i_ailuaoici i aniiniy, ocuuructy, juiy Pa, Cattlemen Encouraged To Attend 2003 Field Day ELIZABETHTOWN (Lancas ter Co.) Cyagra/Em Tran, lo cated here is this year’s host for the Pennsylvania Cattleman’s Association and Pennsylvania Angus Breeders Association’s 2003 Field Day. The Field Day draws register ed and commercial cattle produc ers from Pennsylvania and neigh boring states. The 2003 Field Day will be July 19 and provide producers with the opportunity to learn Milk Prices Improve Ken Bailey Penn State Professor Of Agricultural Economics, Dairy Marketing And Policy July 1,2003 • Cheese gains $O.lO/pound in one day. • Class 111 futures top $l3/ CWT. • New Penn State study on imports released. Finally, there is some good news for hard working dairy farm families. The price of cheese and Class 111 futures in Chicago has shown some real strength. Blocks closed at $1.4150 per pound on the Chicago Mercantile Exchange on July 1. There were 23 bids to sell cheese before two loads were sold. Barrel cheese closed at $1.39 per pound the same day. Strength in the cheese price will result in real gains in farm gate milk prices. The July Class 111 futures price settled at $11.70 per CWT on July 1. So farmers will likely see actual Class 111 prices rise almost $2 per CWT from June to July. Remember, the milk check you receive on July 15 will still reflect the low June prices. Class 111 futures are expected to peak at $13.19 per CWT by September. So why are milk prices rising? Well, this was a big surprise to me, but I can take a stab at it. First, USDA’s Milk Production report clearly showed that milk cows and productivity were de clining. It wasn’t much, but the direction was clear. Second, trad ers in Chicago likely woke up one day and realized it was July and that the weather would soon be getting hot. That makes for less components and lower cheese and butter production. So proces sors wanted to avoid potentially higher future prices. Again, a good risk manage ment strategy would be for dairy producers to consider locking in a portion of their summer and fall milk production at these fa vorable prices. I would look at say 20-30 percent of milk mar ketings for August through De cember. If prices get much high er, you’ll make money on both the portion you locked in and on the portion you gambled with. In other news, I just released a Penn State study on dairy im ports. I did a lot of calculations and made a bunch of assump tions. The bottom line is I ac counted for the impact of imports on supply and demand. Generator Systems Diesel or Propane, 10-500 KW, Agricultural and Industrial. New, Used or Reconditioned Martin Diesel Services Shop (570) 658-5303 Office (570) 922-4494 more about Cyagra/Em Tran, ed ucational seminars, commercial exhibits with the latest products and services to enhance the bot tom line, and a chance for pro ducers to visit the Em Tran facili ty- With a focus on the producer, there will be a set of seminars fo cusing on key issues of beef pro duction to be given at 9:30 a.m. and 1:30 p.m. The Reproductive Technolo gies Session will discuss embryo The study shows that imports were significant over the period 1997-2002, particularly imports that contained protein. Protein imports rose 30 percent over this time period. Buy itself this figure is meaningless. What is more sig nificant is that protein imports accounted for 6.5-8 percent of do mestic protein consumption. That is above the 5 percent mar ket access figure I had expected from our WTO trade agreement. Imports, however, did not ex plain all of the volatility in milk prices. The fundamental problem in the U.S. is that domestic use has been surprisingly flat over the period 1997-2002. Domestic use for protein and other dairy solids rose an average 0.9 and 0.5 percent per year, respectively. That’s not much. It was better for milkfat, which increased an aver age 1.6 percent a year. But milk production rose an average 1.5 percent a year. Where did this difference go? Well, to Uncle Sam. Excess pro tein and other dairy solids in creasingly went into government storage programs under the Dairy Price Support Program. As of this writing, there are 1.33 bil lion pounds of nonfat dry milk in government storage. This study confirms two things. First, imports are signifi cant and should be monitored by the U.S. dairy industry. This study proposes a method of how to do this. This is particularly im portant as we negotiate the Doha Round of the WTO and discuss a bilateral free trade agreement with Australia. Second, we can not continue to operate the Dairy Price Support Program as we are doing. Building more dairy farms and bigger dryers is simply not sustainable unless there is a growing commercial market for these dairy solids. The U.S. dairy industry has in effect surrendered a small but growing portion of the U.S. pro tein market to importers who are willing to sell food processors a high quality protein product (with no lactose) in the form of MPC and casein. These products are not made here in the U.S. be cause it is easier (less risky) for U.S. processors to simply make nonfat dry milk and sell it to USDA. Instead of processing a product nobody wants, we should focus instead on developing a do mestic processing industry for these protein products here in the U.S. That wUi involve changing the way we support family farms. as* £b Sk j3b.4feuttuSi A & j^.AA A A l®r WW w'W’w VVw ww'Vw wVvPV | | Water Wagon § A The Freshest Water on the Troll Pools • Power Washing • Wells • Cisterns $ Stainless Steel Water Truck Rentals $ $ I 8 transfer and how to capitalize on the available technologies; im proving heat detection by using Heat Watch, AI Enhancers, and the new synchronization tool CIDR; and genetic preservation. Cyagra staff will walk through the steps of how cloning is pre formed and how breeders are using this technology. The