Evening star., 1951-09-27
1-Cent Increase
In Milk Prices
Due Monday
Higher Costs Cited;
Delivered Product
To Bring 23h Cents


To Bring 23l2 Cents
Milk prices in the District are
are due to go up a cent quar-
beginning Monday.
B. B. Derrick, secretary of tn
Maryland-Virginia Milk Produc
ers' Association, said the boost
caused by increased operating
costs.
The associations board of direc
tors met yesterday and voted t
increase prices to dairies by 4
cents per hundredweight, or abou
nine-tenths of a cent a quart, h
explained.
This will result in consumer
paying retail milk prices per quar-
of an all-time high of 2312 cent
delivered to homes and 81 cent
minimum if the customer picks u
his milk bottle in the store.
Agreement Cited.
Mr.. Derrick said that his organ
ization had "a complete agree
ment between each individual
milk distributor" before the in
crease was ordered into effect.
An overall operating increas
of 18 per cent has resulted TO
producers, Mr.. Derrick said, sine,
the Korean campaign started
The lack of rain has added to thu
costs, he pointed out, becauS,
since the middle of August a 10
of milk producers in this regiol
have been feeding their herd
from winter stores.
Reserve Feed in Use.
This means that since mid.
August, farmers have been usin!
hay and other feed stored for thu
winter that would not ordinaril.
be used until November l, he said
Further, Mr.. Derrick asserted
the Federal Government is taking
farm labor in increasing numbers
paying higher wages, thus de
priving the farmer of help.
Mr.. Derrick pointed out tha
the association had agreement
with Thompson's Dairy and tn
Chestnut Farms Chevy Chas
Dairy, which are now reporte
protesting the milk price increase
He said that other milk distrib
utors here also agreed to tn
boost.
Herman "A. Schulteis, vice-pres
ident of Chestnut Farms -Chev,
Chase Dairy said:
1--WE have petitioned the Virgini
State Milk Commission to reviey
the price situation. If the associ
alton goes up. we will have NJ
alternative whatsoever but t.
hike our price, then comply will
whatever the commission decide
when it does have hearing.
Commission Petitioned
while we have petitioned tht
commission for a hearing, they
have to set future hearing datt
under their rules, but will no
be able to hold that hearing il
advance Of the first of the month
If we are going to have to pay
the increased price to the asso
citation, our price must neces
sarily be put into effect Monday
We have no alternative becausl
we here in the Washington mar
ket operate on the narrowes
price margin of any market il
the country"
Thompson's Dairy prices will g
up one cent quart Monday, Rob
ert H. RaWlins, production mana
ger, said, but even at that tn
firm will lose money, he asserted
. His firm has petitioned the Vir
ginia Milk Commission to deter
mine whether the producers in
crease is justified, he said. TIL
increase to the distributors of tn
Washington area will be NOR
than one cent, Mr.. Rawlins con
tended.
Outlines Situation.
Mr.. Rawlins outlined the situa
ton thus:
THE statement that the pric
to the distributors has gone Vi
only nine-tenths of a cent is er
roneous. The farmers organiza
tion has done two things-chang
the butter fat basis on which w
have purchased for Is or 30 years
They have lowered the tradj
tional base from per cent but
terfat to 3l2 per cent butter far
They have reduced it by half
point and increased the differen
tial from 6 cents to a formuI
based on the Philadelphia crear
price, which is running around 8.
cents for one-tenth of l per cen
butter fat in a hundredweight G
milk.
That in itself has increased tn
price Of per cent butter fat mill
Price Goes Up.
"on top of that, they have in
cerased the price by Al cents
hundredweight.
I'VE also face the additions
cost here of the increased com
mission to our route men. Fac
time the price of milk goes w
the commission also goes up.
I'VE are perturbed over the fac
that this base change and increas
will cut into our admittedly loves
profit margin in the United State
by three to four cents per hun
dredweight. And as conseouenc
we have petitioned the only mil
regulatory body in this area, tn
Virginia Milk Commission for
hearing. We have asked ther
particularly to hear evidence t
set a maximum price both to tn
farmer and to the consumer.
Authority Cited.
I'VE know they have that powe
Under the Uiroinjo Low, ,,ol-