Evening star., 1948-10-03
Milk Producers
Won task Boost
InPricesHere
Reduced Cost of Feed
For Livestock Seen =
Factor in Decision :
By Malcolm Lomborne, Jr.

The Maryland and Virginia Milk
Producers Association announced
last night that its board of directors
had voted not to ask for an increase
in the producer price of milk, assur-
ing Washington area consumers that
their milk bills will not be raised at
this time.
Bruce B. Derrick, association man.
ager declared in a statement, that
there would be no price revision "un-
less there is a material change in
economic conditions that would add
to present milk production costs and
jeopardize the Washington milk
supply
He disclosed that the action was.
taken at the directors meeting here
Friday after more than threa
months careful study of milk pro-
duction costs and economic condi-,
tions."
Baltimore Price Raised. :,
There had been speculation for,
more than a month on whether pro-,
ducers in this area would seek an
increase. In the past, dairies have.
passed on higher wholesale prices
to consumers. On September /, the
producer price of milk in the Balti-
more area was increased the equiv:
alent of one cent quart. This fol-
lowed a half-cent increase in July
and the two increases brought the
wholesale price in that area above
the Washington milkshed price.
While Mr.. Derricks statement
made no mention of it, lower prices
for livestock feed were believed to
have been a factor in the decision.
Bumper grain crops this year in.
dicate there will be no feed short-
ages this winter.
Mr.. Derrick said this was the Sec
ond time in more than two years
of continually rising commodity
prices, wage rates and living costs
that the association has voted not
to increase the price of milk to its
buyers"
Chain to Cut Meat Prices.
Another price development yes
terday was announced in New York
by the Grand Union Co. effective
tomorrow, reductions in retail prices
of 40 cuts of meat will be posted in
the companys supermarkets. The
price cuts were attributed by the
company to a general break in the
dressed beef market, resulting from
heavy receipts of live cattle.
While the company has no Wash
ington outlets, a spokesman for
group of supermarkets here said the
reductions in New York may be
the forerunner of general price re-
ductions"' here Some stores here
reduced steak prices last week.
Hog prices on the Chicago live
stock market last week were at the
lowest level since last June. Factors
in the drop were sharply lower mar
kets for pork, increased livestock
receipts and larger deliveries Of
new crop hogs expected in the COM
ing weeks.
The Agriculture Department has
cautioned farmers to slow the
movement of their hogs to market
in view of falling prices.
Consumers Warned on Buying!
Compared with a week ago,
butcher hogs were 50 to $3.50 lower
and sows $3.50 to SO lower. Slaugh-
ter steers were so cents to $3.50
lower.
The department reported yester-
day that unless consumers cut down
on their buying, they can expect
little relief in high meat prices.
A Bureau of Agriculture Economics
report stated:
Since total meat output will be
little different next year, changes
in prices of meats and meat ami
mails will be due mainly to changes
in demand A continued strong
consumer demand would hold prices
close to their 1948 level"
The report estimated per capita
supply of all meat next year would
be between 140 and 145 pounds.
This years estimate was las pounds
per person.
Consumers, the survey continued,
will find more pork and less beef
available in 1949. Because of the
large grain crops. more cattle will
be granted. This means better
grades of beef.