A26-Lancaster Farming, Saturday, June 28, 2003 (Continued from Page Al 6) dry proteins (Chapters 4 and 35 MPC, casein, caseinates, and al bumins) and convert them to tons of pure protein, imports in 2002 rose 6.3 million pounds (2,878 metric tons), or 2.3 percent. Wow, that’s a lot of protein. Or is it? Between 2001 and 2002 U.S. dairy fanners marketed an extra 138.6 million pounds of protein. That’s roughly 22 times more The Shippensburg Truck & ** CM X 9500# & 10,000# Super Pro Special fa Antrim Diesel Clugston Ag & Turf, Inc. Forrester Farm Equipment, Ltd. Gossard/Napa Auto Parts SATURDAY, JULY 8, TPM CUIIIIIBIIfiBI IB A CA IHAfTAiIMhC Adults - $lO.OO Advance & $12.00 Gate Children (Ages 5-10) - $5.00 Advance & $6.00 Gate protein from U.S. milk market ings in 2002 than from imports. Or, stated another way, between 1997 and 2002, annual average production of protein from U.S. dairy farmers rose 74 million pounds a year. So, yes, imports of MPC and other protein products weighed on the farm gate milk price, but not nearly as much as growth in the U.S. milk supply. That spreadsheet I talked about shows that over the period Tractor Pullers Present 20,000# • Cheese isn’t as much of a prob lem as are the other two prod ucts. This can only occur when supply increases (production plus imports) and demand isn’t strong Big Rigs 3850# 4X4 Trucks all &CVI SpCHAOW, Greencastle Livestock Market, Inc. John’s Towing & Mobile Repair Shippensburg Leasing 1997-2002, imports of dairy prod ucts converted to a component basis rose significantly: butterfat rose 89 percent, protein rose 30 percent, and other solids rose 154 percent. As for exports, protein and butterfat exports were fairly small compared to growing ex ports of other solids. The other half of the supply/ demand equation is demand. What evidence is there that con sumption of milk and dairy prod ucts fell in 2002? As I stated earlier, I don’t like USDA’s mea sure of dairy product consump tion on a “milk fat, milk equiva lent basis.” That’s because I really don’t know what it means. What I do know is that ending stocks of dairy products, particu larly butter, nonfat dry milk and cheese, are well above year-ago levels. enough to absorb the extra prod uct. The other source of informa tion I have is complaints from in dustry folks describing flat dairy sales. Sales of dairy products just aren’t gtbwing at the same rate they did over the last 10 years. I’m currently doing research into what factors caused the all milk price to decline $2.84 per CWT between 2001 and 2002. Trust me, it won’t be easy. To do a good job, I have to account for imports, exports, production, stocks, and commercial disap pearance of all dairy products on a protein, butterfat, and other so lids basis. I have to not only re flect imports of dry proteins such as MPC, but also imports of fat mixes, cheese, chocolate block, etc. Then I have to figure out how these imported products were used. In some cases they do substitute with domestic dairy products, in other cases they don’t. Try convincing a food pro cessor that needs protein in their ingredient list but not lactose to Final COOL Session In Lancaster (Continued from Page A 1) Producers, meat packers, food wholesalers and retailers, and trade organization representa tives assembled to hear the last words in a public forum for or against the mandatory labeling of beef, lamb and pork; fish and shellfish; fruits and vegetables; and peanuts to begin Sept. 30, 2004. Forty-five speakers were registered at 1 p.m. to provide three-minute commentary on OOOL.< Representatives from Weis Markets, Hatfield, Taylor, Excel, Leidy’s, Sisco, Quaker Meats, Pennsylvania Beef Council, and others addressed the impact of COOL. Several producers were present despite a break in the re gional weather, which allowed many producers to catch up with fieldwork. Meanwhile, in Washington, D.C., the House Agriculture Committee was conducting a ses sion on COOL to hear from USDA officials, food groups, pro duce growers, and livestock groups. This was done to respond Lancaster Farming Check out our Website! www.lanci LANCO DAIRY FARMS CO-OP, INC . Annual Meeting Date: Ttiesday, July 8, 2003 Time: 7:30 PM Place: Family Cupboard Restaurant (Harvest Drive, Intercourse, PA) The evening will begin with guest speaker Calvin Covington, General Manager of Southeast Milk Producers, Inc. Mr. Covington was the former Executive Secretary of the American Jersey Cattle Club. World Dairy Expo is recogniz ing Mr. Covington as the 2003 Industry Person of the Year. We invite other dairy producers to come and hear Mr. Covington. Following Mr. Covington’s remarks LANCO DAIRY FARMERS CO-OP Will hold their ANNUAL MEETING Refreshments will be served use U.S. produced nonfat dry milk instead of imported MPC. Of course while I’m toiling away at my spreadsheet, check ing and cross checking the facts, someone out there will write that all university dairy economists (me in particular) are dummies and can’t count. The fact is, the dairy industry needs good factual information regarding what im ports have done and what they have not done. That’s because we are at the beginning stages of a new WTO that will set global trading rules for everything from intellectual property to agricul tural commodities for years to come. We can’t simply outlaw dairy imports they are part ol the entire WTO. But the dairy in dustry can provide credible in formation on market impacts. One thing is obvious to me. We’ll have a hard time convinc ing others to listen to the dairy industry if we start with the as sumption that supply and de mand doesn’t have anything to do with milk prices! to the actions of the House Ap propriations Subcommittee, which last week voted to cut off funding to implement the COOL legislation. Washington voted to not fund COOL. In Lancaster, the" American Meat Institute (AMI), represent ing meat packers and processors, organized an information session on COOL in the morning prior to the USDA meeting. They had in vited the industry and the media to hear from them Shout the USDA’s country of origin label ing regulations, which' they called one of the most complex, costly, and cumbersome laws ever to hit the food industry. AMI Vice President of Public Affairs Dan Murphy and AMI Senior Vice President of Regula tory Affairs and General Counsel Mark Dopp were on hand to con duct interviews with the media. Early press deadlines prevent ed extensive coverage this issue. Look for more scheduled in the next issue of Lancaster Farm ing. ina.com
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