Future Looks Good With Current Rates Of Milk
HARRISBURG Pennsylva
nia milk production figures sup
plied by the United States Depart
ment of Agriculture for July
showed a decrease in cow numbers
, from a year ago. Also, total pro
duction decreased by 10 million
pounds from the same period.
USDA figures show that in Pen
nsylvania in July 1986 there were
approximately 732,000 cows in
the state compared to 720,000 in
July of this year. The Milk Termi
nation Program may be having the
greatest affect on the decreasing
number of cows in the state.
The production decrease from
867 million pounds of July 1986 to
BS7 million pounds for July 1987
show a 1.2 percent decrease.
According to Jack Kirkland, dairy
marketing specialist at Penn State,
the decrease may be up very slight
ly due to the affect the hot weather
has been having on the cows.
Production per cow rose slightly
at .4 percent from 1185 pounds per
cow in July 1986 to 1190 pounds
per cow for July 1987. Milk pro
duction per cow for June 1987 was
at 1210 pounds per cow compared
to July 1986 which was at 1185.
However, the total production for
June 1987 was at 866 million
pounds, just 1 million pounds less
than the total production for July
1986 at 867 million pounds.
For the 21 major dairy states,
which account for approximately
84.5 percent of total national pro
duction, total milk production was
at 10.433 billion pounds of milk in
July 1987. That is a .3 percent
decrease from July 1986 which
was at 10.468 billion pounds of *
milk. According to Kirkland this is
the first time Pennsylvania has
been down more than the states
production.
In the 21 states the number of the decrease cost of dairy ration,
milk cows decreased by 2.7 per- The average cost per ton in the
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cent from this time last year while
milk production per cow rose by
2.5 percent. For July 1986 there
were approximately 9.032 billion
cows and in July 1987 there were
8.785 billion cows. Milk produc
tion per cow was at 1159 pounds
for July 1986 and in July 1987 it
was 1188 pounds.
According to Kirkland, the
future continues to look better for
farmers in 1987. All figures con
sidered costs are down. There is a
reduction in the number of milk
cows due to the buyout program
and also to the fanners who went
out of business for other reasons.
The situation looks good for the
farmers as prices continue to
improve throughout the year,
which he feels they will. In addi
tion, with butter and cheese prices
on the Chicago market above sup
port prices the outlook is very
favorable.
“Unless we see a tremendous
surge in production, prices will
hold up for farmers," said Kirk
land.
Also if production does not
increase in die first half of 1988,
the Minnesota and Wisconsin
prices may not go down.
The average price for milk cows
in Pennsylvania for July 1987
increased by 10.7 percent from
$B4O in July 1986 to this year’s
price of $930.
Presently in the northeastern
states which include Pennsylvania
and all the states to the north, the
measure of profitability, the milk
price to feed costratio, is at 1.61 up
from 3.9 percent from July 1986 at
1.55. This is above the estimated
breakeven point of 1.33 denoting
the relative profitability of the
dairy industry.
Part of ratio increase is due to
northeast last year was approxi
mately $l6O. This year a decrease
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