Evening star., 1954-04-17
Ru|ingExpected
'byMay | on
Milk Price Cut
Virginia Commission
Studies Proposed Dip
For Washington Area

otuo'eS proposed Dip
For Washington Area
The Virginia State Milk Com
mission expects to rule by May
on a. proposed reduction in
milk prices for the Washington
area.
Views of distributors, produc-
erS and consumers were taken
under advisement by the COM
mission yesterday after a hear
ing in Alexandria.
Three dairies, Chestnut Farms
Chevy Chase, Thompson and
Alexandria, asked that milk
prices be lowered at both the
retail and producer levels. A
cut of one cent per quart was
suggested, with corresponding
reductions in producer prices.
Producers protested. They ar
gued that their income from
milk sales already is lower than
it was last year at this time
because of the recent reduction
in Government price supports
on certain dairy products and
higher production costs.
Distributors Want Cut.
Briefly, this is the situation
as it is being studied by the
milk commission: Three major
distributors want milk. prices
lowered, but they want to pass
the cut along to the producer
level This would leave the dis
tributors' margin of profit un-
changed, and the producers
would have to bear the entire
price cut.
Representatives of the Mary
land and Virginia Milk Produc-
erS' Association presented statis-
tics showing that dairy farmers
have not requested or received
an increase in producer prices
since 1851, while distributors
have won two price increases in
the same period.
Distributors said they advo-
Gated a reduction because the
Washington area market has a
milk surplus, and they believed
lower prices would stimulate
sales,
Bruce B. Derrick, manager Of
the Maryland and Virginia Milk
Producers Association argued
that surpluses come and CO."
He said milk production during
the first Is days this month was
below the corresponding period
last year. He warned that If
the current rainfall shortage
continues well an have our
tongues hanging out for milk by
July"
Dairy Farmer 'Riled.'
One dairy farmer. Thomas M.
Garrett of Rockville. said it
"riled' him to hear the distribu-
tors asking for a decrease.
If they want decrease, let
them share it with us, said Mr.
Garrett. --...,.
Russell T. Rocks of the Capt.
tai Milk Producers Association
argued that the dairy farmers
had not enjoyed any reduction
in production coSts-"they would
be justified in asking for a price
increase.
The producers won support
from the only two milk conSum-
ers who spoke at the hearing.
Mrs. c. G. Perkins of 4643
North Thirteenth street, Arling-
ton, q housewife, presented a
chart showing that producer
prices have been declining while
consumer prices have risen. She
said the professors and cistribu-
tors should do more to stimulate
sales of dairy products, such as
Offering gift coupons. She said
she objected to minimum price
fixing on milk, declaring that it
killed the incentive to stimulate
safes,
Mrs. Ernest w. Howard of the
District Federation of Women's
Clubs said her organization was
interested in maintaining a high
quality of milk in the Washing
ton area. She said it would be
too bad for the sake of l cent"
to penalize the dairy farmer.
Still another view was pre-
sented by Arthur B. Hansen. at
torney for Lucerne milk which
is sold in Safeway stores. He
argued that the milk commission
should stop fixing retail prices
and establish minimumS only for
producer prices. Milk sold in
stories in Virginia could now be
reduced / cent without changing
producer prices at all if there
were no retail price minimum, he
declared.
The current retail prices Of
standard milk in nearby Virginia
are 22.5 cents per quart for milk
sold in stores and 24.5 per quart
for home-delivered milk. Pro-
ducer prices average $3.50 per
hundredweight for 3.5 per cent
butterfat milk. including pre-
miumS.
The milk commission fixes
minimum producer and distribu-
tor prices for milk sold in Vir-
gInia and Washington prices are
governed accordingly because
most milk is bought by the
dairies through the producers
association composed of Virginia
and Maryland dairy farmers.