4 



What's Ahead for the 

 Dairy Farmer? 



By Wilfred Shaw, Director, Dairy Marketing 



SALES of bottled milk and cream 

 are very definitely higher in al- 

 most all Illinois cities and com- 

 munities. 



This good news to milk producers is 

 based upon reports from 21 co-operative 

 milk bargaining and distributing co-op- 

 eratives that are serving every major 

 Illinois market. The Pure Milk Associa- 

 tion, Chicago, and Sanitary Milk Pro- 

 ducers, St. Louis, report incrpasing bot- 

 tle milk sales. Other Illinois markets, 

 such as Rockford, Peoria, Moljne, Bloom- 

 ington. Champaign, Decatur, similarly 

 state that city consumers are buying 

 more milk and dairy products. 



This increase in bottled milk sales is 

 good news because the price received by 

 the producer for milk sold in bottles by 

 the dealer brings a higher price than 

 that paid for milk made into other prod- 

 ucts. 



General improvement in employment 

 and payrolls is the reason for higher 

 fluid milk output. Milk and dairy sales 

 definitely follow the general trend of 

 employment and payrolls as has been 

 demonstrated over the past ten years. 

 Milk advertising carried on jointly by 

 producer associations and dealers also 

 is contributing to increased consump- 

 tion. Quality improvement stressed by 

 members of Illinois Milk Producers As- 

 sociation is another factor. 



The situation in manufactured milk is 

 not so pleasant. In the average Illinois 

 milk market slightly more than half of 

 the milk received finds its way into bot- 

 tled milk and cream. The remainder goes 

 into ice cream, cheese, butter, condensed 

 and powdered milk. 



While the producer has gained an ad- 

 vantage through increased bottle milk 

 sales, prices for manufactured dairy 

 products have declined. Seasonal factors 

 coupled with some unseasonal factors 

 have reduced butter and cheese prices to 

 much lower price levels. The price of 

 manufactured milk is based upon butter 

 and cheese prices almost entirely. A de- 

 cline has occurred recently in manufac- 

 tured milk prices of approximately 30c 

 per cwt. and will possibly reach even 

 lower levels during June. 



Therefore, while Class I sales are 

 higher on most Illinois markets, the price 

 advantage gained thereby may be more 

 than offset because of lower surplus 

 prices. 



The whole price structure of milk is 



built upon butter and cheese prices. Cold 

 storage holdings of these products, there- 

 fore, are of interest. For the five-year 

 period, 1931-35, there was an average in 

 storage on March 1 of 20,492,000 lbs. but- 

 ter and 52,456,000 lbs. cheese. On March 

 1, 1936, there were 8,183,000 lbs. butter 

 in storage and 68,385,000 lbs. cheese. 



During the first quarter of this year, 

 creamery butter production throughout 

 the United States is 6 percent higher 

 than that of a year ago while cheese pro- 

 duction gained 25 percent for the same 

 period. Any prediction, therefore, upon 

 dairy prices resolves itself into a pre- 

 diction upon the trend of the production 

 of milk. 



Fruit Growers 



(Continued from page 11) 

 the same as in 1934, excepting that ex- 

 tremely hot weather during the pear har- 

 vest caused a decrease in demand for 

 the crop. Prices ranged from 50c to 90c 

 per bushel. 29,176 bushels or an equiva- 

 lent of 41 cars in bushels and 46 cars in 

 bulk were handled through the Ex- 

 change. 



Illinois produced a large crop of early 

 apples last year; the first few cars being 



sold at reasonably good prices while the 

 cars harvested during the latter part of 

 the season did not bring cost of pro- 

 duction. The Exchange handled 5,636 

 bushels of early apples in truck lots and 

 74 cars, or a total of 43,189 bushels. 



The fall and winter varieties of apples 

 produced in the State were also heavy. 

 It is estimated that the total apple crop 

 was 7,500,000 bushels in Illinois. This 

 large crop, together with decreased con- 

 sumption and demand, drove down prices 

 to unprofitable level.^;. The Exchange 

 feels that new outlets and new uses for 

 Illinois apples must be developed that 

 growers may secure fair prices. 



The Illinois Fruit Growers Exchange 

 has secured better average prices for 

 growers who have stuck with the co- 

 operative program than those who have 

 not. Day said. It has attained a place 

 as a dominating factor in Illinois, es- 

 pecially in sections where it has operated. 

 The Exchange has prevented, in many 

 cases, lowering of peach prices and, by 

 its bullish character of sales, has helped 

 sustain the peach market. 



A wider and better distribution of 

 products has been developed by the co- 

 operative which has also helped develop 

 truck sales. The quality of produce has 

 been improved. The Exchange has been 

 known for its fair trade practices, being 

 awarded the highest rating possible (4 

 Stars) by the Red Book. The Exchange 

 was instrumental in interesting the gov- 

 ernment in purchasing Illinois apples. 



Through the Transportation Depart-' 

 Continued on page 16) 



'Where the Best Costs No More" 



COME VISIT US! 



Tuesday- Wednesday-Thursday Evenings 



HEADING ON FULL PAGE ADVERTISEMENT IN DANVILLE COMMERCIAL NEWS AN- 

 nouncing Opan House at new Produeert Dairy plant. 



JUNE, 1936 



