Evening star., 1947-12-28
Tariff Cuts Seen
AS Threat to i. S.
Dairy Farmers
By Jones birchfieId
By JONES BirchfieId

American dairy farmers are look.
ing toward 1948 with some misgiv-
inss. They believe the tariff cuts
provided in the General Trade
Agreement signed last October at
Geneva are a threat to their
solvency.
The National Cooperative Milk
Producers Federation, in q year.
end summary, said the tariff cuts
may be quickly felt by farmers
after they become effective jan
uary 1. If the effects are not felt
Immediately, the federation added
their implication for the future OF
dairying is inescapable.
Even in the face of continued
world shortages of dairy products, .
the federation stated, "they may
nevertheless pour into the United
States because of the even greater
scarcity of dollars in world mar
kets."
Butter Tariffs Lowered.
The federation pointed out that
butter tariffs in the new schedule
have been lowered so per cent, to
cents a pound, the lowest since
1921.
The federation added that while
not more than 100000 pounds
imported between November / and
March Of any season can take
the low rate, this quota exceeds
any years butter imports In oul
history"
In addition to butter, the fedora.
ton said, duty reductions become
: effective January l on Is othel
dairy products, with reductions
ranging up to so per cent of tht
previously effective rate as per
mitted under the Trade Agreement
Act as extended in 1916.
The federation said high levels
Of milk consumption and higt
: prices to the dairymen may be of.
. set in part by European relief
which also means high grain prices
and feed costs.
Dairy prices have Jagged in the
general upward movement Of prices
since controls were removed, the
federation said, while dairy costs
have risen continuously during the
year. This trend Of higher costs tc
J dairymen seems certain to carry
we'll into 1948, the federation pre-
dicted.
Feed and Labor Costs High.
This years short corn crop and
5 the pressure of exports have carried
| feed prices to record heights, the
i. federation declared, adding that nc
. relief is in prospect before next falls
harvest.
At the same time, 1t said, farm
wage rates are rising, along with
production and machinery costs.
, Pointing out that competition
. with other livestock for the avail
able feed supply has been keen, the
federation predicted that milk pro-
| duction next year may suffer most
, in the inland areas where prices OF
, grain and prices for livestock other
, than milk will carry a substantial
advantage over dairy prices.
, 1.-THE dairy production outlook
| also faces the handicap of reduced
COW numbers" the federation stated
For the third successive year the
: Nations dairy herd has been re-
duced in size. Continued heavy
culling seems certain as long as
5 meat prices are high and as long
, as dairy production costs make all
but the highest producing cows un-
: profitable"
Production in 194S Of many dairy
n products is certain to decline, the
| federation stated, while supplies OF
, milk for use as fluid milk, fluid
cream and ice cream will depend on
having prices adequate to maintain
, production levels and to even out
seasonal production patterns in spe-
ria q1ized fluid milk art.0a