A36-Lancaster Farming, Saturday, September 23,1989 Price Of Milk To Processors Increases September 1 STRONGSVILLE, OH A traditional supply/demand scenar io with some unexpected swings will raise the price of milk to milk processors on September 1, according to the general manager of the regional dairy cooperative Milk Marketing Inc. (MMI).. ‘The milk supply is decreasing and demand for dairy products is increasing, therefore prices are responding,” said MMI General Manager Gordon Riehl. Unexpected for economic con ditions brought about by the weather, continued consumer demand and fewer dairy farmers are the elements of the price hike. “In order for dairy producers to survive the lingering economic effects of last summer’s drought and the production of poor quality feeds because of this spring’s wet weather, farmers need to get more money for their milk. More money to farmers will keep more farmers in business, and that means area milk processors can be more read ily assured of a milk supply to meet consumer needs,” he said. Prices to MMl’s milk processor customers will increase between 58 to 73 cents for each one hundred pounds of milk purchased I 1 All-Plant LIQUID PLANT FOOD 9-18-9 PLUS OTHERS! • Contains 100% white ortho phosphoric \ acid. Made in USA. % • Non-corrosive. Won’t settle. • Top quality. Excellent service. • Newest equipment. • Financially sound... and growing! Big Demand Requires More Distributors! □ I sell to farmers. How do I become your distributor? □ I'm a farmer. What’s the price? Where do I get it? CALL or SEND FOR FACTS: Phone: 814-364-1349 ALL PLANT LIQUID PLAMT FOOD, INC. 821 State Rd. 511 N., RFD 3, Ashland. Ohio 44805 depending upon the area where the processors are located. Of this amount, 43 cents is a national milk price increase based upon the supply/demand picture across the country. Additional price hikes are expected in subsequent months. “Pay prices to dairy farmers in this area were higher eight years ago than they are today,” said Riehl, indicating that the price of milk peaked in December of 1981. Last year, pay prices to producers hit a ten-year low. Since that time the much publicized tough eco nomic conditions on the farm have forced many producers into retire ment or selling their operations. Recent weather conditions have worsened the picture. Financially hurt by last summer’s drought, •m %hf * * ’’W "W **2!!i I Dist. | Mhey equipment COMPANY, INC. '/ Daitgnart af QaalHy SyttiMi far Paaltry, Swina and Grain HamNliis farmers are reeling from this spring’s heavy rains which wreaked further havoc on many farming operations. “Milk production will remain a problem as long as feed quality remains so low. This spring’s rains, which prevented fanners from harvesting hay and silage during their peak period, means these crops now will not contain the nutritional value that cows need to produce sufficient quanti ties of milk,” Riehl explained. “In order not to jeopardize the milk supplies, now and in the future, farmers need to know that they can afford to purchase more nutritional feed from other areas to maintain their animals. If far mers’ pay prices do not stay in line with costs of production, the sup “VINYL ♦ FENCING” 13 Styles To Choose From! “Vinyl Horse Fence” QUALITY FENCING & SUPPLY 622 N. Shirk Road New Holland, PA 17557 717-354-9760 Mfg. & Dist. “P.S. d Our Large Display In Showroom” For More Information Contact: Abo Available At: HENRY B. HOOVER AGWAY, INC. 1731 Main St., Ephrata, PA 717-733-6593 SYCAMORE INO. PARK 255 PLANE TREE DRIVE LANCASTER, PA 17603 (717)393-5807 plies of milk available to this area will obviously diminish. So will the number of dairy farmers,” said Riehl. Nationwide the price of milk is climbing because the supply of milk is dwindling. Government statistics indicate that production across the country is down more than two percent from a year ago. In MMTs eight state region production has decreased by more than 10 percent. At a time when production is down nationwide, the consumer demand for dairy products is growing, according to USD'A sta tistics. Fluid milk sales, or bottled milk, are currently strong, up almost I.S percent from the beginnning of the year. Cheese sales have climbed nearly eight • TOP MANUFACTURER • PROVEN DESIGN • PRODUCT SUPPORT • STANDARD FEATU MANY MODELS AVAILABLE FOR ANY APPLICATION Route 30 West at the Centerville Exit. percent. In fact, almost every category of sales for dairy pro ducts is up, except butter. “Still,” Riehl commented, “dairy products remain a consum er bargain. The Consumer Price Index shows that even though dairy product prices have increased 14 percent since 1982, overall the basic food item cate gory has risen 25 percent during that same period.” MMI is a 7,000 member dairy farmer owned cooperative encom passing an eight state midwestem area including Ohio, Indiana, Pennsylvania, Michigan, New York, Kentucky, Maryland and West Virginia. Last year MMI marketed more than 4.1 billion pounds or 475 million gallons of milk. “Vinyl Picket Fence” RES I % p* * '* No More Painting Or Rotting AIN YERS
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