THE OUTLOOK FOR DAIBY PRODUCTS IN 19^6 

 By L. F. Stice, Extension Marketing Specialist 



Thus far In the World War II period unit returns (prices plus government In- 

 centive payments) have been consistently higher than In World War I (see chart). Re- 

 turns to farmers for dairy products In 19^6 are expected to "be moderately lower than 

 In 19^ and 19^+5* "but there is no Indication of such a sharp decline as occurred In 

 1921. Both military sind export demands vlll "be reduced, but milk: production Is also 

 expected to be lower than In 19^5* 



The actual level of returns to dairy producers In 19^ will depend partly 

 upon government action with respect to dubsldles and price ceilings. Dairy production 

 payments have been announced through March 19^ > and funds for both production pay- 

 ments and processor subsidies have been provided thixjugh June 19^6. The expiration 

 date of price ceilings has not been announced, but their removal will likely result in 

 price declines for whole milk and some Increase In butterfat prices. At present price 

 ceilings, supplies of butter will continue to be short of demand, while supplies of 

 manufactured whole milk products will be adequate to meet a declining demand. 



PRICES RECEIVED BY FARMERS FOR DAIRY PRODUCTS, U.S., BY MONTHS, I91U-I92I 



AND 1959-191^5 (Index numbers, 1910-191^=100) 



80 



Price plus production payments ^^ 

 1959-19^^5 ^ 



^ 



XLU 



"■■"'■"""■" 'I '' "I 



1.91^-1921 



"■ " I" ■ ii.!. III. iM H..II . li .m I n ei.h' 1 > I .. -I .1 iliM- II ' ■ ..tt'n 



1939 191*0 19li-l 19*^2 19U5 19^14- 19^5 19*^6 

 I91IV 1915 1916 1917 1918 1919 1920 1921 



260 

 240 

 220 

 200 

 180 



160 

 ll+O 

 120 



100 

 80 



