-5- 1 



"We are urging our own people to eat more cheese and use 

 more evaporated milk. It is one of our best foods. Also, it lightens 

 the load on other protein foods of which supplies are limited. 



"Butter, of coiirse, is considered the basic product in the 

 dairy Industry, but lend-lease demands for it have been limited. So 

 far protein foods are more in demand. It's difficult to estimate what 

 the requirements will be. But ordinarily we import a considerable 

 volume of vegetable oils from other countries. Because these imports 

 have been cut off, it's inevitable that more butter will be needed here 

 at home. We want to be sure adequate butter production is maintaine.d 

 and we want stable and fair prices for it. We don't want a Jittery 

 butter market, and there is absolutely no basis now for anything except 

 a sober, stable market. 



"Last fall when the 19^2 production goals were announced, the 

 Secretary of Agriculture issued a proclamation stating that he would 

 use available funds to support the price of cheese, evaporated milk 

 and dry skimmilk. With this guarantee, prices will not be allowed to 

 fall below ^5 per cent of parity. 



"Meanwhile, to stabilize prices and assure adequate produc- 

 tion of all dairy products, we are supporting butter at a minimum of 

 36 cents a pound (92 score at Chicago) for the remainder of this year, 

 putting a definite floor under the butter market. Since March 25 but- 

 ter prices have averaged above that levels We have bought very little 

 butter incident to that program. 



"The average price received by farmers for butterfat last 

 month was 102 per cent of parity. Cheese on the Wisconsin Exchange 

 was about II5 per cent of parity — the average price paid by evaporating 

 plants for milk, about I05 per cent of parity. The average price 

 received by farmers for milk and butterfat was above parity." 



