m 



-5- 



may be slightly greater than this year. However, civilian supplies of meat are ex- 

 pected to remain helov demand at ceiling prices during the remainder of 19^5 and in 

 the first half of igkS, according to government officials. They anticipate that the 

 prices of meat animals prohahly will he maintained at or near present levels during 

 most of this period, 



Slau^ter rules changed , Secretary of Agriculture Anderson has outlined re- 

 quirements which small slaughterers must meet to qualify for removal of quota limita- 

 tions and to ship nonfederally inspected meat across state lines. It is expected that 

 the first certificates under this system will "be issued within a few weeks. Revisions 

 cover an estimated one-third of the meat supply. To obtain these special certificates 

 permitting unlimited slaughtering and interstate shipment, slaughterers must show that: 

 (l) OPA prices, rationing and other regulations have been and are being observed; (2) 

 the meat will move at legal prices in legitimate channels; (3) the plant meets sanitaiy 

 standards, to be announced later; (U) slaughtering is done under supervision of "qual- 

 ified" inspectors, and (5) meat will be supplied government agencies in quantities to 

 be determined later, 



Larf^e potato crop expected . The largest potato crop ever reported is in 

 prospect for this year, based on potato yields announced by the United States Depart- 

 ment of Agriculture, The crop is forecast at 63,1 million bushels this year compared 

 with 52.7 million bushels in 19^4-^ and a ten-year average of U8.1 million bushels. 

 Commercial production of early potatoes was about 51 percent above last season's crop. 



More butter in August . The set-aside of creamery butter for government pur- 

 chase for the month of August has been reduced to 50 percent as a result of revised 

 war requirements, according to Secretary of Agriculture Anderson, The set -aside dur- 

 ing July was 50 percent. This will make available a 10 percent increase in the quan- 

 tity of butter to go to civilians in August and will make possible a slight reduction 

 in the point value of butter offoctivo July 29. The quantity available for the month 

 of August for civilian use will be about 90 million pounds compared with about 80 mil- 

 lion pounds in oach of the past few months. 



Fats and oil supply to remain tight . The tight supply situation in fats 

 and oils probably will continue well into 19U6, according to a Department of Agricul- 

 ture report. Some improvement will result when this fall's pig crop has been slaugh- 

 tered and the lard reaches consumer channels. An increase of 100 million pounds in 

 lard output is anticipated, but that will not be available until next year. Some de- 

 crease is expected in military requirements for fats and oils next year. Net exports 

 of fats and oils which were in great demand for use in liberated countries were only 

 slightly larger in 19^^ than in 19^5. Stocks on hand June 1 this year were reported 

 as the lowest in many years. No great change in output of domestically produced veg- 

 etable oils is anticipated. 



Retail prices of food rise . Retail cost to consumers of foods commonly used 

 in largest quantities rose during the month of May to reach the highest level since 

 July 19^5* The rise was due to an increase in food marketing charges which more than 

 offset a one percent decline in the payment' to farmers for equivalent quantities of 

 produce. The farmer's share of the consumer dollar spent for farm food products fell 

 to 53 conts in May from the recent high of 55 cents in January and a revised estimate 

 of 5^ conts in April, The increased marketing charges were largely for marketing 

 fresh fruits and vegetables. 



