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

by MALCOl+M LAMbORNE, Jr.
Milk producers in the Washington
area will seek an increase of 49
cents per 100 pounds in the price of
fluid milk when the War Food Ad-
ministration opens public hearing
here April l6 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 bye1 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 sub
sidy arrangement.
Calls Increase Necessary.
Bruce B Derrick, executive Sec
retary of the Maryland and Vir-
glnia 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
s55 and $50 ton compared with $25
a ton in January, 1941.
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 60 and 80 cents
per 100 pounds for milk. The VIA
originally had planned to cut the
payment back to 35 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
a 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,
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 a country re-
ceiving station at Cumberland, Md
Want Market Wide Pool.
Substitution of 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
biic illdl hcI WUulo bc pUOlcu dIlu
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 a bonus in Sep
tember, October and November,
when milk production takes a drop;
Redistribution of milk which
would define Class 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
Class milk to mean that used for
making ice cream and h,Itter