Show Study Committee received testimony on the importance of protecting dairy farmers Everyone in Utah is in agreement on this SAFEWAY ADVISES PROTECTION FOR UTAH'S DAIRY FARMERS COULD It is Safeway’s policy (published and in evidence to the comto pay daily farmers top market prices for milk plus quality bonuses This policy has never been violated mittee?) point ANY MILK LAW COST YOU MONEY? Testimony was also given the committee to show that retail price of milk has been "fixed” by law it has set too high — in order to protect inefficient been inevitably marginal middlemen YES! where the However Safeway’s policy protects only the dairy farmers selling to Safeway Other milk bottlers and retailers may not have the same policy — - or may not keep to it as strictly as Jafeway does Mr Sverre M Omdahl Director of the Department of Agriculture of the State of Washington (himself a dairy farmer) gave the producer must receive a fair price similar testimony: " or he will shortly be forced out of business but by the same token I have always objected to the states setting a price (retail price) which would tend to favor inefficiency” That's why It Is also Saleway s policy (published and In evidence) to work for laws or regulations to protect the price all dalryfarmers get for their milk If the price you pay for milk Is "fixed" it could prevent ' Safeway and other efficient retailers from passing the savings of their efficiency on to you ARE THERE ANY SUCH LAWS OR REGULATIONS AT PRESENT? For example: At Safeway you buy milk in paper cartons pay cash for it and carry it home yourself Safeway saves money not making not by handling empty bottles on their return hundreds of expensive home deliveries not keeping credit accounts and having no credit losses There is one on the books in Utah right now It is Clans "Milk and Cream Marketing Act” This law is patterned after a It provides California Iiw which has been held constitutional the power to set minimums on the prices paid dairy farmers for milk — and makes payments below the minimums illegal If invoked this law would give Utah’s dairy farmers the protection they need Other ways to protect Utah’s dairy farmers also are available A Federal Milk Marketing Order is one 58 federal orders and agreements are now in effect and 10 more are being considered by the Secretary of Agriculture' These foleral orders and agreements also set minimums below which price? paid dairy farmers may not go Today over half of the fluid milk consumed in the United States is marketed under milk price stabilization programs which protea producer prices only leaving free and fair competition so prevail at consumer levels This includes the 58 federal order markets and 5 state pricing programs savings — you help earn thcr-A- nd from Safeway and other retailers only so long Such competition for your business compete will mean that you can buy more milk And Utah dairy farmers will sell more milk are entided to these You you get them as they are free to (j werks d:Hy with ikeuserds of Utckas SAFEVJA Y 885 Safeway Utah ewpioyees and salaries m 1954 171 Claims Safeway ewa 16863 purchased the received shares $354187637 af stack in Safeway feSawiey Utah Nwlimi ad for products Im wages Stares m 1954 mr Pvrctw DO SUCH LAWS WORK? Mr Stuart Russell who represents some 30 milk producer cooperatives throughout the United States testified: "I do not know of any major price war that has occurred in any of the areas where federal milk marketing orders and agreements are in full force and effea Nor do I know of any in states which have effeaive state milk control commission laws that control prices at the producer level” Mr Russell also explained why these laws work: "The reason is very simple: If distributors cannot pass the cost of the price war back to the producers they will not wage a prolonged retail price war” No testimony to the contrary was presented to the committee WOULD ” NO! PROTECTION PRODUCER ENFORCING ' C0ST YOU MONEY? g&vav The committee heard experienced testimony that WHY fed- eral milk marketing laws do not increase the price you pay for milk — in fact the Milk Study Committee itself found that ” such cost is so minimal as not to affect the price of milk on the retail level The federal order does not set resale prices and the evidence indicates it does not materially affect said prices” A state law could be just as inexpensive SAFEWAY IS PUBLISHING THIS STATEMENT Safeway was born in neighboring Idaho We have a big g stoke in Utah and a citizen's concern for Utah's 0 We ployees testimony believe we have a responsibility to the public our emsuppliers and stockholders to publish the record of our to the Milk Study Committee Watch for these reports in this newspaper |