Cross Timbers Business Report, Volume 13, Number 4, Summer 2000 Page: 3
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June Milk Production Increases in Texas for the
Second Consecutive Year.
By Nancy StewartTexas dairies produced 467 million pounds of milk
in June 2000 according to the July 2000 Milk Market
Administrator's Report. This number represents an in-
crease of 2 percent from 1999 levels and an increase of
almost 10 percent over June 1998 levels. Erath and Co-
manche Counties showed gains, while production in
Hamilton County declined compared with June levels
from the previous two years. Prices for Class I milk have
move steadily upward following the Federal Milk Market
Order Reforms that took effect in January.MILK PRODUCTION
Area Counties, January - June
Millions of Pounds1000
800
600
400200
Erath Comanche
Source: Market Administrators Report1996 01989 u2oo
-.. . . . ... - . ... . . . .. . . .. . .Hamilton
level of 19. 13.2 million pounds of milk, accounting for
1.7 percent of the June Texas total, are reported for Ham-
ilton County. This represents a 23.3 percent and 14.7
percent decline in production from June 1999 and 1998
levels respectively. Hamilton slipped from the number 6
producer in the state in June 1999 to number 8 this June.
Total production for the county declined in 2000, but the
average pounds of milk pre producer increased 40 per-
cent over county producer averages from last June.
The Consolidated Appropriations Act 2000 (reformed
the Federal Milk Market Order program) took effect on
January 1, 2000. The goal of this restructuring is to
make the program more consistent with a market-
oriented approach to pricing while still retaining the ba-
sic purpose of providing a stable market for the producer.
The act consolidated the 31 US milk market order areas
into 11. It also mandated a location specific pricing dif-
ferential for Class I (drinking) milk and initiated mini-
mums on the price. The Class I milk price has moved
steadily upward over the first half of this year. The
Southwest Milk Market Order price for class I milk in-
creased from $13.71 per hundredweight in January to
$14.70 in June.
Nancy Stewart is a Senior Economic Major at Tarleton
State University.Erath County reports indicate the number of producers
declined from 147 in June 1999 to 145 in June 2000. As
the top ranked producer in Texas, Erath County produced
124.5 million pounds of milk or 13.2 percent of the June
total for Texas. This figure is 5.5 percent above 1999
levels and 13.6 percent over the 1998 levels for the same
month. January through June totals for Erath County are
6 percent over 1999 and 12 percent over 1998 levels.
The 48 producers in Comanche County provided 4.4
percent of the Texas June total with 43.6 million pounds
of milk produced. This is 11 percent more than the June
levels reported in 1999 and 31 percent more than 1998
levels for the county. Mid year cumulative totals are 18
percent over 1999 and 30 percent over 1998 levels. Co-
manche County continues to be the third ranked milk-
producing county in the state.
Hamilton County saw the number of produces fall by 7
over the past year from 26 in June 1999 to the presentCLASS I MILK PRICES
Received by Southwest Area Farmers
Dollars per hundredweight16
15
14
13
12
11
10
JanFeb Mar Apr May Jun
2000
Source: Market Administrators ReportThe Cross Timbers Business Report (http://www.tarleton.edu/~econ/ctbr.pdf) is presented as a service to area residents by
Tarleton State University and Tarleton's chapter of Students in Free Enterprise (SIFE). This report is distributed without
charge to any interested person or organization. To subscribe to this publication or make suggestions regarding its content
write William L. Beaty, SIFE Advisor, Box T-170, Tarleton Station, TX 76402, phone 254-968-9622, or email
beaty@tarleton.edu. Nancy Stewart, a senior Economic major at Tarleton State University serves as student editor.II
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Tarleton State University. Students in Free Enterprise. Cross Timbers Business Report, Volume 13, Number 4, Summer 2000, periodical, Summer 2000; Stephenville, Texas. (https://texashistory.unt.edu/ark:/67531/metapth298221/m1/3/: accessed May 6, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Tarleton State University.