Saturday, June 27, 1998

Claims of butterfat shortage just a ploy to bring in imports

By J.T. Smith / Abilene Reporter-News

Claims of "a shortage of butterfat" and predictions of sharp increases in the prices of butter, ice cream and other dairy products appear to be nothing more than a ploy to put pressure on USDA to increase its import quota.

Wes Sims, a Sweetwater dairyman and Texas Farmers Union president, isn't buying claims of a butterfat shortage.

"As dairy producers receive the lowest prices in 18 years -- ostensibly due tto an oversupply of milk -- it is inconceivalbe that there is a shortage of butterfat," Sims said. "Dairy processors are using the threat of higher prices to get USDA to raise its quota on butterfat imports in order to have a greater availability of cheaper, subsidized butterfat from foreign countries."

USDA several weeks ago denied the dairy processing industry's request to raise the U.S. annual dairy import quota by 40 million pounds. Amid the industry's claims of a butterfat shortage, U.S. milk production increased 3.5 percent last year.

Sims said dairy farmers currently are getting $10.88 per hundredweight, or 94 cents per gallon, for their milk.

Between March and May this year, milk prices paid to dairy producers dropped 28-1/2 cents per gallon. Yet, retail prices have remained constant.

"Dairy farmers are losing money, while consumers are being gouged," Sims said.

Sims said it makes no sense.

"There's no excuse for price increases of milk and other dairy products at the retail level, given the price farmers are being paid," Sims said. "If farm prices go up, retail prices go up much more. But when farm prices fall, there never seems to be a drop at the grocery counter."

<B>Hereford tour draws enthusiastic group<B>

Some rain (yes, rain) and a cooler day made for a great Hereford Tour sponsored by the Greater Hill Country Hereford Association (GHCHA) earlier this month.

The host ranches were the D-Bar Hereford Ranch at Melvin and the Jimmy L. Powell Ranches at Fort McKavett.

About 50 purebred Hereford cattle were displayed at D-Bar, and 75 at the Jimmy Powell Ranch. Nine Hereford breeders from the GHCHA exhibited cattle at both host ranches.

Displaying cattle were Fred Case Herefords, El Dorado; Dry Creek Herefords, San Angelo; Granite Hills Ranch, Llano; Honeymoon Herefords, Marble Falls; Krieg Herefords Ranch, Eden; Leon Noack Hereford Ranch, Rockdale and Rocking Chair Ranch, Fort McKavett, plus the two host ranches.

Craig Huffhines, executive vice president of the American Hereford Association, Kansas City, Mo., addressed the 200 attendees and stressed that the breed must get more in tune with the end product.

"A Hereford feedout should be formed in Texas to educate Hereford breeders to the value of their end product," Huffhines said.

He encouraged the breeders to report all of th data from their calf crop.

"Without accurate and complete data of the entire calf crop, the genetic evaluation is less than accurate and creates long-term breed problems," Huffhines said. "You cannot improve what you don't measure."

Huffhines said leaders of the Hereford industry "must encourage and support new breeders who enter into the business."

Those attending ranged from Abilene area ranchers to those of the Texas Panhandle, Big Bend, San Antonio and the Gulf Coast -- to cite a few.

<B>Perry reinstates Hay Hotline on Monday<B>

The Texas Department of Agriculture has set up a Hay Hotline to help connect farmers and ranchers who need hay with those producers who have hay for sale.

The Hay Hotline number is 1-877-429-1998 (1-UPS-HAY-1998). The hotline will be staffed from 8 a.m. until 5 p.m. Monday through Friday and is a free call.

"The Hay Hotline is an opportunity for farmers and ranchers to locate forage during this difficult time," Texas Ag Commissioner Rick Perry said. "The hot, dry weather continues to take its toll on range and pastureland across Texas."

Producers with hay available can call the toll-free number and be put on a list of suppliers.

Farmers and ranchers who need hay can call and request a list of hay suppliers. An up-to-date list will be mailed to them the day they call. In addtion, TDA will put the list of suppliers on its website at <I>www.agr.state.tx.us<I> for those with Internet access.