The Ordway new era., 1918-04-19
THE CONDENSED
MILK SITUATION

Following is an article from the
New York Review and American
Creamery which gives good light on
the milk situation:
The condensery milk industry of
the United States. which has been
growing very rapidly since the
early days of the war. and which for
some months past has been sweeping
aside all competing dairy plants
wherever encountered in it's progress,
has suddenly been confronted with
serious dilemma. The export de-
mand for the finished product is still
enormous, large enough in fact to
readily care for the enormous in
crease in output made possible by the
erection of new plants. But 1t now
appears that no adequate ocean ton
mage is available to carry our increas-
ed production to those requiring it
abroad. This shipping shortage was
not expected to cause trouble at so
early date by large number of
manufacturers, who reasoned that
since condensed milk is largely used
by the armies abroad, freight space
would be provided for it somehow
Consequently many were not prepar-
ed for the announcement, appearing
| in our last issue that the British
government had reduced the monthly
tonnage allowed to condensed milk
from $4,000 to 5000 tons a month
The effect of this new ruling will
be serious, especially so for the small
er manufacturer OF condensed milk
who is not able to finance a heavy
reserve and to pile up stocks in stor
age during the approaching season
of flush production. A continuance
of this shipping shortage during the
| spring and summer will force the
smaller operators out of business and
throw the industry again into the
hands of a few large operators able
to carry the load, unless some steps
are promptly taken to finance the
carriage of the surplus by the small
er manufacturers. Some efforts have
already been made by the Food Ad-
ministration to increase domestic con
sumption and lessen the rate of accu-
mutation of reserve. but it is doubt
full that this will bring enough re-
lief or bring relief promptly enough
to preserve the industry at its pres
ent proportions.
Appeals from condensers in all
sections are now being made at Wash
ington. Plants in the Willamette
Valley Oregon. have made a strong
plea to their representatives in Con-
gress that something be done prompt
ly by the government to help. They
ask that the government either make
arrangements to buy up the reserve
stocks or that some way be devised
of moving these stocks promptly.
Many of these western plants have
reserves on hand, held back by the
winter transportation shortage, and
they face the coming flush with con-
sternation.
The Canadian condenseries are lit
tie better off than those in this coun-
try. Last year they had things their
own way-an uncontrolled market,
while the cheese manufacturers were
tied down with a fixed price. But It
is now announced that the British
government will no longer permit
this inequality and will extend its
price control to condensed milk,
keeping the price at a balance with
cheese.
Thus the condensed milk boom has
broken, the break coming much SOON
er than many had anticipated. And
the cheese and butter manufacturers
who have watched the spread of the
condenseries are cutting prices and
the nervous haste with which new
plants were erected wherever there
was promise of enough milk to sup
port them has already disappeared.
And 1t looks as If the ultimate result
of this collapse of the condensed milk
market will mean a heavier make of
both butter and cheese than most op-
orators had looked for this spring
A number of condenseries have al
ready closed and the milk is again
being diverted to the outlets pre-
viously patronized.