PMMB Postpones Premium Reduction 90
VERNON ACHENBACH, JR.
Lancaster Faming Staff
HARRISBURG (Dauphin
Co.) The Pennsylvania Milk
Marketing Board (PMMB) has
recently approved a 90-day delay
in reducing its mandatory over
order Class I premium by 10 cents.
The PMMB is the state’s dairy
industry regulatory agency and is
charged primarily with an account
ing mission to ensure that dairy
men are being fairly compensated
for milk delivered to processors,
that consumers are not being
cheated, and that commercial, non
farm retailers do not undersell
dairy products to entice other
business.
The over-order premium on
Class I milk (fluid milk for drink
ing, etc.) was instituted in 1988 as
a means of directly helping Pen
nsylvania milk producers realize a
better income, in light of localized
natural disaster.
Droughts were the initial reason
the premium was instituted. Other
economic factors have also played
a role in maintaining the over
order premium or increasing it
Earlier this year, upon petition
by milk processors and dairy
cooperatives to reduce the pre
mium. the PMMB held heatings
on the matter and decided on a gra
dual reduction of premium.
The reason given for the desire
to reduce the premium was that it
forced processors to pay more fen
Pennsylvania-produced Class I
milk than for drinking milk pur
chased from producers in sur
rounding slates.
This difference in price repor
tedly encouraged volume milk
buyers to purchase out-of-state
milk for drinking and to sell instate
milk for Class n uses and at those
lower prices. Class II use carries
no over-order premium.
This buyer/processor switch
from using locally produced milk
for fluid products has driven the
call to reduce die premium to the
point where it would be mote
advantageous for processors to
purchase locally produced milk for
Class I uses, instead of paying to
have it hauled into the state.
Also, for members of coopera
tives with territory crossing state
lines, it created a situation where
by it could possibly cause internal
conflicts.
Some disagreed with the move,
but die majority of arguement sup
ported reducing the premium.
Effective August 1, the pre
mium was reduced from 80 cents
per hundred pounds (cwt) of milk
to 70 cents. On Sept. 1 it was furth
er reduced by a dime to 60 cents
per cwt
A third 10-cent reduction had
been scheduled to lake effect Oct
1, but as a result of a late Septem
ber meeting, following closely
after a hearing, the PMMB
Emu Incubating, Hatching
MILLVILLE (Columbia
Co.) —The Pennsylvania Emu
Farmers’ Association (PEFA) will
be hosting an Incubating and
Hatching Seminar on Saturday,
Nov. 4 at the Centre County Vo-
Tech School in Pleasant Gap,
from 1 p.m. to 6 p.m.
Guest speaker will be Ardell
Nelson, owner and CEO of
Canyon Global Corp.
Nelson brings with him 12
years of expertise in the emu
industry. He has hatched thou-
fic-nr fawdnß Saturday, October 28.1M6-AH
approved a 90-day delay in the last
10-cent reduction.
According to estimates, it could
mean $437,000 extra statewide in
dairy producer income.
Because of this year’s drought
and its effects, particularly in thin
and northern soils with low water
retention qualities, dairymen have
suffered from increased costs of
production, and reductions in pro
duction per cow. This means less
cash available to buy and bring
more supplemental feed to the
sands of chicks over the years and
will be sharing many new and
exciting industry developments on
the horizon, which will be heard
for the first time at this important
seminar.
A native of Pennsylvania and a
graduate of Penn State, Ardell has
one of the largest emu breeding
operations in the U.S. His corpo
ration is a completely integrated
entity involved with emu ranch
ing, rendering and processing of
emu oil, tanning emu hides, emu
Lease financing for the farm
and rural marketplace
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farm.
A representative from Pennsyl
vania Farm Bureau which had
opposed any premium reduction,
because that would hurt its in-state
dairy producer members, unlike a
multi-state cooperative
testified recently that production
costs were increasing.
Also, testimony on behalf of the
Pennsylvania State Grange also
indicated! desire to postone the
premium reduction until the end of
December, and then review the
situation.
Seminar Set
oil based skin care and pharma
ceutical development, manufac
ture of emu oil products, continu
ous research of the emu and its
many products, and marketing of
the products of the emu.
Nelson started raising and
studying exotic hoofed animals in
1973. He has been recognized for
doing integrated emu research and
raising outstanding emus since the
early 1980 s. He has one of the
largest and most productive emu
ranching operations in the United
States.
For more information and to
register, call (215) 234-8174 or
(215) 234j0473.
For over 30
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