ige 2-Keystone Farm Show Section 1, Lancaster Fanning, Saturday, January 2, 1999 Pai Editor’s Note: At the Dairy Futures Conference held in State Col lege in December, officials from all segments of the dairy industry gathered to discuss the challenges to producers, processors, and marketers of milk and dairy products. One of the keynote speakers was Dr. Ken Bailey, from the University of Missouri. Here is the text of his presentation. Paper Presented at the 1998 Pennsylvania Dairy Futures Conference December 17-18, State College, Pennsylvania The outlook for the Pennsylvania dairy industry is both exciting and challenging Pennsylvania has some of the leading counties in the U S in terms of milk production, has a tradition in dairy farming going back to the colonial days, and has a strong infrastructure Pennsylvania has a comparative advantage in milk production That’s economics jargon for saying the state has a long-term advantage in milk production over her neighbors Clearly the objective of the dairy industry in Pennsylvania is to 1) maintain a family structure in dairy production, 2) maintain a strong rural infrastructure for milk production, transportation and processing, and 3) develop strong markets for dairy KEYSTONE FENCE SUmiES (717) 738-0923 See us at the KEYSTONE FARM SHOW York Fairgrounds Booth 541, in the Horticultural Hall Split R^, amon( j Mesh Locust And Tieated Pine Posts Hemlock and Tieated Poplar Rails I~) J] Complete Line Of Hi-Tensile Boaid Gates & Split Rail Gates Round Posts -7’&B’ - 6 1/2’ - -6 1/2’- -6 1/2’ - - 6 1/2' - 2”x3” 3"x4” 4”x5" s”x6' 6’ x 7" 7’-8’- 10’ 7’-8’- 10’ 7’-8’- 10’- 12’- 14’ 8’- 10’- 16'-20’-25’ Pennsylvania’s Role In The Global Dairy Industry By Dr Ken Bailey Commercial Agriculture Program University of Missouri Boaid Fence I x 6 xl6 Oak & Tieated Pine Fence Supplies Xubular Stcel Gates 40 CCA (40 Year) Piessuie Tieated Posis U. 4. * * Slip Board l"x6 -lO' Oak & Treated Pine ■a, 2x4 Non Climb I Class Woven Wire Hi Tensile f 4 Galv Solid Lock Deer/Game J Square Post 4”x4” - 7’-8’ 3”x6” - 7’-8’ 4”x6" - 7'-8' 6’'x6” - 8’ ★ Deliveries Available ★ im mi products These are the fundamentals that have kept Pennsylvania a leader in the U S dairy industry for many years Pennsylvania dairy farmers need to reassess their position in the future U S dairy industry This industry is changing rapidly In many ways it is no different that the automotive, computer, or banking industries The U.S marketplace changes rapidly and successful players need to understand these changes and profit from them. In the dairy industry, these changes are well within the grasp of small dairy farm families in Pennsylvania There are tremendous opportunities for those dairy farmers that realize change is needed and want to be successful in the new marketplace of the future Thus my message today 1 The free market is working; no need to fear the future 2 Let’s focus on the real problems in our industry 3 The outlook for milk and dairy products looks promising, and 4 Pennsylvania dairy farmers have a comparative advantage in milk production Current Situation The outlook for the dairy industry looks very promising at the moment. 1 Milk prices are at record highs, and grain prices are very reasonable due to a global glut and reduced demand in Asia The result is very high margins (difference between milk prices and feed costs) for dairy farmers. The reason for these high milk prices is supply and demand The supply of milk has been tight this year due to lower production levels in the West (primarily California) due to heavy spring rains and summer heat. Demand for cheese and butter has been very strong, creating a strong demand for raw milk, especially the fat content of milk Thus strong markets and limited supplies have resulted in record high prices for milk (Turn to Pag* 3) Trailer Hitches THE BETTER TMR MIXERS LOWEST COST PER CUBIC FOOT * JJ^k <* ftf r^3l • low h.p. - means low maintenance •Available from 80 cu. ft. to 500 cu. • Powder-coated, all steel available in stainless steel • Rugged and affordable See us at KEYSTONE FARM SHOW - Jan. S A 6 Booth 431-433 in the OLD MAIN BUILDING 120 Waodcorner Rd. Lititz, PA 1-800-292-9649 Brake Controls $ Fold-down Gooseneck $89.95 ZIMMERMAN FUNNEL MIXER • Portable • Simple construction - few moving parts • Makes fluffier feed • Rugged and affordable Bethel, PA 717-933-8420 Convert - a - Ball $31.96?
Significant historical Pennsylvania newspapers