Page Eighteen 



THE I. A. A. RECORD 



August, 1931 



personal advantage or generally to dis- 

 credit the Farm Board and its efforts to 

 help the farmers. TJn fortunately, many 

 people who have the farmers* interests 

 at heart have been misled by such prop- 

 aganda. Farmers sljould understand 

 that the real purpose back of this cam- 

 paign is to block them in their efforts 

 to organize their own marketing system. 



Trade Opposition 



"It is not surprising that the private 

 marketing trade should resent the 

 growth of co-operative marketing and 

 the aid which the Board has given to 

 marketing organizations. More business 

 to the co-operative means less to the 

 private trade. The eUmination of fluc- 

 tuations in prices takes away the spec- 

 ulator's opportunity to profit from such 

 price jfluctuations. It is even natural 

 that all those who are bitterly hostile 

 to the Agricultural Marketing Act, the 

 Federal Farm Board, and the national 

 co-operative marketing program, in 

 other commodities as well as wheat, 

 should seek to have the Board adopt 

 mistaken policies, particularly if these 

 would endanger the Board's financial 

 position and weaken its standing with 

 farmers and the country. 



Best System Will Survive 



"Naturally, there will be competition 

 between co-operative methods of sell- 

 ing farm products and the old methods 

 which have been used for many years. 

 The first reaction on the part of many 

 of those engaged in handling farm 

 products under the old system when 

 the Agricultural Marketing Act became 

 a law was that the change would be 

 sudden, and would, therefore, jeopardize 

 their business. You are reminded, how- 

 ever, of the fact that any changes from 

 one system to another necessarily will 

 be gradual and the industry will have 

 opportunity to adjust itself in meeting 

 these changing conditions. Progress is 

 always painful and the system render- 

 ing the best service is the one that 

 survives. 



Cost of Distribution 



"We hear a lot about the rising cost 

 of distribution. This is not confined 

 to agriculture alone, for it affects every 

 line of modern economic activity.. Let 

 me quote you a statement by an out- 

 standing authority, Roger W. Babson, 

 issued June 14: 



" 'The keynote to future prosperity 

 is improvement in distribution methods. 

 Distributors must cut costs and pass 

 along to the consumers the saving al- 

 ready achieved in production. Progress 

 in production has far outstripped prog- 

 ress in distribution. Our distribution 

 system, because of its high cost, is still 

 the bottle neck which prevents the free 

 flow of mass production which gets to 



the consumer. This business must at- 

 tract that great potential market among 

 the lower income classes to provide an 

 adequate outlet for its huge producing 

 capacity and to do this it must reduce 

 costs. Authorities estimate that the 

 avoidable waste in distribution is be- 

 tween $8,000,000,000 and $10,000,- 

 000,000 a year.' ^ -■ J 't .v^:- : 



"I want you to think carefully of 

 that statement coming from an authori- 

 tative source, referring to the situation 

 that confronts the industrial and busi- 

 ness world. Industry is m-uch better 

 organized and, therefore, has a greater 

 bargaining power in the sale of its 

 products than is possible for the farm- 

 ers, acting individually, to have. If it 

 is necessary for business to organize to 

 meet these situations squarely, then it 

 certainly behooves the agricultural pro- 

 ducers to unite their efforts to eliminate 

 all wastes and unnecessary services be- 

 tween the producer and the consumer." 



(For July based on 3.5% milk unless 

 otherwise specified.) 



Baltimore — Maryland State Dairy- 

 men's Assn. announces $2.84 per 100 

 lbs. del'd for class I basic fluid milk; 

 f. o. b. country pt. $2.32. Class II 

 $1.86 del'd, country pt. $1.34. Cash 

 and carry 12c. 



Pittsburgh — Dairymen's Co-Oper- 

 ative Sales Co. announces $2.68 del'd, 

 $2.03 country pt. for 100 lbs. Class I 

 fluid. Class II $1.49 del'd, $1.10 coun- 

 try pt. Class III surplus, butter prices 

 (.04 cents per 1/10% butterfat). Re- 

 tail 12c. 



Springfield — Producers Dairy Co. 

 announces $1.90 for Class I basic fluid 

 milk del'd to city. Retail 9-1/11 cents. 

 Cash and carry 8c. 



Rock Island — Quality Milk Ass'n 

 announces $1.85 per 100 Class I basic, 

 f. o. b. country pt. Class II $1.25. 

 Retail 10c. Cash and carry 8c. These 

 are the prevailing prices, but not the 

 price agreed upon by the dealers and 

 the Quality Milk Ass'n. Class III but- 

 terfat price. .' r 



DeKalb— Milk Consumers Ass'n an- 

 nounces $2.32 per 100 for Class I basic 

 fluid milk del'd. Surplus butter 92 



score market. Retail 12c. Cash and 

 carry lie. 



Chicago — Pure Milk Ass'n announces 

 Class I basic fluid $2.32 country pt7 

 June Class II 93c country pt. June 

 Class III 78c country pt. Retail 13c. 

 Cash and carry W/zC. 



Bloomington — McLean County Milk 

 Producers announces Class I 38'/2C per 

 lb. butterfat. Class Ila 31.85c per lb. 

 butterfat. Class II 28.8 5c per lb. but- 

 terfat. Class III 26.3 5c per lb. butter- 

 fat. The prices for 4% milk f. o. b. 

 Bloomington are: Basic milk $1,814. 

 Surplus milk $1,395. These prices in- 

 clude the 5 c per hundred checkoff. 



Quincy — Quincy Co-Operative Milk 

 Producers announces $2.20 per 100 lbs. 

 Class I basic fluid del'd. Retail 10c. 

 Cash and carry 8c. 



St. Louis — Sanitary Milk Producers 

 announces $2.15 per 100 lbs. Class I 

 basic fluid milk country pt. Class II 

 97c, Class III 81c. Retail 12c. Cash 

 and carry 10-1 Ic. In above prices 3c 

 checkoff has been previously deducted. 

 Have about a 50% surplus in July. 



Decatur — Decatur Milk Ass'n an- 

 nounces $2.06 for Class I basic del'd. 

 Class II $1.45 del'd, Class III 90c del'd. 

 Retail 10^/^c. Cash and carry iYzC. 



Pontiac — Pontiac Milk Producers 

 Ass'n announces $1.92'/2 for Class I 

 basic. Class II 32c per lb. butterfat. 

 Retail 10c. Cash and carry 8c. 



McLean County Producers 

 Report July Sales 



The total volume of milk produced 

 by members of the association for July, 

 1931, is 1,783,643 lbs. It was disposed 

 of in the following manner: fluid milk 

 and cream representing 616,784 lbs., 

 milk to other dealers representing 91,- 

 144 lbs., manufactured milk represent- 

 ing 872,737 lbs. and surplus milk rep- 

 resenting 202,978 lbs. 



Fluid sales are off 3.85% as com- 

 pared with June, 1931. July sales are 

 down largely due to the summer stu- 

 dents leaving town and the people who 

 are on their vacation. Sales are up over 

 16,700 lbs. as compared with July, 

 1930. 



July production is off 18.41% as 

 compared with June, 1931. 



Four hundred and fifty-three mem- 

 bers delivered milk during July, with 

 an average production of 126.20 lbs. 



July prices for 3.5% milk f. o. b. 

 Bloomington are: 



Basic milk $1,588 



Surplus milk $1,220 < 



The Mid-West Grain Corporation 

 handled 1,063 carloads of grain in 

 the month of July, more than 3,200 

 in nine months of operation. 



