New-York tribune., 1920-03-26
Dairymen'sL League Comes
to Agreement With Dis
tributors Which Is Ex-
pected to Aid Consumer
Companies to Take
Entire Production
Farmers to Sell Product
at /. 7Cents Under Price
Received for March

the retail price of milk beginning April
l is forecast in an agreement entered
into last night between the producers
and the distributors. The farmers
agree to sell milk to the distributors
at an average reduction of IL cents
quart. Under general rule to extend
the reduction to the consumer it is ex-
pected that the handlers to-day will
reduce by two cents the present 16
and II cent rate for Grade B milk
Proportionate cuts in other grades also
are expected.
Inc agreement was announced by the
Milk Conference Boar1, which has been
in. session at the office Of the Dairy
mems League, 303 Fifth Avenue, Sor
more than week. The failure Of the
board to act last week led to reports
that it was deadlocked. Health Com
missioner Copeland predicted that the
board would cut off the city's milk
supply.
Farmers Do Better This Year
The reduction in the amount to be
paid to the farmers is said to be much
less than was made at the same time
last year.
Evidence Of warm contest between
the farmers and the distributors over
prices was given in a statement issued
by R. D. Cooper, president of the
Dairymen's League, after the agree
ment had been reached. The statement
said:
"The producers price for April milk
will be $2.55 per 100 pounds for milk
testing per cent butter fat, decrease
OF 81 cents from the March or present
price.
Buyers Of milk will pay farmers
at the rate of 5.4 cents per quart for
3 per cent milk and SO cents per
quart of milk containing 36 per cent
butter fat.
-Four cents per 100 pounds of milk
are added for each one-tenth of / per
cent increase of butter fat over 3 per
cent.
Producers now are getting IL cents
per quart for per cent milk and 7.65
cents for 3.6 per cent milk.
"The farmer will receive in April
ceiving this month. He will get half
cent per quart less than he received
in April, 1919.
Buyers to Take Whole Output
"Buyers will take all the milk of
producers with whom contracts are
made.
"The buyers insisted upon a radical
revision of the price plan in use dur
ing the last year. In this plan prices
are based in the main upon the whole
sale prices of butter and cheese. Under
the proposed revision the dealers
offered the farmers $2.48 for SO per
cent milk, or at the rate of 1924 for
per cent milk.
"The executive committee of the
league declined to agree to the revi-
sion, as proposed, as it brought the
price far below the cost Of production,
with all the advantages In favor of the
dealers.
"Without any revision in the present
sale plan, the producers price would
have been about $2.97 per 100 pounds.
The leagues representatives agreed to
certain revisions which resulted in a
! price Of $2.67 and offered to sell league
milk at this price. This concession was
made in view of conditions in the milk
manufacturing market due to the stop
ping Of exports of milk products.
Farmers Oppose Production Cut
'It was suggested to the league by
the dealers that farmers should use
less feeds and reduce the amount Of
milk produced, thus decreasing the
natural surplus in times Of an abun-
dant flow of milk. The league officers
declared their unalterable opposition to
such a proposition, arguing that, first
it would work to the disadvantage Of
the public, and, secondly, that if a
cows flow of milk is once reduced the
full flow can newer be brought back.
Farmers in the country insisted that
they must have higher price than the
dealers offered, and the executive COM
mittee constantly put forth its best en-
deavors to prevent situation that
might result in rupture of business
relations. At no time during the hego-
tiations were the officers of the league
in favor Of a so-called milk strike.
"The league officers regret attempts
on the part of DR.. Copeland to inf1ame
consumers against farmers by declar-
ing that the public was threatened with
a milk strike,