dif ference on the smaller quantities, like half-gallons .and quarts,” Kirkland said. “Pennsylvania is definitely the place to buy milk in quarts.” For a quart of whole milk, a consumer can’t get it cheaper than CCtiifiiilMcrgferfl ftiToiffl Call or wrlla today to arranga to aaa and haar mora raaaona why you ahould own a Morton Building Ph 717/624-3331 336 S York Rd Gattyabur|. PA 17325 Rd 110. Bon 76 Mudvillc. PA 16335 State CoUaga. Boi 361 Cantra Hal). PA 16828 Boa 126 Phillipaburg, NJ 08865 1916 Induatrial Oriva Culpapar.VA 22701 P 0 Boi 167 Harrington, DE 19952 ORTON BUILDINGS Ph 814/336-5063 Ph 814/364-9500 Ph 201/454-7900 Ph 703/825-3633 Ph 302/398-8100 in Harrisburg, he found. A quart can cost as much as 79 cents, in Asheville, N.C., but throughout Pennsylvania, it’s not more than 56 cents, Kirkland said. The same is true for a quart of 2 percent milk, he said. For that product, Altoona/Johnstown is just about cheapest in the country. The rest of 1967 should show an even better deal here, the agricultural economist predicts. Kirkland believes that Penn sylvania’s good rating in the cost of milk products vindicates the state’s minimum resale-price control program. i “it adds stability to the industry by eliminating price wars and other forms of destructive com petition,” Kirkland said. Most retailers do sell their products at the minimum price set, or Just slightly above, due to the com petition. WESTFALIANSSm, HIGH TECH DAIRYING » jMm 810-MILKER H multiplies mm MkMAflSAjk "~j i Westfalia Milking Equipment And Computer Sales Centers SkiMMr A Walton Dairy Samlet Haywood Skinner Cary Walton 717-352-7606 ;hranville Farw Construction A Equipment Robert L. Jan nay 215-593-2365 NEW WILMINGTON Chock Moasa Dairy Equipmant 412-533-3077 MIFFLINBURG Wehr's Dairy Equipmant Mark Wahr 717-966-1396 MT. BETHEI K.C. Dairy Sarvice Karin Cerrell 717-897-5141 “But one major disadvantage is that costs of individual dealers vary from the average because of differences in volumes. The result is that some firms are encouraged to remain in business though earning quite low and possibly negative returns while others stand to reap substantial benefits,” he said. Kirkland said his main argument with milk price-control is that in Pennsylvania, the prices are set to guarantee that milk processors receive 2.5 to 3.5 per cent profit. “I maintain that the purpose of regulating price is not to insure profit, but to maintain orderly market conditions. The price LEOLA Fishar A Thompson, Inc. AmasFithar Rick Tkampaan 717-656-3307 SPARTANSBURG Brannar Dairy Equipment Albert Brannar 814-654-7309 SOUTHWESTERN PA PA Dairy Automation Service, Inc. Mike Wright 412-538-FARM TROY Dairyland Sales A Service Jim Kelley 717-297-4128 WILI tBURi .IAMi Longenecker Implement Dale Longenecker 814-793-3731 should be a floor that keeps retailers from charging destructively low prices,” he said. The market strategy for processing plants to sell below their cost is to drive firms who are unable to sell at those prices out of business, Kirkland said. “The remaining firm(s) captures more of the market. With little or no competition, this sometimes results in them being able to charge very high prices. Regulation is designed to prevent this from happening.” All in all, he said, the bottom line is that milk drinkers are still getting a very good buy when they shop for the beverage here. GIGANTIC SELECTION IN Lancaster Farming's CLASSIFIEDS • Healthier udders • Reduced milking times • Superior milking out • High milk yield • Reduced cell count • Longer productive life of the cow • Increased profit ability in the shed A New Way To Better Milking Many New Installations For You To Visit- Call Year l¥esffalia Saha Engineer WESTFALIA ■ORT Williams Farm Systems Dave Williams 717-398-0829 HAMBURG Skartlesvilte Farm Service Dale Wenger 215-488-1025 ;wmi Soga's Dairy Service 717-465-7506 OXFORD WAI Dairy Sales BUlfiuhl 717-529-2569 HAGERSTOWN. MD TH-State Farm Automation 301-790-3698 WESTFAUA SALES ENCINI Robert E. Timor ~ Chuck Zimmerman sivmuL iYKESVII MO Dairyman Inc. Mid-Atlantic Division William Slauffor 301-795-2727 301-781-7020 SPECIAL WESIFJU.U DEALERS FOR TIC AMSH DAIRYMAN PARADISE Lloyd Ranch 717-687-6361 REBERSBURG Tim’s Mom) Service Tim Stoltifus BUCKET! PAIL SYSTEMS 717-677-9301 717-334-6814
Significant historical Pennsylvania newspapers