OCR Text |
Show SHARE IT WITH THE FARMER Declining milk prices have become be-come an increasingly serious problem prob-lem to American dairy farmers. The price declines, of themselves, do not necessarily menace the farmers' far-mers' economic standards. The fault lies in the fact that farmers have been forced to take all of the loss. When milk sold at 10 cents a quart, the distributor received 6.5 cents. With milk selling at 11 cents or less, the dealer still has his 6.5 cent margin, the farmer absorbing the loss. The farmer cannot continue to bear the price cuts alone. Reductions Reduc-tions in milk prices are a natural part of the drop iu commodity prices of all kinds but now the dealer must help lear the burden. He must follow Ve example of the farmer, who has raised his efficiency effic-iency aud reduced his operating costs to adjust himself to changed conditions. Out of the 6.5 cent dealer margin about one-half cent is profit, and about three cents goes for driver and wagon expense. It Is not probable prob-able that these Items can be appreciably ap-preciably reduced. The cut must come out of the other three cents which goes to overhead. Dealers and farmers must work together iu living through the present period per-iod of low price levels. Each is necessary ne-cessary to the dairy industry and their difficulties must be shared In common. |