The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1934-11-08
Says Winter Butter
Outlook Not Bright
Feed Grains Crop is Smallest In
Many Years and Very Short
Hay Crop

Butter prices through March are
likely to be three to five cents
above the average fol last winter,
but feed grain prices will be much
higher so that the dairyman's out
look for profits are less favorable
than for several years. That is how
the dairy situation looks to DR.. W.
c. Waits, market price specialist of
the Agricultural Economics Divis-
ion, University Farm, st. Paul. DR..
Waits recently spent several weeks
at Washington, D. c., where he had
an opportunity to study dairy con-
ditions closely.
"It is evident" DR.. Waite points
available for distribution in the reg
ular comm ercial channels will be
less this winter than a year ago.
Storage holdings of butter were S.
100000 pounds less on September 1
than on the same date last year,
while production this winter prom
Uses to be smaller than during the
winter of 1933-34. The feed grains
crop in the smallest in many years
and there is very short hay crop.
Conditions are especially unfavor-
able in the western plains areas.
Prices of feed grains are high and
feeding ratios are less favorable
than for many years.
Ut is uncertain, however, just
how much smaller commercial sup
plies will be. No definite statement
~ rat nd in
chases for relief during the coming
winter. In 1888 the government
purchased 100000 pounds of but
ter for relief. However, this years
decrease in storage stocks exceeds
last years government purchases,
so that supplies would be less than
last winter even without govern
ment purchases.
"The extent to which shortage of
feed will reduce dairy production
may easily be overestimated,"
warns DIR. Waite. Although but
terfat prices are low relative to
feed grains, they are high relative
to meat animals. However, it US
ually happens that short feed sup
plies affect other animal enterpris-
es much more than they affect
dairying. What the situation will
be in an unusual year such as this
is difficult to foresee. However, it
does not seem probabale that COM
mercial supplies of butter during
the winter will drop much more
than ten per cent from last year.
Consumers this winter will not
have a great deal more to spend on
butter than a year ago. Factory
pay rolls are likely to be somewhat
larger this winter than last, but the
cost of living, particularly the
price of food of city workers, has
risen rapidly. In the past, consum-
er expenditures for butter have ris-
en- and fallen in almost the same
proportion as their incomes. Under
these circumstances, one might ex-
pect, say, a five per cent larger ex-
penditure for butter than last year.
with fewer pounds of butter to,
be sold and probable larger con-
sumner expenditures, higher prices
are to be expected than last winter.
The average price of 90 score but
ter in New York City for the six
month period, October 1888 to
March 1884, inclusive, was 23.1
cents. Barring unforeseen develop
ments, present indications place the
best estimate for this year at prices
Is to 20 per cent above those of a
year ago. This would mean an av-
erage of from 26k to % cents for
90 score butter in New York for
the period from October to March,
with some months averaging a few
cents more. Such prices are evil
IDENTIFY not sufficiently high to pro-
duce favorable feeding ratios as
long as grain prices remain at the
present levels" DR.. Waite con-
cludes.
With the feed situation as it is