Dairy Compacts, for example, have the unfortunate outcome of reducing the demand for
fluid milk Higher milk prices to consumers will result in slightly lower consumption of
milk The real problem in the dairy industry has been declining per capita fluid milk
consumption (see below) This results in less opportunity for milk sales and lower milk
prices to dairy farmers No good sales person would be happy with a chart like that
below
Per Capita Fluid Milk Consumption
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3 150
100
Z 5 N <ff=
What Should We be Doing?
The key to greater prosperity for Pennsylvania dairy farmers is very simple and
fundamental First, we need to expand the market demand for fluid milk A 5-percent
growth in fluid milk consumption will result in a 45-cent per cwt gain in farm-gate milk
prices. Unlike a dairy compact, that helps some farmers and hurts others, growth in fluid
milk consumption will help all dairy farmers
One possible way to spur market demand for your products is for less pricing regulations,
not more. Allow processors to compete in the marketplace and encourage their
creativity At present there are more options for purchasing orange juice than for fluid
milk Aren’t we missing something here 7
The fluid milk industry got together in 1996 and studied barriers to greater fluid milk
consumption in a unique report, “Fluid Milk Strategic Thinking Project Official Report
to the Industry ” This is a practical and down to earth report developed by milk
marketing experts An example of the creativity that came out of this project was Chugs ,
a fluid milk product produced by Dean Foods These products have unique packaging
and labeling, in addition to great milk' Dean’s no doubt invested considerable capital to
launch this new product that is both popular and innovative.
See Us at the Keystone and
Pennsylvania Farm Show
The Name to Know for Quality and Value ...
Pennsylvania’s Role In The Global Dairy Industry
(Continued from Page 10)
... in Livestock and Equine Transportation Equipment
M.H. Eby, Inc. 1194 Main Street, Blue Ball, PA 17506 800-292-4752 717-354-4971
■ BMILK
□ FLAV
□ PSM
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Keystone Farm Show Section 1, Lancaster Farming, Saturday, January 2. 1999—Page
The second thing we need to consider is improving the financial training of our nations
dairy farmers There are new tools available today that will help families run their farm;
like a fortune 500 company These tools, like Intuit's Quickßooks, allow dairy producer
to leam how to better allocate capital, control costs and manage cash flow Farmers can
take steps today to ensure their own futures
The outlook and potential for the Pennsylvania dairy industry is limitless We have a
thriving and growing U S economy With the right message and innovative products, >
can capitalize on this growing economy and help Americans improve their diet Dairy
farmers, processors and retailers need to work together better since all have the same
objectives We can also take advantage of cheaper computers and new software to betti
manage our rural family businesses so that dairy farmers can improve their balance shei
each year and pay themselves a living wage
References
Arnot, Robert, M D Dr. Bob Arnot's Revolutionary Weight Control Program Bostoi
Little, Brown and Company 1997
Cohen, Robert Milk: The Deadly Poison Englewood Cliffs ARGUS Publishing, Im
1998
Dairy Management, Inc, Milk Industry Foundation, National Dairy Board, National
Fluid Milk Processor Promotion Board, and United Dairy Industry Association “Fluid
Milk Strategic Thinking Project Official Report to the Industry, Recommendations to
Increase Fluid Milk Sales Report #1 1996
Greising, David I'd Like The World To Buy A Coke: The Life and Leadership of
Roberto Goizueta New York John Wiley & Sons, Inc 1997
Where's your mustache? “
1