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food processors, ccnversicai to a wartime basis consisted mainly of mechanical adjust- 

 ment t6 Government packaging and formulae specifications. Utilizaticaa of surplus 

 capacity during «ie war made additions to existing plant facilities unnecessary in 

 most instances. Main w»rtime conversion difficulties were in the fields of price con- 

 trol and allocatioB of available production. Now, with few plant reconversions to 

 make, generally Ipv inventories, and good financial positions after several wartime 

 years of profitable operation, most food marketing agencies find themselves in a ] 

 relatively strong position to iwet Increasingly competitive conditions in the civilian 

 market. 



Marketing charges higher in 19^6 . Prospects for 19k6 indicate moderate in- 

 creases in charges for maziteting most feirm products. Increases will not be uniform 

 for all products, and probably will be large for cxily a few foods, particularly meat ■ 

 products. Both the 19^1^6 and the longer-range outlook for marketing costs eind charges 

 depend very largely upon developments in various Government activities, peurticularly 

 those relating to: (l) price controls, (2) price supports for farm products, (5) sub- 

 sidy payments to marketing agencies and farm producers, (U) regulation of wage rates 

 and labor costs, (5) levels of farm production, and (6) levels of demand for farm 

 products (employment €md consumer income, export, and Government purchase programs). 

 The sum total of these factors will probably have more influence than the prospective 

 developments in internal organiziition of the marketing system in determining future 

 levels of marketing charges and costs. 



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OLW:gl 

 I2-26-U5 



