FUTURES MARKETS
Midwest or other western orders
will face the brunt of these
adverse market forces. Dairy
farmers producing unregulated
milk (Grade B or C milk) will
face the lowest milk prices at
Class 111 values.
How to alleviate these market
conditions? Here is a list of
ideas;
Step I: Someone, anyone,
move cheese into the dairy price
support program. This will
immediately offer market
stability. That effort is not
without some cost, however. A
processor will have to arrange for
special packaging and invite an
inspector into their plant. That
just takes time to arrange.
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(Continued from page AI6)
Step 2. Slow down the rate of
growth in cow numbers. This
should go without saying, but it is
the number one problem m the
dairy industry today.
Unfortunately, the market will
take care of some of this. Some
farms will be forced to exit the
business. Hopefully larger farms
will see an opportunity to slow
down their expansion plans.
Step 3. Allocate more milk to
butter/powder. Right now the
support is on powder. Allocating
additional milk to butter/powder
production may help stabilize
cheese prices. However, it may
also reduce butter prices. That
would be bad for Class I, 11, and
IV prices.
330 Fonderwhite Road, Lebanon, PA 17042
Step 4. Slow down expansion
into new cheese plants. Perhaps
now is the time to reconsider
future investment plans in cheese
facilities. Others may want to
consider whether or not to close
down older facilities.
In other news, I just got back
from speaking at the 2nd Annual
New England Dairy Day in
Burlington, Vermont. There was
excellent attendance and we had a
spirited discussion about milk
marketing, consolidation in the
dairy industry, and issues related
to the Northeast Interstate Dairy
December 2000, and $9.45 to
$9.90 for January through May
2001.
Those areas of the country that
have limited Class 111 use (orders
in the east) will effectively be
buffered from most of this
dramatic price declines. For
P.T.O.
enerators
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Lancaster Farming, Saturday, November 11, 2000-A29
example, dairy producers m the Compact. You can download the
Northeast federal order have only text to my speech at:
33 of sales used for Class 111 http://www.aers.psu.edu/dairyoutl
purposes. However, farmers that OD k/
market milk in the Upper
Pennsylvania Junior Holstein
Association Contest Deadlines
STATE COLLEGE (Centre
Co.) The Pennsylvania
Junior Holstein Association con
test deadlines are fast approach
ing.
Junior members reminded
that the following contests have
January 1,2001 deadlines. Con
tests include distinguished
junior member contest forms,
junior progressive breeder
awards, breeder of excellent
award, 30,000-lb. Production
Award, Total Performance
Award, Achievement Scholar
ship Award, 150,000-lb. Life
time Production Award, Public
Speaking Contest, “PAL” Adult
Leader Award, and folding dis
play contest.
Two other contests have later
HEALTH KICK
deadlines, including the Dairy
Bowl Contest with a Jan. 9,2001
due date and the photo contest
where members bring their en
tries to the convention on Feb. 2,
2001.
There is one new contest this
year, an Extemporaneous Public
Speaking Contest. Junior mem
bers will enter at the Junior
Convention on Feb. 2, 2001 and
participate in the contest on Sat
urday, Feb. 3.
For contest entry forms or ad
ditional information on Pennsyl
vania Junior Holstein activities
please contact the Pennsylvania
Holstein Association, 839
Benner Pike, State College, PA
16801. Phone; 814-234-0364.
Fax: (814) 234-1698.