Evening star., 1948-05-27
The Margarine Price Scare
Analysis Indicates Oeo Will Follow CostofLivine Trend
Like Butter or Any Other Food
ByChalmers NJ. Roberts

On May 5, the price was IS cents pound.
BY the 9Th it was 3sh cents and by the
18th 40 cents In the last few days the price
has receded couple OF cents.
Trading in cottonSeed oil, according TO
Agriculture figures has been very heavy-l0
times what it was at this time last year. Not
all of this can be charged up to speculation
but certainly some Of it can be- In April this
year .1sl $50 900 pounds were traded compared
to 18, ,4s0 900 in April, 1947.
All of these figures add to Mr. Andresens
contention that the tax repeal move Is driving
up cottonseed oil prices which, in turn, will
mean higher retail prices for margarine.
But the dairy-butter lobby has its signals
somewhat mixed. The whole idea Is knocked
down in handsome brochure just distributed
by the National Cooperative Milk Producers
Federation.
Under a heading More Oleo Would Not
Mean Higher Oil Prices" the pamphlet points
out that fats and oils are more or less COM
petitive and interchangeable" and that
relatively small amount OF the total supply
of all fats and oils Is accounted for by the
cottonseed oil going into margarine.
Then it adds:
Effect on Fats Discounted.
In view of the very small proportion Of
all fats and oils represented by oleomargarine,
it would require tremendous net increase in
the consumption of oleomargarine to have
any dscernible favorable effect on the price
of cottonseed oil or any other fat or OIL
This, of course, was being said to convince
the cotton grower that he doesn't really have
a big stake in margarine and shouldn't work
so hard for tax repeal
The other part of the last minute price
of r,rioo
for colored margarine If the present 10-cents-a-
pound tax is removed.
John Brandt, head of the milk producers
markup for colored over uncolored margarine
is far in excess of the 10-cent tax difierential,
in places where both are sold. He said it
ran from to n cents = pound extra.
One answer to this argument came in a
recent Star grocery advertisement Margarine
in quarter pound prints, 80 cents plus tax"
The uncolored type sells for 80 cents up.
The larger answer to the price scares lies,
of course, in the general cost Of living pic
ture. That picture, from the consumers stand
point, is currently most dscouraging.
The Bureau of Labor Statistics consumers
price index in mid-March reached a record
1898 per cent of the 1858 average and the
housewife. certainly hasn't noticed any down.
swing in the past month The main reason
for this new all-time peak in living costs is
the cost OF food, including butter and mar
garine.
1t would seem to make more sense, then. to
argue that the margarine taxes and other
restrictions against the wide sale Of colored
margarine should be removed so everybody
will at least be able to obtain this compare
lively low cost spread.
Nobody should expect the price to drop with
tax repeal. 1t may well 60 up. But, as far
as the evidence available today indicates. the
price Of margarine will move up or down
with the general swing of other basic cost-of-
living items in the consumer's market basket,
not for any reason peculiar 10 itseif.ss