AB*E»tesWr wrrntrtfl, •stefrtgy, \j*miiV^; , t 995
ADC Reports Strong
Position For Members
(Continued from Pag* A 1)
eventually benefit the U.S. dairy
producer.
He said that an agreement with
Canada over dairy trade, within the
North American Free Trade
Agreement (NAFTA), still hasn’t
been worked out, and that provides
uncertainty in the industry.
He said that on the other hand,
although the Minnesota-Wisconin
Price dropped 80 cents in the last
two months, cheese prices moving
up slightly recently and that can
mean good news. Akers said that
roughly a 1 cent change in cheese
price equates to a 10 cent change in
the price of a hundredweight of
milk.
Also of concern to the coopera
tive has been an increase in the cost
of hauling milk. He said hauling in
Federal Order 4 will be going up
slightly. “It was something we had
to do,” he said, “we’re aware of the
significance of the transportation
cost.”
In other news, Akers said that
the cooperative “expanded the
amount of scholarships available.”
He said there is one $5OO scholar
ship for the district for the coming
fall semester, with details to be
announced.
The 1989 patronage refund
check was to be mailed out, and in
April, members wilt get another
check representing a return of 20
percent of profits for the past fiscal
year, with the remainder going into
the cooperatives 5-year revolving
fund.
Akers also announced that the
ADC board of directors has
approved a policy of paying for
part of the cost of attending the
Dairy MAP program.
The Dairy MAP
program is an
Extension-sponsored
program to help dairy
producers better cope
with management and
profitability considera
tions on the operations.
The program has been
fairly well reported in
various publications and
by the extension ser
vice, along with Penn
State University.
However, for more
information, contact a
local extension office.
For more information
on the ADC cost
sharing program, con
tact a field
representative.
Also speaking at the
meeting was Robert
Dever, CEO for ADC.
Dever, who started
working for ADC in
1970, and is marking his
25th year with the
cooperative in May,
said that members
should investigate the
amount of federal
assessment refund they
are owed, depending on
the amount of produc
tion they had last year.
Members are to get
summaries of 1994 pro
duction from the
cooperative, which they
can then take to the for
mer USDA ASCS
offices, now called the
USDA Farm Service
Agency, for determina
tion and processing."
Overall, Dever said that milk
production in the entire United
States is increasing in large sec
tions. He said the upper Mid West
seemed to have recovered signific
antly from weather-related disas
ters the past several years; western
Texas, New Mexico and Arizona
have increased milk production
significantly; and the Northeast
production has increased also, but
not to the extent that is going on
elsewhere.
The increase in production,
without an increase in exporting or
an effective price support program
will result in lower prices, he said.
He said that over the past 25
years, except for two periods, the
trend has been for lower prices and
more milk.
For those wondering about the
milk production in California,
because of the severe flooding on
the West Coast, he said that a lack
of water will probably be the only
thing to slow down California’s
dairy production growth, not
excessive rain from occasional
storms.
Dever said that the outlook for
milk price is right now just “an out
and-out guess,” but he expects a
decrease in the range of 30 cents to
as much as 70 cents per cwt.
On the brighter side, he said the
current federal administration is
continuing the DEIP program for
at least the first six months of this
year, and how long after that,
depends on the political situation.
He briefly discussed the export
of fluid and solid dairy products to
Mexico as a benefit for the U.S. for
the long term, although that coun
try’s recent bout with stabilizing
the peso, and providing a sense of
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security to outside investors is
something that will continue its
uncertainty.
Dever said. “This is a cyclical
type of business, prices will go up
and down. But in my 25 years,
those good managers are still pro
ducing more and more.”
He said the bottom line is that he
looks to the 95 milk price to go
down and to start to increase late in
the year or early 1996.
The recent 10-year contract with
Hershey Foods Corp. represents an
increase in ADC’s membership.
Out of the 720 independent pro
ducers previously shipping to Her
shey, 480 have joined ADC.
According to Dever, a relatively
few buyers of milk represent a
great portion of the market for the
cooperative. The Hershey contract
represents about 15 percent of the
total ADC production over the
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From the left, Herbert Grayblll holds a plaque he received for his family farm's 50th
year as a cooperator In the Atlantic Dairy Cooperative, while C. Nevin Hershey, and
Ray Ranck hold plaques commemorating their 25 years membership.
trlct . qu. ;y pi
Robert Zander for J. Carl and Doris Zander.
next 10 years. The contract gives will dividends.” he said.
adding. “It did represent a shock to
y h k» Said ' 3 significant number of farmers.”
‘I beleive the Hershey contract (turn to Pag. A 35)
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