A36-L«ncsster Farming, Saturday, March 30, 1996
Deputy
PITTSBURGH The dairy
industry, like the rest of the coun
try, is being ripped into two divi
sions the “haves’* and the
“have-nots”, Russell Redding told
ISO industry officials in a keynote
talk at the Northeast Dairy Con
ference in Pittsburgh Monday.
Redding, Pennsylvania’s depu
ty ag secretary for marketing,
promotion and program services,
said a recent Farm Journal article
described this trend, and offered a
picture of the future dairy farmer
who will survive and prosper by:
■setting goals.
■analyzing thfe farm records,
•improving efficiencies.
■using consultants.
leading “until it hurts” to get
information.
The article “was talking about
producers, but I think it applies to
the industry as a whole,” Redding
said. He noted that “all of us need
to look at new opportunities to
enhance income,” whether it be
the export market or in building
strategic alliances to capture new
consumer dollars at home.
The Department of Agriculture
has been taking a hard look at
farm issues over the past year, he
said, and has determined it needs
to look at strengthening right-to
fartn legislation and at ways to
advance economic opportunities
in the industiy.
Noting that agriculture was the
state’s number one industiy. Red
ding welcomed conference parti
cipants on behalf of Pennsylvania
Agriculture Secretary Charles
Brosius.
With the U.S. set to phase out
daily price supports and consoli
date federal milk marketing
orders, dairy cooperatives and pri
vate processors need to become
more oriented to the consumer.
That was one message shared
by two speakers at the Conference
who gave co-op and processor
perspectives in ‘How to Position
the Dairy Industry for the Future
Under Deregulation."
Dr. Bruce Anderson, an associ
ate professor at Cornell University
who specializes in cooperative
business, said that in addition to
focusing on consumers and the
customers they supply raw milk
to, dairy cooperatives need to
“exploit their advantages." In par
ticular, co-ops should:
ops should: ____
I>ut a price on market
security, which he
defined as “a place to
send your product,"
whether it means buy
ing out a customer or
secufing a long-term
supply contract
•take advantage of their
ability to work together
under the Capper-
Volstcad Act. Together
cooperatives should be
doing joint marketing
and forming strategic
alliances to become
competitive in the
national and global
marketplaces.
Anderson also
encouraged dairy
cooperatives to :
•invest their own
money in product deve
lopment and not depend
solely on National
Dairy Board-funded
research and generic
promotions.
•benchmark perfor
mance as other compa
nies do-, on profitability
and return on equity.
Ag Sec. Says Dairy Industry In Two Divisions
•enhance members’ investment by
allowing their equity in the co-op
to appreciate.
“The next few years ate real
decision years for daily coopera
tives,” Anderson said. “Co-ops
need to grow, grow, grow toward
consumers,” and they need to
“make major positive strategic
decisions for dairy farmers.”
What’s required, he added, is
“vision, personal desire and
commitment”
In presenting the processor per
spective, Craig Alexander, execu
tive director of the Dairy Institute
of California, noted: “We need to
refocus on customers and on sell
ing more dairy products. We
should be able to agree on that.”
He thinks processors will look
to “minimize procurement costs”
and “maximize supply commit
ment” as the industry becomes
less deregulated. That presents
opportunities for co-ops, he said,
because they may be able to take
advantage of “economies of scale”
in offering a stable milk supply.
Private dealers will be looking for
compctetive pricing, Alexander
added, but co-ops should look at
offering extra service to get the
pricing they want
“The future ain’t what it used to
be.”
That’s how Bill Perry, quoting
cowboy philosopher Will Rogers,
summed up the contentious
attempt by the industry and Con
gress to write a 1995-96 farm bill.
This is definitely a Congress in
transition,” Perry said. “It’s a
reflection of society, where
change is so rapid... Congress is in
the same boat. Things are happen
ing so fast around them that they
don’t know what to make of it”
As vice president for govern
mental affairs and member rela
tions for Milk Marketing Inc., Per
ry spent time with Congressional
delegations trying to communi
cate the concerns of dairy farmers.
But bow farm legislation
impacts producers was ml their
primary concern, he said. With the
vast majority of Americans long
removed from production agricul
ture, and taking for granted well
stocked stores selling food at
reaonable prices. Perry said Con
gress had other concerns - ranging
from cutting the federal budget tc
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public’s negative perception ol
subsidies and support programs.
“The WIC (Women, Infants,
and Children) programs had more
influence on the farm bill than all
of the efforts of all of the produce!
groups combined,” he said. For
law makers there are more people
affected back home by social
programs like WIC than there are
fanners.
