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