Northeast Dairy Survival
(Continued from Page 9)
Dairylea and DFA into the Dairy Marketing Ser
vices (DMS) group. DMS has two senior partners,
including DFA in Kansas City, Mo. and Dairylea,
out of Syracuse, N.Y. But 15 smaller local coopera
tives are included, comprising Mount Joy, United
Ag Services, NFO. and others, in addition to 1,700
independent farms marketing milk.
As an example of change, some of the largest co
operatives have filed for bankruptcy, including
Agway and Farmland. And the largest retailer
wasn’t even in the ballpark 10 years ago Wal-
Mart.
The flat milk prices are hitting everybody
equally, from the East to Midwest to the West.
Smith noted the period is difficult psychologically,
he said. Farmers are beginning to wonder about
staying in farming. “Do I even enjoy this?” Smith
noted. “Do I want to go through this? It’s debilitat
ing, it’s debilitating.”
Some of the concerns include the milk protein
concentrates that could be making an impact on
price, an issue that nobody really understands at
this point, and perhaps Canadian milk.
A big drop-off in cheese use especially by the
Makes More Milk w/Kern Processor
NH 790, FP 230 & FP 240
Chop and process corn silage in one
operation with New Holland’s optional
onboard Crop Pro™ crop processor.
fSpffINHOUAIO
IMICREDIT
CHOP and PROCESS
Remove Crop Processor
In Seconds With The Push Of A
MESSICK’S
SERVING TWO LOCATIONS
www.niesslcKB.com
Rheems Exit - Route 283
Elizabethtown, PA 17022
717-367-1319 800-222-3373
Pizza But company, which, two years ago, placeo
10 ounces on a pizza pie and now has reduced
cheese use to seven ounces per pie may have con
tributed to the milk price decline. But larger devel
opments in terms of bigger processors are forcing
producers to be more adaptive.
The East has some advantages that make it
strong, including the largest fluid prices and the
largest cheese- and butter-producing regions in the
U.S.
“We already have what the largest areas of the
country would like to duplicate,” Smith said.
Pennsylvania remains the fourth largest dairy
producing state. But the Northeast’s market share
is eroding, from 18.4 percent in 1990 to 17.2 percent
in 2002. To survive, strategies must be devised to
promote partnerships and specialization and for a
conducive business climate.
At the meeting, Dave Hileman, Hilecrest Farm,
noted that Pennsylvania continues to fall below the
national average in milk production per cow. “That
alone,” said Hileman, “should be a wakeup call to
those associated with dairy farming.”
(Turn to Page Al 2)
Button
RDI, Box 225 A, Abbottstown, PA 17301
West of York, PA On Route 30
717-259-6617 - 888-285-0225
HW34O SP DISCBINE
14’ -18’ Heads, 2-speed
0
ICWHOIIAN)