It comes down to a percentage t
“haves” and “have-nots," saic
Perry. “In the eyes of the public
this is a room full o)
‘haves’...People in the WIC prog
ram are the ’have-nots’.”
He also blamed the industry foi
sending mixed messages to Con
gress on what should comprise the
dairy title of the farm bill. That’:
what led CBS and Dan Rather
reporting a so-called “secret deal”
that would add “additives in
milk.” It was one side of the dairy
industry opposing the other, he
said.
Sugar and peanut fanners didn’t
have such disunity and as a result
fated better in the farm bill. Petty
pointed out.
For the future. Petty urged the
industry to work with the public
and urged the various dairy fac
tions to teach a consensus to better
communicate what dairying and
farming arc all about.
Those people in the WIC prog
ram can help us if we do it right.
Those people on the other ride of
the issue can help us if we frame
the discussion right.”
He added: “Wc'vc got to hang
together, or we’ll dog-gone sure
hang alone.”
Saying he expected a farm lull
signed into law come April, Petty
summed up the major dairy provi
sions that the House and Senate
Conference Committee agreed on:
« four-year phaseout of the price
support program.
•the immediate removal of the
assessment on farmers that helped
pay for programs.
«three-year consolidation of fed
eral milk marketing orders, which
set minimum prices farmers
receive for their raw product, to no
fewer than 10 and to no more than
14 orders.
fully funding and expanding the
Dairy Export Incentive Program
to help create new export markets
for America’s surplus dairy
products,
“Ultimately,” Perry said, “you
hope you come out with some
thing you can live /with, and I
think we did.”
The three-day Northeast Dairy
Conference opened with a cheese
reception Sunday night and got
down to business Monday and
Tuesday with sessions tackling
issues affecting the future of the
industry. Attending were food
company managers, leaders of
dairy cooperatives, government
officials and university ag profes-
Northeast DHIA Joins
Forces
Raleigh
ITHACA, N.Y. The 4,000
member Northeast Dairy Herd
Improvement Association is on
track with the transfer of records
processing services to DRPC
Raleigh. The alignment with
Raleigh, along woth their long
time relationship with Valley
Agricultural Software, gives
Northeast members a considerable
product and service advantage.
“We have joined forces with
two industry leaders. We look for
ward to continuing our successful
relationship with Valley Ag Soft
ware as well as building a strong
and successful relationship with
DRPC Raleigh.” notes Northeast
DHIA General Manager Nelvin
Empct
Valley Ag Software, providers
of Dairy Comp 305 and Scout
software, have maintained nation-
‘Mad Cow Disease ’
(Oanitnuad from Pag» ASS)
Dr. Ames, IA 50011, (515)
294-9327 or fax (515) 294-1401.
■ Dr. Jill Hollingsworth, FSIS
Epidemiology and Emergency
Programs, USDA, Washington,
DC 20250, phone (202) 205-0293.
• Dr. Dan McChesney, Chief,
Animal Feed Branch Food and
Drug Administration Center for
Veterinary Medicine, Room E
We have the products and the service to
help your farming operation.
For More Information Call 1-800-942-0500
AgriCenteriv^
sots. The host this year was Milk
Marketing Inc., the region’s
largest dairy co-op and 12th
largest U.S. dairy food company.
Headquartered in Strongsville,
Ohio, MMI has a regional office
in Syracuse, NY, and manufactur
ing operations in Indiana, New
York, Pennsylvania, and Ohio.
MMTs 9,000 dairy farm families
produce milk in Ohio, Indiana,
Pennsylvania, Kentucky, Mary
land, Michigan, New York, West
Virginia, Massachusetts, Ver
mont, and Delaware.
With
DRPC
al leadership in the herd manage
ment software arena for several
yean. They will continue to grow
and strengthen their ties within the
maritetplace, particularly in the
Northeast where the software is
aggressively marketed and sup
ported by Northeast DHIA.
The move to processing with
Raleigh allows Northeast DHIA to
provide members and Agriservice
community with a broader range
of services, and will allow North
east DHIA to focus their resources
on providing the high quality ser
vice members are accustomed to.
The transfer also allows the
cooperative the ability to easily
expand services to neighboring
markets, thereby strengthening
their position as a national leader
in providing dairy records
services.
429. 7500 Standish Place. RocL
vOle. MD 20835. (301) 594-1728.
•Dr. Gary Weber, National
Cattlemen’s Beef Association.
1301 Pennsylvania Ave NW, Suite
300, Washington. DC 20004,
phone (202) 347-0228.
Editor’s Note: The preceding
information was posted to all
users of the Dairy-L portion of
the Internet.
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• I«rvt— • bnrirwiMMtal Nm—llfcllHy