Madison County Democrat. (London, Ohio) 19??-1958, 1951-02-02
Producer Price
On Milk Jumps

As a result of huge reductions
in the holdings of surplus dairy
products by the government ~
the last half Of December, the
producer price for fluid milk in
the Dayton-Springfield area in
creased 2214c per cWt. over the
November blend price, according
to a release today by Leslie G.
Mapp, general manager Of the
Miami Valley Mix Producers As
sociation.
The blend price in the local
area for Grade A milk testing 80
butterfat was $5.005 per exit,
while the grade B blend price
was S4.785 for for milk of the
same butterfat content, Mapp
said.
lie pointed out that milk pro-
duction per shipper In December
was nearly 3G5 less than in No
vember, and this reduced pro-
duction made it necessary 10
bring an increased amount OF
emergency Grade A milk into the
Dayton-Springfield market. In
December this emergency milk
represented 54fe Of the total
receipts for the month.
Mapp said that compared with
last year the production per ship
per was 2Gt higher in December,
1850, than for the same month one
year ago, and the blend price
for "a milk was 361ac higher.
However, according 10 Dr.. Z ].
Falconer, chief Of Agricultural
Economics Department of Ohio
State University, the cost of pro-
ducing milk in December, 1850,
was 47c per hundred pounds more
than 1t was in December, 1949,
Mapp emphasized that because
of the mounting costs of feed
and the increasing scarcity and
higher wages for farm labor, the
higher producer prise for the
milk marketed is an absolute ne
cessity.
The immediate factors Gcterm-
ining the price increase in De
cember were: (D the fact that
the Class prices for bottled milk
and cream increased approXima-
tely 28c per cwt., and - the
Glass III price increased approx
imately 16c per cwt., compared
with the November class prices.
Compared with last year, milk
sales in the area are running be-
tween So and 6ec higher. Mapp
explained that the blend prices
are determined by computing the
amount of milk used in each of
the prescribed classifications in
consideration Of the prevailing
class prices.
B. L. Bratten, Deputy Market
Administrator for Federal Milk
Order No. Il, which operates il
the Dayton-Springfield area, a.
nounced thar the total receipts q
milk in the combined market area
in December were 16,430 996 lbs.
with a gross value Of $5o1,55J.
This milk was produced On 2,l9C
dairy farms. in the % counties
comprising the market area. Mr.
Bratten said, that as in NoVam-
Der, 90ef Of the total volume Of
milk received was utilized in
bottled sales.
Mapp cited the fact that on
December %, the USDA an
nounccd that it had no further
butter to sell to the trade, and
since that time the price Of but
ter has increased approximately
Sc per pound. The price of cheese
and eyaporated milk is also high
er than q few weeks ago. Based
on these trends, he predicted that
the January blend price fos To-
cal producers viii lie su- u-stanti2llS
higher, and Will help to cO.ngc1-
safe for t!2e Increasing prolue-
ton costs.
In lis regular report 70 thc
members Of the Association, l1c
said if appears that produces
prices throughout 1851 viii BE-
better than in 1850 This puts
milk producers in more favor
able position than previously
and should encourage some whc
have been considering disposing
of their, dairy herds for beef, to
remain in the important lvori. ei
milk Drod1lptiG0