Aia-UncMtef Farming, Saturday. Juna 6, 1992
HARRISBURG (Dauphin
Co.) The Pennsylvania Milk
Marketing Board is scheduled to
meet June 18 and is expected to
decide the fate of its over-order
fluid milk premium.
There is no indication as to how
it will decide.
For a couple of years, Pennsyl
vania dairy farmers have received
a $1.05 over-federal order pre
mium on fluid milk to help protect
the state’s dairy industry which has
suffered because of repeated
droughts and low milk prices.
Even though supply and
demand for milk is reportedly at a
close balance, the price has
dropped here in response to pro
duction of milk in other parts of the
United States which exceeds the
demand there.
The Pennsylvania Milk Market
ing Board is an agency which pro
tects the dairy industry from cor
ruption and dairy farmers from
unethical practices. It also has the
ability to set minimum retail
prices, and a minimum over-order
premium to farmers that can guar
antee a reasonable profit through-
Agricultural Producers
Today’s ag-markets are extremely volatile and
likely will remain that way for the balance of
this marketing year.
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out the fluid milk sales industry,
while retaining a low cost to the
consumer.
On June 30 the entire premium
of $1.05 and the additional 25
cents (which was tacked on late
last year because of the drought) is
set to terminate, unless the board
decides to extend the premium.
Testimony on the over-order
premium was taken during a public
hearing last week.
Because of objections raised by
an attorney who has, over the
years, unsuccessfully challanged
the legality of the board, written
testimony was not-allowed into
record if the author of the written
testimony was not physically
present.
While most dairy organization
representatives testified that some
over-order premium was needed,
representatives of Atlantic Dairy
Cooperative testified that no over
order premium was needed.
ADC markets milk in other
states and has to pay its members
the over-order price and still com
pete with milk supplies which
don’t carry the premium.
PMMB To Meet,
However, Ohio is now consider
ing legislation which would enable
its agriculture secretary to imple
ment minimum prices, using Pen
nsylvania’s program as a leader.
The Pennsylvania Slate Grange
representatives testified that the
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Decide
2S-cent drought premium is no
longer needed, while the Pennsyl
vania Farmers Association testi
fied that the premium is still
needed until Pennsylvania dairy
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crops off of their own land to feed
their cattle.
A number of milk producers
have been purchasing a large por
tion of their cattle feed for months
because of crop failures last year.
FRT.