Marketing and Manage ment Session will focus on three different areas such as the Branded Beef program, selecting genetics for a grassland manage ment program, and utilizing by products in a nutrition program. The Pennsylvania Department Study Looks At Ag Contributions To Ohio Economy COLUMBUS, Ohio Ohio’s food and agriculture-related clus ter contributed $79.6 billion to the state’s economic output in 2000, according to a recent Ohio State University research report. The food and ag-related cluster also provided 15 percent of Ohio’s employment and 9 per cent of total Ohio income. Contributions for the report are based on the “Food and Re lated Agricultural Cluster.” The cluster consists of five categories: farm inputs and machinery; farming; processing; food and forestry wholesale/retail; and food services. The report high lights these areas and tracks the output of each industry through out the complex economy. The dollar amounts of the ag cluster change each year, but the percentage of contribution to the state’s economy changes very slowly, said Tom Sporleder, an agricultural economist and the report’s researcher. This is be cause the Ohio Food model (OH FOOD) is based on structural un derlying relationships in the economy, he said. Ohio’s gross state product Animal Health Funding Benefits WASHINGTON, D.C. Provisions in the FYO3 supplemental military spending bill approved re cently will enhance home land security efforts and provide desperately needed funding for im provements to the U.S. an imal health infrastructure, according to* the National Cattlemen’s Beef Associa tion (NCBA). The provision allocates $llO million for the Na tional Animal Disease Center (NADC), National Veterinary Services Labo ratory (NVSL), and Center for Veterinary Biologies in Ames, lowa. The measure passed in the Senate April 11, and in the House April 12. “The NADC and NVSL lead valuable research ef forts and monitor for ani mal diseases. 24 hours a day • 8 days a week Conestoga Water Wagon P.O. Box 31 Conestoga. PA 17516 717/629-2756 “The Freshest Water on the Trail” of Environmental Protection (DEP) will be on hand to talk to visitors about the Stream Bank Fencing Project recently com pleted at Em Tran. Visitors can learn about the values of stream bank fencing and related pro grams offered by DEP. Lunch will be served at the Field Day beginning at noon, fol lowed by the official welcome by Alejandro Cantarelli, CEO of Cy agra, Inc. The keynote speaker is Don Coover of SEK Genetics. Coover will be talking about cloning from a marketer and breeder per spective. Coover will share his ex periences with cloning and (GSP) is a frequently used mea sure of economic activity, said Sporleder, who also is a professor and farm income enhancement endowed chair in the Department of Agricultural, Environmental, and Development Economics. The food and ag cluster contrib uted $36.5 billion, or 10 percent, to Ohio’s gross state product for 2000. “GSP looks solely at the end product when all the value has been added,” Sporleder said. “It is a common metric used for measuring economic activity.” The new report indicated a growth in nursery and horticul ture industries and a decrease in livestock production. These changes illustrate the urban trends common to Ohio, Sporled er said. The nursery and horticulture industry now accounts for about 42 percent of ag production, con tributing about $1 billion to the gross State product. This is com pared to 23 percent of ag produc tion in 1995. The entire food and agriculture complex accounted for over 1 million jobs in Ohio in 2000, or ATTENTION DAIRY FARMERS LANCO Dairy Farmers Co-Op Inc. 1373 Beaver Dam Road, Honey Brook, PA 19344 Lanco Wants You To Check Out Our Numbers 60 Cent Somatic Cell Premium. Broken in 5 segments down to 400,000. 55 Cent Over Order Premium 70 Cent Hauling - No Stop Charges On 4 Milking Pick-Up Over 800 Members In PA & MD fiSf' 7-Fieldmen To Cover All Your Needs 11-Local Haulers No Equity Deductions, Marketing Fees, Market Administrator Test Fees or Membership Fees. We are a farmer run and controlled grass roots co-op and milk marketing division of Allied Federated Co-op, Canton, New York. Call us today! We are truly farmers coming and working together. 315-858-0312 - 717-789-9685 - 717-993-6808 thoughts on the future applica tion of this genetic tool. The field day will conclude with a visit to Dwight Hess’s Feed Lot located near Cyagra/ Em Tran. For more information on the 2003 Field Day, visit the Pennsyl vania Cattleman’s homepage at www.pacattle.org or the Cyagra/ Em Tran homepages at www.em tran.com or www.cyagra.com. For questions, contact the Pennsylvania Cattleman’s Asso ciation at (814) 238-5888; the Pennsylvania Angus Breeders, Barb Weaver at (717) 354-7477; or Steve Mower at Cyagra/ Em Tran at (717) 367-5420. about one of every seven jobs. Employment within the cluster comes primarily from the food services sector and the food and forestry wholesale/retail sector. These sectors employed just under 720,000 Ohioans in 2000. This accounts for 79 percent of those employed by the ag cluster and 10 percent of Ohio’s overall employment. Significant employment is ex pected from these areas, Sporled er said. Food services and food and forestry sales sectors are labor-intensive, dealing more with final consumers and serv ices. “The food and ag-related clus ter contributes roughly $1 in every $lO of the gross state prod uct, which is a substantial contri bution,” Sporleder said. “It also contributes 15 percent of the total employment-essentially one out of every seven jobs. This shows that the food and agriculture-re lated cluster continues to be a vital and vibrant part of the state’s economy. The results also show that the food processing sector continues to play an im portant role in Ohio’s economy.”
Significant historical Pennsylvania newspapers