MILK
Wm CHECK
1 THOMAS JURCHAK
M $ Dairy Specialist
Jl ? " Lackawanna County
SCRANTON (Lackawanna Co.) Dairy product prices last month
squeezed another 25-cent increase in the Minnesota-Wisconsin price,
raising it to $12.29 for October.
That’s a total of $1.04 worth of increases since June, but 17 cents less
than the October price last year.
This is the second year with two peaks in the M-W with a high of
$12.99 in April, and now with $12.29 in October.
Even though the M-W is now 17 cents less than last year, the average
M-W, since the first of the year, is $12.08, or 45 cents better than 1993.
You’ve had higher springtime prices this year, and this increase in the
October M-W will produce higher farm prices for October and November
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milk, in most markets. Higher prices may extend into December, in areas
whcfe Class Ilia use is low.
End Of The Line
For the M-W price, this will be the last increase of the year.
The nonfat, dry-milk {nice is steady to firm, mainly on the strength of
more Dairy Export Incentive Program (DEIP) sales to Mexico and Alger
ia, and butter demand is good for this time of the year.
Cheese prices finally took the hit that was anticipated from increasing
milk production. Block cheese prices dropped S cents on the National
Cheese Exchange in the last two weeks, and were at $1.27 on Nov. 11.
Barrel prices have been steady at $1.29 for eight weeks, but gave up a
cent Nov. 11. Right now, barrel cheese is valued at a half-cent more than
blocks of cheese. This won’t last long. It only means there are more
adjustments to come this week, and possibly all the way
through November.
All of this says that the 25-ccnt increase in the October M-W will be the
last increase for the year, and that change in cheese prices so far can trans
late into a 50-cent drop in the November M-W price.
Increased commercial disappearance, as well as DEP-accelerated
sales of butter and dry milk powder can be expected to soften the drop in
cheese price, however not enough to counter the increases in milk produc
tion already on the rise in all areas. Even the South East has increased its
milk production so that there is little need for the area to import much
milk.
While the current M-W price is still $2.29 above the support price of
$lO for manufacturing grade milk, and the Commodity Credit Corpora
tion (CCC) is not buying dairy products under the price-support program,
government purchases ate still a significant portion of dairy sales.
For instance, last year the CCC bought S6.S million pounds of cheese at
market prices for the school lunch program. Also, nearly 157,000 metric
tons of butter and powder were purchased through the DEO* program for
export to countries that normally do not buy U.S. dairy products.
It’s important to know, as the new Congress begins to fashion a new
farm bill, that while funds may be less for price supports, there arc other
programs just as important for milk producers.
Government Program
Lancaster Farming, Saturday, November 19,1994-A2l
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Lancaster DHIA
To Meet
MANHEIM (Lancsater
Co.) Lancaster Dairy Herd
Improvement Association is to
hold its annual awards banquet
11:30 a.m., Dec. 6, at the Good &
Plenty Restaurant in Smoketown.
In addition to announcing pro
duction award winners, Steve Her
shey, vice president, is to show
slides on the development of a new
testing laboratory.
Tickets may be purchased from
any DHI technician or by calling
the office at (717) 665-5960. Lan
caster DHIA provides service to
Lancaster and surrounding
counties.