Evening star., 1942-02-19
Milk Producer
Admits Surplus
Plan HitsFarms
Procedure Helps
To Keep Product
From D. G. Market

tVub Ne 49, fVtdt NGt
The Maryland and Virginia Milk
Producers Association base surplus
plan for production of milk by its
members places a burden on dairy
farmers turning out more than their
base quota of milk, Bruce B. Derrick,
association manager, admitted to-
day at the Federal milk hearing at
the Chamber of Commerce Building.
Questioned by representative Of
the Department of Agriculture
which is hearing testimony on the
associations proposal to raise the
price of milk here, Mr.. Derrick ex-
planned that when a milk producer
goes over his base quota, under the
associations complicated rating
plan. he receives less money for his
surplus product.
This procedure, 1t was explained,
helps to keep down a surplus of
milk which might otherwise reach
the Washington market.
New March Quotas Planned.
Mr.. Derrick revealed that around
March l the association expects to
announce new percentage quotas for
milk producers in this area, still
calculated on the associations base
surplus plan, in an attempt to raise
overall production of milk. Mr..
Derrick testified in the hearing last
week that farmers must produce
10000 gallons more of milk per day
at the close of this year to keep
up with Washington's growing
population.
Three large Washington dairies
Joined yesterday in mounting op-
position to dairy farmers request
they be paid higher price for milk
they supply handlers. Producers
have blamed increased farm costs
for their petition. Earlier in the
week consumer interest groups and
individuals lodged protests to the
rise.
A fourth local dairy joined in op-
posing any milk price increase here.
The objection came from Percy
Gibson, president of Model Farms
Dairy, who testified his company
was opposed to the price proposal
"at this time"
The dairy representatives testify
ing yesterday agreed that any in
crease in wholesale price of milk
or cream would have to be passed
on to the consumer, and for the
first time in the hearing dairy
spokesman revealed the price in
crease to Washington buyers would
amount to at least cents.
Dairy Warns of Increase.
Should the marketing administra-
tor of the Agriculture Department
grant the increase urged by the
association, retail milk here would
cost II cents a quart. This would
be the highest price for the COM
modify since 1921, according to
figures submitted by the producers
cooperative earlier in the hearing.
Coleman Gore. production man.
ager of Embassy Fairfax Dairy, went
so far as to report his concern would
have to raise the price l cent
quart even though the department
does not grant the proposed hike.
Mounting labor and production costs
within the plant, he testified, will
force the dairy to raise the price
Of milk some time after June"
John F. Hillyard, attorney for
Wakefield Dairy, testified that the
price of quart milk would be raised
cents if the amendments are
made. Most dairies are going into
the red," he declared, after they
pay this years taxes on what little
profits they made last year."
Accuses Producers.
His company has had to meet
rising costs for the past four years,
Mr.. Hillyard said in commenting
on arguments of farmers that they
have experienced recent price rises
on the farm. He charged that pro-
ducers have failed to present evi-
dence of their milk profits during
the past two years and added that
"the farmer already is receiving
very good price for his milk" in this
area.
Similarly Arthur E. Thompson,
president of Thompson's Dairy, reg
istered opposition to any price in
crease. He suggested that if farmers
experienced further rising costs
hearing be called in the fall to con-
slider an increase.
Mr.. Thompson maintained that
the present price producers receive
for their milk was in reality an in
crease. Farmers, he pointed out,
were granted a temporary rise last
September and that figure would
expire in May.
Mr.. Derrick returned to testify
late in the day and produced
Board of Trade figures showing that
while other food prices have gone
up considerably since last year the
per capita consumption of such
products have shown no decrease.
This was in refutation to numerous
witnesses who have claimed price
increase in milk would cut down
consumption, particularly among
low-income families.
Milk continues to be the cheapest
food while other commodities show
marked increases, Mr.. Derrick
claimed.
Secretary of Agriculture Wickard
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