Show & R ®W o Milk is of major importance to the whole State of Uttth Some 2000 dairy farmers who produce grade A mSxket milk — including all that Safeway sells — are vitally interested in the prices they receive for their milk The 757000 consumers of Utah are just as vitally interested in the price of milk for there is no substitute — particularly in a child’s diet For the past eight weeks (during the first "milk pricing truce” requested by Governor Lee) a committee appointed by the Utah Legislative Council has been studying milk costs and prices On June 17 the Milk Study Committee presented its conclusions to the council One of the major conclusions was that the sale of milk in paper cartons for less than a quart should be prohibited Safeway cannot in good conscience allow this conclusion to go unchallenged m SAFEWAY BELIEVES MLK SHOULD BE AVAILABLE TO YOU AT THE LOWEST POSSIBLE PRICE THAT'S WHY SAFEWAY SELLS MILK ONLY FOR As Safeway testified before the committee you pay cash for milk at Safeway — and carry it home yourself — you save the cost of credit accounts and expensive Safeway believes you are entitled to get this saving — you earn it That's why Safeway presented all its cost figures to Utah's Milk Study Committee — to show the combutterfat milk for mittee that Safeway could sell less than the going price and would be able to sell it h for still less in the future and can sell a milk (one that just meets state butterfat content requirements) for an even lower price t Despite these facts the Milk Study Committee has in effect attempted to force a ’’price fixing” agreement among milk bottlers and retailers One council member stated the committee was "just more or less pegging” the price of milk out of stores at 20 cents Such a pegged or fixed price—if continued— -- would prevent Safeway and other efficient organizations from passing their savings on to you — you may ask — what if the price of milk is " fixed " a penny or so too high? But As Safeway also pointed out to the Milk Study Committee — if the price of milk you bay in stores is fixed just one cent per quart too high — it will cost the people of Utah almost $450000 a year — almost half a million dollars AND WHAT CHEAPLY - MILK IS SOLD TOO BELOW COST? IF This too can cost Utahn’s money For this reason it is Safeway's policy never to use milk as a loss leader Safeway will meet its competitors’ prices but has never — and never will — sell milk below cost to attract customers Safeway sells milk as a business — to make money on it As proof Safeway presented its profit figures to the Milk Study Committee In 1954 Lucerne Milk Company of Utah selling to Safeway made a net profit of on its investment —while Safeway $137326 — 2611 selling to its customers made a gross profit of $124223 (For the first 20 weeks in 1955 Lucerne made a profit of $5257508 and Safeway continued to make its normal profit in milk) ' SAFEWAY BELIEVES THAT TO INSURE A GOOD STEADY SUPPLY OF MILK DAIRY FARMERS MUST HAVE FAIR PRICES AND THOSE FAIR PRICES MUST BE CONSTANT AND ' 9 ThaF why it is Safeway's policy (a policy Safeway has never violated) to pay top market ptices for milk — plus a bonus for quality Safeway believes that this is in the public interest-because when the price farmers get for milk is protected bottlers and retailers cannot pass the costs of competi- tive pricing back to the farmer Safeway presented witnesses to the Milk Study Committee — witnesses who testified — from experience — That where the price paid farmers for milk is protected' price wars do not occur However — the Milk Study Committee made no recommendation to protect the price dairy farmers get for milk Safeway Works Daily With and For Thousands of Utahns 885 Safeway Utah employees received $354187637 in wages 171 Utahns own 16863 shares of stock in Safeway Stores Safeway purchased the following Utah products in 1954 Livestock and Meat Products $ Poultry Fruit (fresh canned frozen) Vegetables (fresh and canned) Fruit and Vegetable Juices Dairy Products 1954 485463002 133381700 £ggj Sugar (beet) Bread and Sweet Goods Flour and salaries in - 165294509 6201 9800 71230240 : 17147188 Other Products $1313840559 TOTALS WHY SAFEWAY IS PUBLISHING THIS STATEMENT Safeway was born In neighboring Idaho We have a big stake in Utah and a g citizen's concern for Utah's We believe we have a responsibility to the public our employees suppliers and stockholders to publish the record of our testimony to the Milk Study Committee Watch for these reports in this newspaper |