Milk Price Reform May Improve Farmer Pay, Not Understanding (Continued from Page Al) orders from 32 down to from 10 to 14, as mandated in the 1996 Farm Bill. He said that because Secretary Glickman issued the proposal very recently, and because of its volume and depth, he could only speak from information gathered from USDA news releases and a several-page impact analysis available on the USDA’s Internet homepage. Yonkers first backtracked to provide some historical context for the federal order reform, and how the dairy industry has been responding to the phase-out of fed erally set milk production support prices (set to be eliminated com pletely in 2000), as well as milk pricing mechanisms. He noted that until about 1987 to J-SKU Silo Unloader Technology lakes a (iiant Leap forward! wj^luantum SYSTEM CALL US TODAY FOR A VIDEO AND BROCHURE. The Silo Unloader Experts LKASK IT TODAY WITH ONK PAYMENT DOWN! • CABLE ALLEY • WASTE HANDLING EQUIPMENT • FEED HANDLES SCRAPER DUMPS - TANKS - TILLAGE APPLICATOR BELTS - FEEDERS - CONVEYORS See These Dealers For Details Now FRANKLIN’S FARM SERVICE Laceyville, PA 717-869-2407 HARRY TROOP Cochranville, PA 19335 215-593-6731 HISTAND’S FARM & HOME SERVICE Rome, PA 717-744-2371 HOOVER EQUIPMENT Tyrone, PA 16686 814-684-1777 1990, the federally set milk support price represented the foundation for the price paid by processors to farmers for milk, and the two prices tracked closely. Then the President Bush Admi nistration and Congress put into effect deficit reduction freezes on the support price, which allowed the support price to fall below cost of production. While the growth of milk pro duction curtailed, it didn’t stop. At the same time, immediate demand for some dairy products grew, beyond what the needs of population growth and social change would seem to warrant. 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Using such tools, dairy produc ers can now lock-in a price, which serves to buffer either a decline or rise in actual milk price received. However, Yonkers dealt more specifically with the proposed changes to federal pricing orders. There are 32 federal orders which have become established over time. Each is somewhat unique, and they have some diffe rent rules and mechanisms for establishing milk prices. They were instituted by the fed eral government to help keep dairy farmers in existance in order to keep food available for United States citizens. The dairy production and mark eting environment has changed The Series IV is available in trailer, truck and stationary units with mixing capacities from 80 to 520 cu. ft. For larger operations, there's the super heavyweight Roto-Mix Commercial line with mixing capacities from 420 to 900 cu ft Call today and arrange for a demo. You'll see Roto-Mix really tips the scales in your favor. SOMERSET BARN EQUIPMENT Somerset, PA 15501 814-445-5555 STAR SILOS Myerstown, PA 17067 717-866-5708 WALNUT BARN EQUIPMENT Pori Royal, PA 717-436-9429 significantly since they were created, though they have still served to set milk price. Meanwhile and more recently, the dairy industry began extreme national competition between reg ional producers and companies that resulted in mergers and clos ings, as well as strategies to control regional milk and dairy supplies with a longer term interest in con trolling production and price. Thus, the consolidated produc tion and processing industries have grown geographically to the point of overlapping several to many dif ferent federal milk orders. This has caused some grief for those who must calculate the milk’s value and how to pay pro ducers, as well as those attempting to market the milk. . GLADHILL TRACTOR MART Frederick, MD 21701 301-663-6060 MD & VA MILK PRODUCERS ASSOC Frederick, MD 21701 301-663-6552 NEW JERSEY GEORGE COLEMAN Elmer, NJ 08318 609-358-8528 Furthermore, mega chain mega-stores have overtaken a large por tion of the domestic retail market, and the chains have enjoyed extreme competitive ness among dairy pro duct suppliers to gain shelf space. The failure of smaller or less efficient groce ries and markets to com pete with the mega stores and chains has resulted in a lack of markets for some rela tively small dairy sup pliers has added to prob lems for that group of independent processors. In effect, the actual flow of milk from farm to end user is almost impossible to track on a daily basis. That’s because large collective marketing organizations and pri vate organizations col lect more milk than what they need (to ensure year-round adequate supplies) to fulfill competitive con tracts. and/or produce their own varieties of dairy product The operational surp lus is then sold or used in whatever manner brings the highest return, even if much below cost. Through collective effort to build a national dairy promotion effort and because variations have decreased greatly, milk is considered a generic product to the greater dairy industry. It is promoted and marketed as such. (There are, of course, those who distinguish their milk. They are those who niche market based on superior or unique taste or quality. As well, the cheese industry has been mak ing some distinctions and paying differently because of the differ ences in milk proteins between some dairy cattle breeds.) The actual value of the milk to the farmer depends more on through which, and to which, organization the milk is marketed. (Turn to Pag* A2S)
Significant historical Pennsylvania newspapers