A3O-Lancaster Fanning, Saturday, November 14, 1998
(Continued from Page A 29)
the population enters Walmart dur
ing the months of November and
December), and that those markets
are going to seek long-term com
mitments from suppliers at set
costs, and on down the line.
In the meantime, he said the
links in the food chain are going to
be reduced and there ate to be few
er middlemen involved.
He predicted that the production
phase of the daily industry is to
become even more closely linked
to the marketing phase, because
the “engine is pulling the cars.”
Berg’s comments suggested
that the responsibility of marketers
is to do more than grow fat on the
temporary losses experienced by
producers competing at losses.
“It is imperative that we can
communicate to producers about
the future so their investments can
match.”
He said total alignment of pro
duction to markets seems likely.
He said it appears that a number
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of competitive jobs are going to be
eliminated, such as agronomists,
feed dealers, seed dealers, etc.
This is so, he said, because of
those integration alignments.
Berg said that when Monsanto
began using commercial fast deliv
ery trucks to deliver its bovine
somatotropin products to the farm
it was new and some people didn’t
believe it would be accepted.
Not only is it accepted, but it is
being increasingly copied.
While Berg presented more sta
tistics that bolster the image of the
domestic dairy industry as being
driven by consolidated consumer
ism forcing consolidated produc
tion, he said there are several criti
cal issues that are key to the suc
cessful integration of the modem
and future dairy industry.
He said effective communica
tions from the marketing to the
production sectors are essential; a
systemic integration is necessary;
respect for diversity in market
demand is necessary (targeted pro-
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ducts for targeted consumers);
adequate capitalization in order to
take advantage of new technology
and growth is necessary; and per
haps most importantly is the indus
try’s acknowledgement and
respect given to its heritage, pur
pose and values.
“I would start with that,” he
said. “If you lose your purpose,
values and heritage, then you are
adrift”
Dairy Compact
While not dissenting with
Berg’s outlook, Becker discussed
the successes of the Northeast
Dairy Compact and the possibility
of continued or new governmental
price controls for producers.
Becker’s education and employ
ment has been as an agricultural
economist. He has experience in
Europe and Russia as a consultant
(Turn to Pag* A3l)
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From the left, DPC President Robert Turner presents an
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