| Show Faun Farm Families by by Morris l E. E Reid Se See SeC r. r Benson made it very clear the other evening as he spoke to a large large Franklin Franklin county audience audience audience audi audi- ence in It Idaho Idabo that It was his legal responsibility t to set the price support of dairy dalry products at a level between 75 per cent and 90 per cent of parity that would insure an adequate supply both in and out of the dept have plainly stated that there is enough dairy products on hand to safely set the support at the minimum level of 73 per cent Much hoo Early There has been much bally batly- ballyhoo ho hoo raised against the Secretary for lowering the support the first of April by disgruntled politic politic- ians fans and misinformed Individuals that Mr Benson wants ants to set the then n record cord straight on that one point It was th the Agriculture act of 1949 th that t required the Secretary whoever he may be to set the el le at such o Q per cent between n 75 and DO 90 as to as assure re an adequate adequate ade ade- quate supply of dairy products And Mr Dairyman your Dairyman our product I Is adequate according to w the C CC and the bl bl com com- As of last Jan 29 there was a surplus of 40 million Ibs of million Ibs lbs of non nonfat non fat dry milk and million Ibs lbs of cheese With this assurance Sec SC Benson had no other choice but butto butto butto to put the price le el at 75 73 per percent percent percent cent of parity We Ve can be sure that more more dairy products are to be I production In abundant quantities In the future We must learn I how to live with this abundance I And with Ith such abundance we ue weI I should not expect to price that commodity as If It were scarce Dairy products like other farm products should be priced at a J competitive price price price-price price wise qu quality wise and promotion wise AND A GOVERNMENT WAREHOUSE WAREHOUSE WARE WARE- HOUSE is NOT A MARKET We cannot build a B. market by pricing ourselves out of It High prices stimulate high production High production and less consumption means surplus and surplus Is the serpent that thatIs Is biting at the farmers heels right now I It Is Interesting to note that before the price support level was lowered the lowered the big retail outlets were cutting their prices on some dairy products This will help stimulate sales Butter was reported to have gone down 3 cents a lb cheese 2 cents and fluid milk 16 14 6 to 1 cent a quart below previous prices Lower prices to consumers will result In a broader market Our nutritionists say that in the country today our people nee need actually 9 per cent more fluid flud milk than they now consume This Is almost twice as much a as IU the government has been buying as surplus Its It's a pity that amere a amere mere 5 per cent surplus Is caus cans causing ing tag the dairymen such a headache head ache D Dairy Consumption The only solution is to increase consumption You dont don't solve obe that problem by increasing the thA price especially when the demand d for the product is Inelastic Lowering the price to the tle consumer consumer consumer con con- sumer need not mean lowering the price to the producer J A broader market would mean a II greater demand for the product t and increased demand would mean a better price for the grad gradE C milk that the dairy farmer r would receive because of it being consumed by the people Instead of stored by the government For the dairyman Its daIryman Its It's CON CON- CONI CONSUMPTION I that brings success not storage I |
