needed for evaporated milk. The requirements for evaporated milk have 

 been reduced from 22 to 7 million cases a year, and the requirements 

 for powdered milk have Increased proportionately. That means quite a 

 shift In the manufactured milk Industry In the United States, The 

 government has placed a floor under the price of butter guid cheese, and 

 since the price the farmer receives for milk Is based on butter and 

 cheese prices, the floor price in the north-central states is $1,72 

 for 100 pounds of milk of 3,5 percent butterfat content. Stocks of 

 evaporated milk are piling up, but the government is seeking to find 

 an outlet for this milk by giving it to low Income families and to 

 school children under the school lunch program. An effort is being 

 made to divert as much milk as possible to the production of spray- 

 process powdered milk. Unfortunately, the demand for roller-processed 

 milk is limited and the demand for spray-processed is very strong, 

 while the production facilities are Just the reverse. 



The butter and cheese situation was summarized by Mr, 

 Mr, Hendrickson as follows: 



« 



"Right now the current rate of production at 1 billion 

 pounds a year appears adequate to meet requirements. This production, 

 however, should be maintained. Any considerable decrease might put us 

 back in a serious position, 



"Storage space is short in some areas, AMA has taken action 

 to relieve acute situations resulting from government holdings. This 

 will mean that our storage stocks in Wisconsin, for instance, will be 

 low, 



"More emphasis is needed to produce cheese that will grade 

 U, S, No, 1, 



