The midland journal. (Rising Sun, Md.) 1885-1947, 1926-02-12
MARYLAND DAIRYMEN NEED
NOT FEAR COMPETITION
FROM WEST

The western farmer can never
successfully compete with the east
ern dairy farmer in the sale of milk
in the eastern territory.
Freight rates will always form a
natural barrier to any big movement
of milk from one section of the
United States to another.
These are the twin contentious of
Charles Staff, executive secretary of
the Larrowe Institute OF Animal
Economics, in heartening state
ment to the dairy farmers of this
section. The statement is intended
to counterfeit the pessimism current
on the Atlantic sea-board as re-
suit of the proposed erection of 6
huge pasteurizing plant at New
ark, N. j., by the Sheffield Farms
Company.
There is nothing to justify the
dark pessimism that prevails among
the large number of eastern dair..
farmers as a result of the opening
of this new plant" says Mr.. Staff in
his statement. Certain dairymen
see in the coming of this plant
development for securing milk out,
side the metropolitan area with
view of breaking the hold which the
eastern producer has on his natural
outlet. The publication by rail
roads of freight rate on milk from
Chicago is also cited as evidence OF
the movement by those who fear
that the difference in the cost OF
production between the two sections
is represented by the difference in the
freight rate and that the price Level
of the eastern producer will be
brought down to the Middle West
price level. Let us study the situa-
ton little more carefully.
What is the difference in the
cost Of production in the Middle
West and in the East =? Feed is
big factor. The freight rate from
Chicago to New York on feed in
carload lots is approximately 35
cents per cwt. A hundred pounds OF
feed is needed to produce 800 lbs.
of milk; consequently the freight
rate on the feed necessary to pro
duce 100 pounds OF milk is not over
~ cents. Deducting this from the
freight rate of $1.14 per cwt. OF
milk leaves a comfortable margin OF
s1.O2 per cwt. of milk for other ex-
penses. The hay and silage are
produced on the farm; farm land is
cheaper in Maryland than it is ir
the Middle West, and these rough
ages can be produced as cheaply ii
not cheaper than in the Middle
West; labor is no higher in Mary
land than it is in Michigan, Indiana
and Illinois; cows can be purchased
or raised as cheaply in Maryland az
in the Middle West. A difference OF
purchasing feed represents the entire
difference in the cost of production
in the Middle West and the heart OF
The eastern milk area. Besides a
survey OF milk prices in the East
and West discloses that in many sec
lions the eastern dairy FARMER is
getting less money for his milk than
is the western farmer"
Good will is another factor that
speaks against the possibility of
bringing in milk from the Middle
West by the Sheffield people, Mr..
Staff says. "Dairymen frequently
forget the high value that distrib-
utors place on the good will OF
their near producers. Theoretic-
ally. it might be possible for dis
tributor to scour the country and
pick up cheap milk but it is not
practical Milk distributors want q
nearby and dependable supply and
are generally willing to pay fair
price. They don't shop around and
buy milk one week one place
and the next somewhere else. 1t is
absolutely necessary for them to
have a reasonable assurance of the
source of their milk supply from
month to month. and they are not
likely to depend on the uncertain
supply of producers hundreds OF
miles away"