Evening star., 1945-04-01
Milk Producers
In D. {. Area
Seek Priceb Boost
Subsidy to Prevent
Rise to Consumers
Is Held Likely
By MALCOLM LAMBORNE, Jr.


Milk producers in the Washington
area will seek an increase of 40
cents per 100 pounds in the price Of
fluid milk when the War Food Ad-
ministration opens a public hearing
here April 16 on proposed changes
in the Federal milk marketing order
for this area, it was learned yes
terday.
The Accent proposal would have
the effect of hiking the retail price
of milk by cent a quart, according
to VIA sources.
However, should producers receive
the increase, it was considered likely
that the increase to consumers
would be avoided through some SUBJ
sidy arrangement.
Calls Increase Necessary.
Bruce B. Derrick, executive Sec
retary of the Maryland and Vir-
ginia Milk Producers Association,
said the price increase was neces-
sary to compensate producers for
higher production costs and to more
nearly align Washington prices with
those paid for milk in nearby mar
kets.
He pointed out that dairymen's
wages have risen materially since
1941, while hay now costs between
$55 and $50 ton compared with SIS
a ton in January, l941.
Meanwhile, the VIA, with the
approval of Economic Sterilization
Director William L. Davis, an
nounced it was extending un-
changed through April its dairy
subsidy program with payments
ranging between go and 80 cents
per 100 pounds for milk. The VIA
originally had planned to cut the
payment back to IS cents starting
today. Producers in this area have
been receiving subsidy of 80 cents
per 100 pounds.
Official Support Given.
The announcement said the ex-
tension was found necessary after
review of current costs of milk
production. Officials thus lent sup
port to the association claim for
fiat increase in milk price.
VIA cited higher prices for hay,
higher farm wage rates and de-
creased farm labor supply as pri-
marily responsible for the postpone
ment of the seasonal cut in pay
ments Dairy production payments
were initiated by the Government
IN October, 1943, when milk produc-
ton began !. to fall.
Proposed changes to be discussed
at the hearing, to be held in the
United States Chamber of Com
merce auditorium, include:
| Extension of the marketing area
to include the urban area of Ar
lington County and the city Of
Alexandria. and the extension of
the milkshed to include producers
shipping milk to country re-
ceiving station at Cumberland, Md.
Want Market Wide Pool.
Substitution of a market-wide
pool for the individual handler
pool now in effect. Under the new
plan, the total quantity of milk sold
by all producers to distributors in
the market would be pooled and
each producer would be paid accord
ing to the amount of milk he has
sold regardless of the use made Of
the milk by the distributor;
Establishment of a fund from
payments due producers to encour-
age greater milk production in the
months of seasonally low output.
Under the amendment, a specified
sum would be withheld from pro-
ducers' return in April, May and
June (months of peak production)
and to be used as bonus in Sep
tember, October and November,
when milk production takes drop;
! Redistribution of milk which
would define Glass l milk as milk
used for fluid consumption, includ-
ing buttermilk and favored milk:
Glass milk to mean that used for
cottage cheese and table cream, and
Glass milk to mean that used for
making ice cream and butter.