Imperial Valley press., 1936-10-01
FARM INCOME
ON EVAPORATED
MILK INCREASES

Total payments to producers for
milk used in the manufacture of
evaporated milk increased 70 per
cent from 1882 to 1885 while prices
received by farmers per hundred
pounds of milk for this use i'm
proved 50 per cent. according to
the dairy section of the Agrieul-
tural Adjustment administration.
The increase in farm prices of
milk purchased by evaporated milk
plants and in consumption of evap-
Grated milk in recent years has re-
suited from a variety of causes the
Dairy Section explained. Among
these are improvement in business
conditions and the droughts in 1884
and 1886. The evaporated milk in
dustry has been operating under a
marketing agreement and license
since September 8, 1888, and under
marketing agreement and license
since May 81, 1885.
Producers of milk who supply
evaporating plants in at least "a
states have been directly benefited
under the provisions of the agree
ment. These states are: Wisconsin.
Illinois, Indiana, Iowa, Minnesota,
Michigan, Ohio California, Kansas,
New York. Pennsylvania, Missouri,
Alabama, Kentucky. Maryland, Mis-
sissippi, Tennessee. Texas, Colorado,
Virginia, Idaho, Utah, Oregon, and
Washington.
The marketing agreement pro-
gram now in effect provides for
fair-trade practices and for mini
mum prices to producers computed
on the basis of butter and cheese
prices. The provisions have tend
ed to keep farm prices of milk de-
livered at condenseries in line with
prices of milk for other uses.
Payments to farmers for milk us
ed in the manufacture of evaporat
ed milk in 1885 were estimated al
S55 100000, compared with S45,200,
600 in 1884, and $32 100000 in 1892
These estimates indicate an in
crease of 70 per cent from 1882 tt
1885 and % per cent from 1884 tt
1895. In terms of purchasing pow
er the income of farmers from mill
sold to condenseries in 1885 wa
only per cent below the 1925
level and was above that of any
other year.
The increase in payments tt
farmers for milk used in the manu-
facture of evaporated milk has re
suited from both an increase il
tvolume of milk used and in thu
prices paid producers. For a con.
siderable number of years there ha'
been a rather consistent upward
trend in the amount of evaporatee
milk consumed. This upward trano
continued during the depression
but has been responsible for only
small part of the increase in pay
ments to producers since 1882. II
1885, the volume of milk used il
this industry was only 27 per cen
greater than in 1884 and II PEI
cent greater than in 1882.
Most of the increase in payments
to producers since 1882 has result
ed from an increase in prices. II
1885 farmers received S1.35 PEI
hndredweight for milk Used IL
the manufacture of evaporated mill
compared with 81. IA in 1884. 98 cent
in 1888, and SO cents in 1882. TIL;
increase in prices received by farm
ers of such milk from 1882 to 1873
amounted to So pc rcent, and l;
pc rcent from 1884 to 1895.
Farm prices of milk delivered a
condenseries during the last 3 year
have also been high relative Il
wholesale prices of evaporated mill
per case. From 1882 to 1885 th
average annual price of evaporatec
milk per case increased from S23
to $2.73-an increase Of 3S cent
per case, or Is per cent. Durin'
the same period, farm prices O
milk delivered at condenseries ir
creased from 80 cents to $l.35 pc
hundredweight.
This years drought is having al
important influence on the evap
Grated milk industry. A large pro
portion OF the evaporated-and con
densed-milk plants are located il
Wisconsin, where pasture and feeC
supplies have been reduced by tbs
drought. In order to obtain thf
milk needed, evaporated-milk pant
have had to pay farmers highe,
prices.
In July 1886 condenseries were
paying farmers an average price o
$163 per hundredweight compared
with an average of S1.35 per hun
dredweight during 1885 and $40
Ger hundredweight. in 1929. Thu
July price, although considerabl,
above 1885, is still about 20 pc
cent below the 1929 level in term
of dollars. In terms of the price
of things purchased by farmers
however, it is only about per cen
below the 1929 level.