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Show 8 - THE CITIZEN THURSDAY. JUNE 22, 1972 TPne Coehe iDDy TCne Inliigilhiestf IPirkt BEGINNING OF A USEFUL CAREER Production Andl Income To Rise Milk production in 1972 will probably exceed the 118.6 billion pounds of 1971. Basically the same conditions that increased production in a plentiful 1971 still exist supply of herd replacements, the eased labor situation, and .high milk prices. In addition, grain and concentrate prices have dropped. According to A. G. Mathis of the United States Department of Agricultures Economic Research Service, herd replacements on hand at the beginning of 1972 were 32.1 per 100 cows, up from last years good supply. Even with relatively nigh prices for slaughter cows, the decline in milk cow numbers likely will continue at a slow rate. The 1 percent decline during 1971 was the least since 1954. The prospect of another small drop strongly indicates a gain in milk output this year, since milk output per cow has been rising about 2 percent in recent years." The high level of national unemployment, running between 5 12 and 6 percent, has made labor available for dairying. This easier labor supply will help to slow the decline in the numbers of dairy farms and milk cows. Farmers milk prices have been high since 1965, increasing nearly 40 percent in the intervening years. Though less milk was sold from farms in 1971 than in 1965, farmers grossed about 35 percent more income from dairying in 1971. Net returns were limited by increased production costs. It is expected that the net income for dairying will be maintained in 1972 with current lower feed costs and price restrictions on many imports. Cross dairy income for 1972 may reach $7 billion. In 1971, higher prices and larger farm marketings income caused farm gross from dairying to climb about 4 percent to $6.8 billion. Farmers received an average of $5.86 per 100 pounds of milk this past year, some 3 percent more than in 1970. Mr. Mathis notes that little rise from a year earlier is likely after March 1972, assuming no change in dairy price support levels and purchase prices or in Federal order pricing. In the first SO . quarter, prices averaged about 3 percent over last years $5.90 per 100 pounds. Supply-deman- d conditions indicate thut manufacturing grade milk prices (adjusted to the average annual fat test) will likely hold close to support levels during most of 1972. "In 1972," states Mr. Mathis, "prices for milk used in bottling (Class I) will continue to depend on policies established in Federal order markets, which price about of Grade A milk, and on the ability of fluid milk ccxiperatives to maintain above Class Fremium pricesFederal order in markets." Utilization of Dairy Foods Dairy sales in 1971 were 109 billion pounds milk WE HAVE MANY BIG VATS TO FILL WITH PURE, SWEET, FRESH CHEESE MILK SEVERAL TIMES A DAY. two-thir- equivalent, slightly below the 109.2 billion in 1970. This decline may be attributed to rising retail prices, relatively THEREFORE WHY NOT high unemployment, and competition from other foods for homemakers dollars. Competition from milk substitutes diminished and sales of .cheese and lowfat fluid milk rose, but not enough to overcome declines in sales of butter, whole milk, cream and evaporated milk. In 1971, domestic per capita civilian consumption of milk in all dairy products was 557 pounds, down slightly from the 562 pounds in 1970. A similar small loss in per capita consumption may be expected in 1972. larger farm marketings of milk in 1971 forced USDA to remove larger quantities of dairy products from the market, through the price support and related pro- grams. Removals were equivalent to 7.3 billion txiunas of (Continued on Page 9) MAKE YOUR DAIRY FARM PAY THE CACHE VA MEMBERSHIP IN THE CACHE VALLEY DAIRY AS IS ONE OF YOUR MOST IMPORTANT FARM FOR MORE INFORMATION CONTACT T CACHE VALLE SMITHFIELD, UTAH |