Economic and Marketing Information for Indiana Farmers (Apr. 30, 1971) |
Previous | 1 of 4 | Next |
|
|
Loading content ...
Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana April 30, 1971 DURING THE 1960'S DAIRY cooperatives in Indiana and throughout the Central United States undertook a new experiment in bargaining. This experiment evolved in two stages as milk producers sought new methods of improving their economic position. First, was the rise of large-scale federations of dairy cooperatives during the early to mid- 1960's. Second, was a sequence of consolidations, mergers, and acquisitions resulting in the organization of multi-market regional cooperatives. Historically the price of milk had been determined to a large extent by the federal milk marketing order and price support programs. The negotiation of premiums over federal order prices was limited by surplus milk production, increased intermarket milk movements, and competition among cooperatives for premium fluid-use milk outlets. Federations Two large federated cooperatives—Great Lakes- Southern Milk Marketing Federation and Associated Dairymen—were formed during the early 1960's. Both federations grew to the extent that their operational areas as of 1970 stretched from the Canadian border to the Gulf of Mexico. In 1970, Great Lakes-Southern member cooperative handled 13.2 billion pounds of milk produced by 34,000 member-producers. Cooperatives belonging to Great Lakes-Southern with producers located in Indiana include: Milk Incorporated, Wayne Co-op, Cincinnati Milk Sales, Miami Valley Milk Producers, Michigan Milk Producers, Dairymen, Inc., Cooperative Pure Milk Association, and Con- stantine Cooperative Creamery. Associated Dairymen cooperatives handled 20 billion pounds of milk produced by 50,000 member-producers. Associated Milk Producers, Inc. (AMPI) which includes both the former Pure Milk Association serving the Chicago market and Central Indiana Dairymen serving the Indianapolis market is the largest cooperative in Associated Dairymen. Associated Dairymen and Great Lakes-Southern cooperatives handled nearly 30 per cent of the total U.S. milk production and over 70 per cent of the Grade A milk produced in their respective areas. The main function of these federations has been to coordinate the activities of their member cooperatives so that the members could obain higher levels of milk prices and a more stable milk market. Mergers Discussion among cooperative managers and producers of common problems and experience in federations led to the realization that many of the milk marketing and pricing problems facing dairy farmers could not be solved in a loose-knit federation. Thus the federation movement led to an extensive merger movement in the latter half of the 1960's. The magnitude of the merger movement is indicated by the fact that from 1967 to 1970, more than 170 local cooperatives handling 26 billion pounds of milk for 70,000 producers, were combined into four large multi-market cooperatives located in the Central United States. The largest cooperative, Associated Milk Producers Incorporated (AMPI), serves 27 federal milk marketing orders and covers a 10- state area including all or parts of Texas, New Mexico, Oklahoma, Kansas, Arkansas, Indiana, Illinois, Wisconsin, Minnesota, and Iowa. AMPI handled nearly 11 billion pounds of milk for 31,000 producers. Central Indiana Dairymen and Pure Milk Association were two cooperatives with producers located in Indiana which were consolidated into AMPI. Mid-America Dairymen, Inc. in the Iowa, Missouri, Kansas, Nebraska, and Minnesota area handles 7.5 billion pounds of milk for 23.000 producers. Dairymen, Inc., in the Southeast 10-state area, handles 5 billion pounds of milk for 10,000 producers in 12 federal order markets. Kyana Milk Producers which served suppliers in Southern In- *Ronald D. Knutson is an associate professor and Larry Jones is a graduate research assistant in the Department of Agricultural Economics at Purdue University.
Object Description
Title | Economic and Marketing Information for Indiana Farmers (Apr. 30, 1971) |
Purdue Identification Number | UA14-13-econ197104 |
Date of Original | 1971 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 05/04/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ197104.tif |
Description
Title | Economic and Marketing Information for Indiana Farmers (Apr. 30, 1971) |
Purdue Identification Number | UA14-13-econ197104 |
Transcript | Economic and Marketing Information FOR INDIANA FARMERS Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana April 30, 1971 DURING THE 1960'S DAIRY cooperatives in Indiana and throughout the Central United States undertook a new experiment in bargaining. This experiment evolved in two stages as milk producers sought new methods of improving their economic position. First, was the rise of large-scale federations of dairy cooperatives during the early to mid- 1960's. Second, was a sequence of consolidations, mergers, and acquisitions resulting in the organization of multi-market regional cooperatives. Historically the price of milk had been determined to a large extent by the federal milk marketing order and price support programs. The negotiation of premiums over federal order prices was limited by surplus milk production, increased intermarket milk movements, and competition among cooperatives for premium fluid-use milk outlets. Federations Two large federated cooperatives—Great Lakes- Southern Milk Marketing Federation and Associated Dairymen—were formed during the early 1960's. Both federations grew to the extent that their operational areas as of 1970 stretched from the Canadian border to the Gulf of Mexico. In 1970, Great Lakes-Southern member cooperative handled 13.2 billion pounds of milk produced by 34,000 member-producers. Cooperatives belonging to Great Lakes-Southern with producers located in Indiana include: Milk Incorporated, Wayne Co-op, Cincinnati Milk Sales, Miami Valley Milk Producers, Michigan Milk Producers, Dairymen, Inc., Cooperative Pure Milk Association, and Con- stantine Cooperative Creamery. Associated Dairymen cooperatives handled 20 billion pounds of milk produced by 50,000 member-producers. Associated Milk Producers, Inc. (AMPI) which includes both the former Pure Milk Association serving the Chicago market and Central Indiana Dairymen serving the Indianapolis market is the largest cooperative in Associated Dairymen. Associated Dairymen and Great Lakes-Southern cooperatives handled nearly 30 per cent of the total U.S. milk production and over 70 per cent of the Grade A milk produced in their respective areas. The main function of these federations has been to coordinate the activities of their member cooperatives so that the members could obain higher levels of milk prices and a more stable milk market. Mergers Discussion among cooperative managers and producers of common problems and experience in federations led to the realization that many of the milk marketing and pricing problems facing dairy farmers could not be solved in a loose-knit federation. Thus the federation movement led to an extensive merger movement in the latter half of the 1960's. The magnitude of the merger movement is indicated by the fact that from 1967 to 1970, more than 170 local cooperatives handling 26 billion pounds of milk for 70,000 producers, were combined into four large multi-market cooperatives located in the Central United States. The largest cooperative, Associated Milk Producers Incorporated (AMPI), serves 27 federal milk marketing orders and covers a 10- state area including all or parts of Texas, New Mexico, Oklahoma, Kansas, Arkansas, Indiana, Illinois, Wisconsin, Minnesota, and Iowa. AMPI handled nearly 11 billion pounds of milk for 31,000 producers. Central Indiana Dairymen and Pure Milk Association were two cooperatives with producers located in Indiana which were consolidated into AMPI. Mid-America Dairymen, Inc. in the Iowa, Missouri, Kansas, Nebraska, and Minnesota area handles 7.5 billion pounds of milk for 23.000 producers. Dairymen, Inc., in the Southeast 10-state area, handles 5 billion pounds of milk for 10,000 producers in 12 federal order markets. Kyana Milk Producers which served suppliers in Southern In- *Ronald D. Knutson is an associate professor and Larry Jones is a graduate research assistant in the Department of Agricultural Economics at Purdue University. |
Tags
Add tags for Economic and Marketing Information for Indiana Farmers (Apr. 30, 1971)
Comments
Post a Comment for Economic and Marketing Information for Indiana Farmers (Apr. 30, 1971)