352 GENERAL FARM PROGRAM 



Mr. Murray. Now, let us spell it out so we know where we stand. 

 What does that 67 cents mean — the butterfat that goes into butter or 

 the butterfat that goes into cheese or ice cream or other products? 

 We have $4.22 as the national average on fluid milk, which is roughly 

 a third of the milk in the United States, but I want to know what is 

 going to happen to the other two-thirds. 



Secretary Brannan. I will have to beg your pardon. I do not 

 understand the purport of the question. 



We have suggested that if, as, and when it is necessary to support 

 the price of butterfat under the support-standard formula the price 

 would be at 67 cents. 



Mr. Murray. But it is confusing. In one place is says $4.22 for 

 milk. 



Secretary Brannan. That is for wholesale fluid milk. 



Mr. Murray. Most of the milk leaves the farm in fluid form now. 

 A very small part of it leaves the farm as manufactured products. 

 The farmer does not know what becomes of the products after he 

 sells the milk. During the past years they have been able to buy 

 that on a manufactured basis, and they sell it, many times, on a 

 bottled basis. 



Wliat I am trying to do is get this spelled out so I will know what 

 the milk is going to be supported at when it is used for manufacturing 

 purposes. 



Secretary Brannan. Let me ask Air. Wells to explain that. 



Mr. Wells. This term "wholesale milk'' has been generally used 

 to cover milk going into fluid or class I consumption, milk going into 

 cheese, milk going into condensed and evaporated milk, and milk 

 going into the dry milks where you use all the butterfat and all the 

 milk. 



Mr. Murray. But they do not use just butterfat to make any of 

 those commodities. 



Mr. Wells. But I say the wholesale milk covers those uses of milk 

 where all the milk is used by the manufacturer in the plant or by 

 the fluid milk market for human consumption. 



Mr. Murray. I realize that over a third of it goes into bottles, but 

 what I am trykng to get straightened out is what happens to the 

 other two-thirds. There is a lot of difference here, Mr. Secretary. 

 At $4.22, that is $1.07 a pound for fat, national average. For manu- 

 factm-ing pm-poses, it is only 67 cents for fat. 



Mr. Wells. Let us say it this way very roughly. About a third 

 of the milk goes into fluid or what you call bottled usage. About a 

 third of it goes into the production of cheese, condensed and evapo- 

 rated milk and dry-milk combinations where all the milk is used for 

 human consumption. About a third of it goes into butter. The 

 butter portion is covered under the butterfat price. The other man- 

 ufactured and fluid milk is combined in the $4.22 figure. Ordinarily, 

 the fluid milk means something above the $4.22. The other is some- 

 thing below the $4.22. 



Mr. Murray. I have been through this several times in the least 

 2 or 3 years, and I hope we get this spelled out. 



Mr. Pace. We will let you speU it. 



Mr. Murray. No; I do not think you will. 



Mr. Pace. Mr. Secretary, the fom'th list of commodities is where 

 you recommend that the marketing quotas and acreage allotments be 



