Editor,
I have seen veiy little in the
Farm Press concerning a very seri
ous threat to the stability of the
milk marketing system in Penn
sylvania by limiting the pricing
authority of the Pennsylvania
Milk Marketing Board (PMMB).
House Bill 2686 sponsored by
Representative Colleen Sheehan
from the Philadelphia area, would
effectively eliminate minimum re
tail milk prices. This means no
control on out of store milk prices.
At first thought, this seems rela
tively harmless, after all the con
sumer buying milk at the store is a
long way from the farm. Besides, I
am told lower prices mean more
milk sold at the higher class one
rate, so what’s the problem?
The problem is no prices stay
confined to one part of the market
ing system. If the milk price in
creases, eventually the consumer
will pay. just as when the price
goes down this decrease will end
up down on the farm.
In our present system under the
Pennsylvania Milk Marketing
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Board all increases and decreases
are passed through the system
from farm to consumer, with mar
gins for processors and retailers
being maintained. That is why it
works so well, all milk price
changes are immediately reflected
in out of store prices.
Under a system that does not
regulate the price out of store,
prices will fluctuate, but competi
tion will eventually send all price
decreases back through the system
to the point of origin (the farm).
Without the Pennsylvania Milk
Marketing Board regulating retail
prices there will be no over order
premiums, as there will be no sys
tem to pass the increases to the
consumer. The result will be no
premiums paid to the farmers be
cause the consumer will not pay
and the retailers and processors
will not pay from their margins.
I have heard the argument that
more milk will be sold at lower
prices. I have seen no numbers
that would indicate more sales at a
higher blend price will cover what
the farmer loses in premiums.
• C.B. HOOBER & SON, INC. • Intercourse, PA
717-768-8231
• HOOBER EQUIPMENT INC. • Middletown, DE
302-378-9555
• C.B. HOOBER & SON, INC. • McAlisterville, PA
717463-2191
CASBIh
Authorizod
DPS Station
I also find it very ironic that the
Pennsylvania Farm Bureau has a
policy in force now that supports
the elimination of retail milk
prices, and at the same time it is
preparing testimony to be pre
sented to the PMMB, to support
an increase in the over order pre
mium because of increased feed
prices. The ability to petition the
PMMB for a premium increase
will be severely limited if store
prices become non-controlled.
Either this policy needs
changed to support the Pennsylva
nia Milk Marketing Board and
maintain the control on retail pric
es, or we need to get used to no
premiums, price wars and more
cheap milk. Economics says we
can’t have both.
All farm bureau members need
to understand what this policy
means and make an effort to
change it, if you don’t agree with
it. If we don’t get involved, the vo
cal minority will once again set
the rules we have to live by.
New Holland, PA
(717) 354-4996 (717) 445-7561
UPS
Via FED. EXP. - UPS - PPSH -
BUS - AIR FREIGHT, ETC.
William C. Itle
Loretto
• f
(Continued from Page AID)
ture and Awards Banquet, Ven-
ship Organizational Meeting
and Field Trip, Lebanon Ag
Carter, 12:30 pjn.-S pan.
Fall Harvest and Sawmill Show,
Jacktown Community Center, 7
agcment Symposium, Mairiott-
Hairisburg Hotel, Harrisburg,
thru Oct 23.
ADADC District 9 meeting. Tally
Ho Restaurant, Richfield
Springs, NY.
ADADC District 14 meeting. Tal
ly Ho Restaurant, Kanona, NY,
Solanco Young Farmers Silage
Com Management
Lycoming Country Cooperative
Extension 82nd Annual Mcet-
Randall G. Renninger
Certified Public Accountant
Specializing in agriculture and construction industries
“We help business people discover ways to ;
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(717) 560-5720 0 Fax (717) 560-5721
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ADC Is the Place To Be
Financial stability and the greatest return from the marketplace
- the outstanding benefits that Jeff Moore refers to - are among the
strengths of the premier dairy cooperative in the region.
Atlantic Dairy Cooperative has a 78-year history of excellent
service to its members. Financially strong, ADC guarantees a market
for all member milk and excels in maximizing returns. ADC is a
leader in providing equity payments, quality bonuses and over-order
premiums to members.
Nearly 4,000 dairy farmers agree that "ADC is the Place to Be "
For free information on how you can secure the future of your
dairy farm operation, write or call:
Atlantic Dairy Cooperative
1225 Industrial Highway ISkg
Southampton, PA 18966 -lIWPVI
1-800-645-MILK
Lancaster Farming, Saturday, October 5, 1996-All
ing, Eldred Twp. Fire Hall,
Wanensvillc, 6:30 p.m.
Ephrata Area Young Farmers
Mentoring program continua
tion, Ephrata Senior High
Health and Processing, Shera
ton Ocean City, Maryland, thru
Oct 25.
DEP Ag Advisory Board meeting,
Rachel Carson State Office
Building, Harrisburg, 10 a.m.
ADADC District 8 meeting. Hid
den Inn South, Kortright, N.Y.,
Owego Treadway Inn, Owego,
N.Y., 7:30 p.m.
Chester County Beef Quality
Assurance meeting, Chester
County Cooperative Extension.
Wyoming County Sheep and Wool
Producers' Association annual
meeting. United Methodist
Church. Centcrmorcland.
Call about our FREE seminars
Low Cost Healing
At Its Best!
906 E. Main Street (Rl. 322) Ephrati.PA 17522
1 Block East of Rt. 222
(717) 733-4973 800-642-0310
—-Jeff Moore
Centreville, MD
JENDAR ♦
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