U&MWm "FltfWng; 'JOHi a. IMT ' PMMB Considers Request To Lower Producer Premium from Pag* Ai) was mixed. priced milk is being sold by out-of- rniums in surrounding states are 'duct, and both Testifying for the reduction in state dealers for Class I use to Pen- based on supply and demand con- J that the ore ‘andards of premium were representatives nsylvania ictailcrs because it is mium attracts the marketing^ lhal from Milk Marketing Inc. cheaper. cents, ana tneretore, rennsyivam ... tmn nmanrm (MMI) which is currently the In other words, while .the a*s PMMB premium should follow pressuring the maStet for third largest milk marketing PMMB has been acting to help Sll £ Pennsylvania producers, cooperative m the nation in terms boost the income of Pennsylvam- « also warned me premium as release the Granite of members, fourth in terms of a’s dairy producers to stay the being partly responsible for con- „ . 33000 members milk shipped-and member declme of the family dairy farm, “ h ‘ h ““£,* JiA across the state ...."though it does cooperative Atlantic Dairy retailers have shown no loyalty production, wmen coupiea witn nnt detail u.. num her of member- Cooperative (ADC). and have sold out local producers flat retail sales has oversupplied H rm ADC is also a member of the by buying large volumes of out-of- the Class l market to the.point that Those testifvinir in support of MACMMA. which brought the stare milk to scllasdrinking milk, aSS'fflkv'd maintaining to premiui?lt 80 petition. Schad testified that decreasing ““8 ma “® at \ ass m *® vel ; cents renresentatives from MACMMA is a marketing the over-order premium would C J as * “ •b® j Wes *'P™ e< | Pennsylvania Farm Bureau agency created in 1993 in the com- actually help Pennsylvania dairy- level of milk use, and when that Ren Sheila Miller R-Berks mon interest of several dairy far- men retake their local markets P ortlon °* total milk * al ® s Countv and state Rep. Sandra mer cooperatives to collect and because contracts for Class I milk increases, the total value of the whose constituency district distribute over-order premiums sales hinge on very small differ- include aU of Wyoming aid Sulli paid through Federal Order 4. cnees in price orofiteble van. and part of Susquehanna which mcludes some of the 80 cent According to Schad, Recently, Pt™«aore. PMMB Class I over-premium paid Class I sales in northeastern Pen- Rcp.s’ MiMer and Major co °Un.h . nsylvania were lost by an m-state iSoTdtorto signed a letter to Leon Wilkinson. Other members of MACMMA dairy to a processor in proauccre nave ocen toiu uiai me ®. , . are Atlantic Processing Inc the Massachusetts future belongs to forms with more chairman of the now two-person mc tianuc woccssing inc., tnc Massachusetts. 500-cow herds and many PMMB (nominations for a third Coastal Division of Mid- Formerly, the dairy business 3W ™ W ncrus, anu maiy . „, pnf | u American Dairymen, the Mary- (in general) was characterized by air Y publications have been land and Virginia MiUc Producers small farms selling milk and g expanS,onS as for ifi letter . they state, "Today Cooperative and ihe Eastem Reg- related dairy products in local su ™ } - d uUiinatc i y you are hearing testimony from ion of Milk Marketing !nc. markets. Currently, the structure of SbchLfofs42sPcn- farmers and related organizations DennaSclrad manager of regu- the dairy business is one where who will provide more details on fotory affajrs for ADC, testifiedon forge regional food firms carry on the cost of milk production than behalfofthe cooperative and other dairy products within a line of memocra ortne cooperatives on as leaislators can share with members of MACMMA. except other food products. wh °se behalf he testified. leglslators * 0311 sharc wlUl the Eastern Region of Milk Mark- _ “The marketing environment of 50^^^n “However, as members of the becalledfora ** PMMB over-order Class I pre- and highly competitive." he said. Robert Gable, a dairy farmer (Turn u> P.g* AST) mium decrease to SO cents per “Milk is viewed as a commodity hundredweight. by retailers and sales contracts are To the point, justification was very price sensitive, based on the fact that the premium “As the example illustrates, creates a better paying market for dairy farmers and processors in Class I milk in Pennsylvania than Pennsylvania face competition for surrounding states. in-state Class I sales from long According to Schad, the result distances.” of this has been out-of-state, un- Schad said that because pre- (Continued from Pago A 1) quality of the product, and both parties share in the standards of living that result from that commerce. Further, this position also depends on the belief that it is desirable to have local farms and that fresh drinking milk and other easily perishable milk fluids are best produced locally, and that loc al producers are best to supply loc al demand. Arguments against the premium are that it interferes with interstate trade (some claim it violates feder al interstate trade law), and hurts those attempting to sell milk at a lower price, and/oqbuy it at a lower price. The theme here is that it goes against the nature of free market capitalism. It also depends on a belief that depending on local Pennsylva nians to produce local drinking milk is obsolete. ' Of course, there are other twists and other viewpoints. As an agency, the PMMB con siders proposals, such as this 40-cent reduction request, when petitioned by a sufficient number of producers or interests in the dairy industry. While the MACMMA initially petitioned for the reduction in pre mium, it was joined in the petition by the Pennsylvania Milk Dealers Association. During the May 25 hearing, held in the cafeteria of the slate Farm Show Complex in Harrisburg, sev eral organizations had representa tives testify on the issue. Support for the two groups’ proposal was about split, and that INVENTORY REDUCTION ALL PARTS AND WHOLE GOODS IN STOCK PATZ I.H. RISSLER MIXERS SCHAEFER FANS ZIMMERMAN FANS LAPP WATERERS HOULE HERITAGE FENCE ALL CASH & CARRY SALES ENDS JUNE 30, 1995 Cedar Cresi Equipment SALE FIBERDOME SHOW-EASE STALL NOLAND SYSTEMS UEBLER CARTS STOC-COOL SYSTEMS VALU DUMPING WATERER Two Convenient Locations 608 Evergreen Rd. RD 2 BOX 271 Lo^"°"’™ 1 ;™ 42 East Earl, Pa 17519 (717)270-6600 (717)354-0584 Land Improvement & Excavation Contractors 151 Meekvllle Road, Myarstown, PA 17067 717-933-8853 or 933-4062
Significant historical Pennsylvania newspapers