U.S. DAIRY PRODUCE

Press, Volume XC, Issue 27407, 21 July 1954, Page 11

U.S. DAIRY PRODUCE

Output Starting To Level Off (Rec. 7 p.m.) WASHINGTON, July 19. The United States Secretary of Agriculture (Mr Ezra Benson) said today that in the United States there was a move towards a better balance between dairy supply and demand and he hoped the situation would be under control in a matter -of months. Lower support prices, Mr Benson said, had led to smaller production, while butter consumption was about 7 per cent, higher in April, May and June than in. the same three months of 1953. He predicted that the Senate this week would back the lower support prices for butter, cheese and other dairy products. These supports were fixed by Mr Benson at 75 per cent, of parity. The old parity support level was 90 per cent. • If dairy supports were raised to 80 per cent, of parity, the Agriculture Department would have to buy an additional 100,000,000 or 150,000,0001 b of butter a year and consumption would drop 50,000,0001 b, Mr Benson said. He also said he did not expect price supports for the 1955 wheat crop to drop below 80 per cent, of parity, which would mean a support price of 199 cents a bushel.

The present 90 per cent, of parity required by law guarantees the farmer up to 224 cents a bushel for his wheat.