JOYCE BUPP
York Co. Correspondent
FREDERICK, Md. Dairy
men division manager Boyd Cook
got both members’ amusement
and attention as he opened his
annual report to the Middle-
Atlantic membership gathered
October 12 at the Holiday Inn.
“As we look back on the last
year, it clearly has been both
excellent - and not so good,” said
Cook.
Pay prices to dairy producers
were the highest in history, top
ping $l6 a hundredweight in Janu
ary and February, with spring
prices $3 over support and $2 over
the prior year.
As raw milk prices escalated,
however, the cooperative’s pro
cessing plants were unable to pass
the increases through to the mark
etplace, resulting in losses. Excess
plant closings and the associated
costs were written off over a ten
month period ending in August
with the close of the co-op’s fiscal
year. Member pay prices are
expected to improve substantially
...madtibiast
Contact
INGRAM BARN
EQUIPMENT
BalMonla, PA
814-383-2798
sollenberger SILO
Ch.mbaraburg, PA
717-264-9588
Rovendale SUPPL Y
Wi(«ontown, PA
717-538-5521
FARMER BOY AG
Myaratown, PA
717-866-7565
Donald nissley
Willow *, PA
717-786-7654
PHIC BUILDERS
Pottatown, PA
215-323-4070
dfdil DAIRY SERVICE
RMfIS Sun, MO
. 301-658-6923
Members Hear Management Update
with that write-off period past.
Cook added.
He reviewed several producer
programs aimed at improving
quality and production manage
ment for the market needs. The
Middle Atlantic division member
ship earned an average of3o-ccnts
per hundred through the
processor-funded Call incentive
program, the highest average of
any of Dairymen. Inc.’s 11 divi
sions. September is expected to
average a similar payout to divi
sion members.
Rapidly escalating fuel costs
are impacting milk hauling and a
rate increase has been recom
mended, advised the division
manager. Hauling routes and pick
ups will be carefully scrutinized to
keep hauling, the division’s
largest marketing expense, as effi
cient as possible.
Cook predicted that component
pricing will become a part of the
Federal Order 4 payment program
within a year. Protein tests are to
be run monthly on the division’s
producers to aid in breeding selec
(S>
our nearest dealer.
DETWILER SILO
Nnrvllla, PA
717-776-6321
WHEELER INDUSTRIAL
SUPPLY
8a manat, PA
814-445-8917
FICKES SILO CO.
NmtvMla, PA
717-776-3129
DAG SILO REPAIR
Connaaut Laka, PA
814-683-5202
HOOVER EQUIPMENT
lyrona, PA
814-684-1777
LANCASTER SILO
Laneaatar, PA
717-299-3721
McMILLEN BROTHERS
Loyavilla, PA
717-789-3961
Tiberdome
P 0 Box 11 • Laka Mills. Wl 53551
1414) 648-8376
GNEGY SURGE
SERVICE
Waahbtgton, PA
412-222-0444
BRENNER DAIRY
EQUIPMENT
Spartanaburg, PA
814-654-7309
SOMMERSET BARN
EQUIPMENT
So manat, PA
814-445-5555
TOM DUNLAP
Jaraay Shora, PA
717-398-1391
MENDENHALL
DAIRY SUPPLY
■rookvina, PA
814-849-5539
DAWS FEED MILLS
Parkaala, PA
215-257-2966
tion decisions toward the future.
“We see increased emphasis by
consumer groups concerned about
the safety of our food supply,”
Cook reminded Dairymen mem
bers. He predicted that the drug
residue issue will continue and
need to be recognized by farmers,
their vets, and their cooperatives.
“Anti-biotechnology and animal
rights issues will also have an
impact. By working together, all
of us can work to minimize the
impact of these emotional press
generating issues."
Contrary to most years, the
Minnesota-Wisconsin price series
is dropping in the fall, due to
recent drops of over 30-cents per
pound for non-fat dry milk and
22-cents per pound for cheese.
Cheese buyers, said Cook, active
ly built inventory in the spring
flush, with those inventories now
depressing raw milk prices.
“It is drably important for dairy
farmers to work together to max
imize returns,” emphasized Cook,
of the unseasonable raw milk
price drops. “Our MACMMA
imm
125 King Court/Hollander Rd
New Holland, PA 17557 717/354-9611
VBNTHA
All Typtt
Belt Driv
Panel F'
ut:
Available In 5000 Thru 10,000 GVW
Other Modele 3000 To 24,000 GVW
Also Available
Lancaster Firming, Saturday, October 20,1990-A33
group will do everything possible
to help RCMA become a viable
marketing agency in the Federal
Order 2 (New York) market,
because weakness in that market
will have a negative impact on
MACMMA’s ability to bargain
for fair market prices in our mark
eting area.”
Dairymen regional sales mana
ger David Jones reviewed briefly
the adjustments made by Dairy
men, Inc., in restructuring and
streamling its operations.
“Those included a write-down
of unprofitable processing opera
tion, restricting division opera
tions, surplus property disposi
tion, establishing a surplus balanc
ing pool and developing a new
raw milk marketing plan,” Jones
explained. “These adjustments
and more were made so that
Dairymen could better compete in
a changing market environment
Production has begun to
rebound, and, along with a strong
inventory of powdered milk, sig
nificantly reduced amounts of
supplemental milk Dairymen
needed to move into the region to
supply its markets.
Jones predicted a continuance
of the trend toward fewer but lar
ger dairy farm. Likewise, process
ing plants have gone from 3,836 in
880 SERIES PORTABLE BALE
v * ELEVATOR
S & MOW
CONVEYOR
SYSTEM
The Zimmerman drive unit is unique. It can be locat
ed anywhere along the conveyor and has a com
pletely self-contained gear reducer and motor. This
eliminates the need for belts and chains.
* * “ ' " : \ * -
ModHt: • 06 • 08 • 10 • 12 TintHm»l43 Tandtm
1964 to approximately 600 in
1988.
“This has concentrated the
marketing power of processors in
this country into the hand of a few
large corporations, yet producers
have failed to counter balance this
strength with fewer and larger
cooperatives,** said the regional
manager.
Reviewing changes in the dairy
industry, Jones noted that
cooperatives geared toward hand
ling the surpluses of the 1960 s and
*7os were caught with excess
capacity in more recent years.
Those with little or no investment,
said Jones, found themselves in
“high cotton” in a deficit market
Even in a deficit market, he
warned, producers must organize
to counter the "enormous power”
of today’s large processors. He
compared the over-order pre
miums obtained through MACM
MA in Order 4 with the marketing
area of North and South Carolina,
where there is less cooperative
Strength.
“If dairy fanners are going to be
able to effectively bargain for the
highest prices for their milk, they
must have alternatives. Your pro
cessing and manufacturing facili
ties have given you those alterna
tives,” Jones concluded.
Contact Us
For
Literature
& Prices!
ZIMMERMAN RUGGED
HEAVY DUTY WAGON GEAR
■
•* •< -v>