MESHOPPEN (Wyoming Co.)
Any pricing system that sets
the same price to dairy farmers in
1993 as it did in 1979 certainly
needs to be replaced, claims
Arden Tewksbury Mgr. of the
Progressive Agriculture Organiza
tion (Pro Ag).
Speaking at a meeting of dairy
farmers in Wyalusing, Tewksbury
blasted the present pricing formu
la that establishes prices for area
dairy farmers.
Tewksbury said the Minnesola-
Wisconsin (M & W) Grade B
manufactured price that deter
mines the majority of milk prices
is antiquated, out-dated, unreli
able, unrealistic, and easily
manipulated.
The Pro Ag Manager said the M
& W price sets the price on milk
used for manufactured purposes in
the federal milk marketing orders
throughout the United States and
the formula eventually sets the
pay price to dairy farmers.
Milk prices paid to area dairy
farmers during the Spring of 1993
could go down to $10.85 per cwt,
according to Tewksbury, and this
is where the price was in “1979”.
Tewksbury asked the crowd,
“Can you imagine any other seg
ment of our economy operating on
1979’s prices?” Tewksbury was
also critical of some farm organi
zations and dairy co-operatives
that arc not addressing the serious
pricing problems facing dairy
farmers
Tewksbury called on dairy far
mers to “leapfrog” over their orga
nizations (that are in a limbo on
dairy farmers prices), and support
the efforts of Pro Ag to establish a
new pricing formula based on the
average cost of producing milk.
At a National Milk Hearing on
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Virginia, Pro Ag, N.F.O. (New
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National Dairy Campaign people
testified in favor of the new pric
ing formula.
According to U.S.D.A. the
average cost of producing milk in
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the United States for 1990 was
$14.98 per cwt., but in the North
east the cost was $16.46 per cwt.
Tewksbury said these figures indi
cate that dairy farmers are being
paid about $5 ($.50 per gallon) per
cwt. under their cost of
production.
A survey conducted by Pro Ag
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indicates supermarkets in north
eastern Pennsylvania are currently
selling whole milk for $2.23 per
gallon, but Tewksbury claims in
February of 1990 the same stores
were selling milk at $2.55 per gal
lon. This means milk currently
being purchased by consumers is
$.32 a gallon cheaper than three
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Lancaster Ffermho, Saturday, March 13 1993113
years ago in 1990. Pro Ag officials
claim all of ihe 32 cents per gallon
has come from a lower farm price.
Pro Ag wants all farmers, agri
cultural business people, and con
sumers to support their efforts. Pro
Ag officials can be reached at
(717) 833-5776 or (717)
924-3518.
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